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Al Jazeera English Channel Lacks U.S. Pay TV Carriage

Al Jazeera English reaped huge publicity, debuting Wed. with sometimes controversial coverage of an array of topics by high profile journalists. That hasn’t led to U.S. pay-TV carriage deals. Ties to the Arab-language edition, which runs video by terrorists and has been seen by U.S. officials as having an anti-American slant, hurts chances for American carriage, said industry officials, including Virtual Digital Cable (VDC) COO Scott Wolf. His company webcasts the channel.

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Most Americans can watch Al Jazeera English only online, via 2 streaming providers. VDC and JumpTV are alone in agreeing to stream video from the programmer to broadband subscribers. VDC subscribers doubled after it picked up the channel (CD Nov 16 p11). “It’s good for us in a sense, because we're the only place to get it” other than JumpTV, said Wolf. But Web distribution saps Al Jazeera English’s chances of persuading cable and DBS operators to carry it, George Washington U. Prof. Frank Sesno, a CNN correspondent, said: “There’s a difference between creating a buzz and having a sustained, meaningful, discernable footprint. Barring something that turns Al Jazeera into a cultural icon, they will be seen by fewer people in smaller doses.”

Al Jazeera English runs on GlobeCast at no charge to any satellite user, said Robert Marking, vp-communications & marketing for the satellite company. He estimates 500,000 people watch the network on GlobeCast. Its carriage deal differs from most, because channels usually are available only to subscribers and not free.

Five large cable and DBS companies we surveyed said they aren’t carrying the network. Some said they don’t plan to do so soon. Cablevision, Comcast and Time Warner Cable decided against carrying Al Jazeera English, officials said. Comcast talked with the network but never considered providing it nationwide, a spokeswoman said: “We had some preliminary discussions with them… Those discussions were for regional carriage.” Time Warner Cable has no “current plans” for a carriage deal, said a spokeswoman. Other cable operators didn’t return messages.

EchoStar is the only DBS company to carry Al Jazeera’s Arabic-language network, said industry officials. It’s not carrying the English-language channel, though “we would be willing to consider carriage of the English-language Al Jazeera,” a spokesman said. DirecTV has no plans to provide it, said a spokesman. Al Jazeera English said it can be seen in 80 million homes worldwide, more than twice the company’s original forecast. “Al Jazeera always gets a reaction, and the new English-language channel is no different,” it said. Company officials didn’t return messages seeking comment.

Pay-TV firms fear customers’ wrath if they carry the channel, said 3 industry officials. “They read the public perception as being against Al Jazeera, the organization,” Wolf said: “They feared a negative backlash from their customers if the channel was available.” Sesno agreed, saying: “I'm skeptical… where news is not the top ratings generator, where the parent channel is so badly perceived that this new Al Jazeera, living on the margins, is going to be able to become a news powerhouse.” There’s even confusion about Al Jazeera English’s name among cable and satellite officials. Many referred to the network as Al Jazeera International - a name it changed before the channel started programming.

The network probably could get cable distribution by paying for carriage, as other new programmers have done, said Mark Fratrik of TV station broker BIA Financial. Broader distribution is a key to Al Jazeera English’s success, he said: “You have to reach a critical scale to make sure you are operating at a level where you can reinvest in programming and so on… The bad publicity that any local cable system may get from carrying them may make it not a good business decision.” Negative publicity won’t necessarily prevent the channel from getting more distribution, Marking, speaking for himself and not his company, said: “It’s just a matter of time… before they strike their retransmission agreements.” - Jonathan Make, Josh Wein