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The Honolulu Advertiser
Posted on: Wednesday, January 4, 2006

Pay-per-view revenue up in 2005

By Ferd Lewis
Advertiser Staff Writer

PAY-PER-VIEW PAYOUT

What each partner stands to receive from 2005 UH PPV sales

KHNL/KFVE: $922,500

Oceanic Time Warner: $562,500

UH $65,000

Source: KHNL/KFVE

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TOP PAY-PER-VIEW SELLERS

By individual purchase apart from package

Football

1. Boise State 1,633

2. At Idaho 1,225

3. New Mexico State 858

4. San Diego State 813

5. At San Jose State 772

Men’s basketball

1. At UNLV 650

2. Saint Louis 400

3. Utah State 235

Wahine Volleyball

1. Nevada 600

2. Washington 550

3. Nebraska & Penn State 400

Source: KHNL/KFVE

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Revenue from pay-per-view showings of University of Hawai'i sports rose even though sales declined in 2005, a partner in the plan said.

John Fink, vice president and general manager of KFVE and KHNL, said revenue reached an all-time high of approximately $1,550,000 for the four years the station has combined with Oceanic Time Warner Cable and UH to offer the service to O'ahu and Neighbor Island viewers even as sales of packages dipped significantly.

Pay-per-view is the system whereby fans who can't — or choose not to — attend selected UH events can watch them at home by either subscribing to a preset package or buying games individually. Prices vary based upon whether the subscriber is a renewal, a new customer or Neighbor Island resident.

Kathleen Higashiguchi, a long-time fan, said she forsook Aloha Stadium tailgating for the convenience and comfort of her home.

"It is much easier for a person like me, who was cooking and prepping for the tailgate, having to get into the stadium and getting the same spot we always tailgate in," Higashiguchi said. "It is so much better sitting at home in the comfort of our own home with air conditioning, a large TV and having our tailgate more leisurely."

Prices rose approximately 25 to 30 percent in 2005, Fink said. For a 15-event package, including for the first time men's basketball and Rainbow Wahine volleyball events, new O'ahu subscribers paid $200 and new Neighbor Island buyers paid $75. Returning subscribers paid $175 (O'ahu) or $60 (NI). Individual games and matches ranged from $10 to $40, depending upon the sport, opponent and location.

Fink said 7,809 of the packages were sold this year, down from 8,997 last year. Fink said packages were expected to account for the vast majority of sales. This came despite KFVE dropping its 10 p.m. same-night delayed free telecasts of home football games. Those games, Fink said, usually drew 35,000 to 50,000 viewers.

Under terms of the current agreement Fink outlined, KFVE/KHNL would stand to receive approximately $922,500 as its share of the revenues while its partners, Oceanic and UH get $562,500 and $65,000 respectively.

Under the previous contract UH received $812,310 in 2004 and $628,726 in 2003. But as part of the new contract with KFVE/KHNL for which UH was guaranteed $1.75 million in rights fees, the stations and Oceanic get bigger shares of PPV sales. KFVE/KHNL had guaranteed UH $700,000 in 2004.

Herman Frazier, UH athletic director, was not immediately available for comment but associate AD John McNamara said, "We'll be sitting down with KFVE and Oceanic to review the entire pay-per-view landscape and to see what might be the best course going forward."

Fink said he was "somewhat disappointed" that the addition of Rainbow Wahine volleyball and men's basketball to the package didn't entice more to subscribe but said the newness and mid-July announcement of the package might have contributed to it. "It might be as much education as anything for the first time out," he said.

Fink said it hasn't been determined if PPV prices will rise for a fourth consecutive year this season. McNamara said, "Some of the things we did this year were on a first-time basis and we need, obviously, to study it a little bit and evaluate that situation going forward."

Reach Ferd Lewis at flewis@honoluluadvertiser.com.