At Deadline …

Cable World, May 1, 2000

* ESPN was sending letters to affiliates at press time, alerting systems to rate increases that could go into effect around Aug. 1. By contract, ESPN has to notify its affiliates three months prior to the institution of a new rate. Sources said the hike of about 20 cents per month would push fees for the service to about $1.20 per month per subscriber. ESPN VP Ed Durso wouldn't discuss pricing specifics, other than to say the net increase would be about 10 cents per sub per month. Durso cited ESPN's overall brand positioning within the cable universe, its role in customer acquisition, as well as the estimated $500 million in local advertising revenue -- 20% of the industry's total -- it brings to the table in trumpeting the service's value and justifying the impending rate hike.

* Concurrent Computer Corp. has landed a commitment from Time Warner Cable to supply video-on-demand equipment through 2001. The terms were not disclosed, but the deal extends the relationship between TW and Concurrent, which has supplied VOD systems for the MSO's Oceanic Cable unit in Hawaii and in Tampa, Fla.

* Scientific-Atlanta Inc. posted Q3 earnings above estimates. The quarter, which ended March 31, saw a net income increase of 83%, helped by a surge of digital set-top box sales.

* Motorola Inc. has forged a deal with Time Warner Cable to sell 500,000 cable modems to the MSO in the next two years. Financial details were not disclosed, but it is estimated the deal is worth $125 million. TW also made Motorola its preferred supplier of cable modems.

* Drkoop.com has revised its ties with AOL Inc. and Walt Disney Co.-owned Go.com to save $100 million. The Web site sold back 3.5 million shares to AOL in lieu of payments for distributing its health info on AOL's service portal pages. Go.com will get $3.5 million from drkoop.com during the next six months.