Emmys May Move To Cable

HBO, which has wrested an increasing share of Emmy Awards away from broadcast networks, is negotiating for the ceremony itself, industry sources said Monday.

HBO's offer is for a lucrative, five-year deal beginning in 2003, sources said on condition of anonymity. Such a deal would move the 54-year-old primetime awards away from the big four networks - ABC, CBS, Fox and NBC - for the first time ever.

The Academy of Television Arts & Sciences has been in contract renewal talks with the four networks, which have aired the awards show in rotation for the last eight years.

But the networks balked at the academy's request for a $10 million annual license fee, industry sources said. The annual fee would be a sharp increase from the $3 million the academy was receiving.

HBO stepped in with its offer amid the dispute, sources said. Its proposal will be presented to the academy's board of governors Wednesday night, the sources said. The board must approve any agreement.

The networks, which had an exclusive bargaining window that the academy extended through mid-October, have the opportunity to counter HBO's bid collectively or individually.

Academy president Todd Leavitt, declining to comment on negotiation details, said the academy was in "the midst of a very sensitive process" that may or may not involve accepting the highest offer. And Bryce Zabel, academy chairman, said the academy is confident "the current negotiations will lead to a substantial improvement in our license fee" to expand academy activities.

Said HBO spokeswoman Nancy Lesser: "It is inappropriate for us to comment on the business of the television academy."

When the Emmys are a shared industry event "we all lay down our swords to celebrate television for one night each year," said CBS Spokesman Chris Ender. "But setting it up at one or several competing networks creates a competitive situation."

"If that's the case, CBS will counter-program the broadcast aggressively," Ender said.

Calls to ABC, Fox and NBC seeking comment were not immediately returned.

The networks are expected to argue that a non-network ceremony would instantly cut out the 16 percent of Americans, or 43 million people, who don't have cable or satellite service. But the premium channel likely would make the ceremony available to non-subscribers and possibly other AOL Time-Warner sister channels such as TNT, a source said.

HBO would also face the possibility of aggressive network counter-programming, which was common before broadcasters agreed to share the ceremony, insiders noted.

In the last few years, HBO has grabbed a slew of top Emmy trophies, including awards for "The Sopranos," "Sex and the City" and this year, best miniseries for "Band of Brothers."

Cable channels used to honor their own with the CableACE Awards, but those were discontinued after 1997 because of the increasing success of HBO and other channels at the Emmy Awards.

By Lynn Elber