Comcast, BigTen Network near deal - sources
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NEW YORK, June 16 (Reuters) - Comcast Corp (CMCSA.O), the largest U.S. cable operator, is close to signing a carriage agreement with Big Ten Network, a college sports cable network, after nearly two years of negotiations, according to people close to the talks.
Under the plan, Comcast would carry a preview of the network in eight states with five million subscribers on its expanded basic tier from August, the people said.
The network could then be moved to a basic digital tier from next spring, with the flexibility for individual Comcast systems to offer the network to even more subscribers on a sports tier.
An agreement with Comcast, which has 24 million subscribers, would mean the Big Ten Network will be available nationally on cable for the first time.
It already has national carriage agreements with satellite TV operators DIRECTV Group (DTV.O) and DISH Network Corp (DISH.O) and several smaller regional cable operators.
Big Ten Network is a 10-month-old joint venture between News Corp's NWSa.N Fox Cable Networks and the Big Ten Conference and features sports such as basketball, football and baseball involving Big Ten member colleges like Ohio State and Michigan State.
Once signed, the deal would mean Big Ten Network would be available to more than 55 million subscribers around the country, up from about 30 million homes now. It also would lay the ground for talks with other big cable operators including Time Warner Cable (TWC.N) and Charter Communications CHTR.O.
An agreement between Big Ten and Comcast had been held up over the per-subscriber fee but the two companies pulled closer in recent months and have now agreed a fee of around 70 cents per subscriber, according to the people familiar with the talks.
Big Ten had originally asked for $1.10 per subscriber but Comcast declined.
Executives say cable agreements with a mainstream sports networks like Disney's (DIS.N) ESPN are usually around $3 per subscriber.
The new agreement will likely include rights to highlights of Big Ten games for video-on-demand and for transmission on the Comcast.net website.
A Big Ten Network spokeswoman said, "We remain close to reaching an agreement with Comcast."
College sports are favored by cable and satellite operators for the passion and loyalty by school alumni sports fans across the country betting they will translate into loyal subscribers.
Though many of the most popular games between big name schools have been available on broadcasters and general sports cable networks like ESPN for many years, more fans are turning to college-specific networks like Comcast and CSTV Network's The Mtn (MoutainWest Sports Network) to watch less mainstream sports like women's Olympics sports or men's volleyball. Continued...




