Chief expects deal to keep ESPN on Cox systems

LOS ANGELES (AP) -- The head of ESPN said Wednesday the sportsnetwork should be able to reach a deal to stay on Cox Communicationscable systems, despite heated negotiations.

Cable providers say the high price they pay for sports programminglike ESPN has contributed to rising home cable rates. ESPN countersthat its channel is one of the main reasons people subscribe tocable.

"I am optimistic we will reach an agreement," ESPN presidentGeorge Bodenheimer said during an annual investor conference in NewYork hosted by Credit Suisse First Boston.

The Walt Disney Co., which owns ESPN, also said at the conferenceit expects its troubled ABC television network to turn a profit by2005 and repeated earlier estimates of 30 percent earnings per sharegrowth at Disney in 2004.

Cox has been the most vocal major cable operator to complain aboutthe rising cost of sports programming. It has said it will not accepta renewal of its ESPN contract that includes 20 percent annual feeincreases. Its contract with ESPN expires in March. The dispute evenplayed out on the Internet, where the companies set up dueling Websites on the issue hoping to attract customer support.

Wednesday, Bodenheimer said ESPN is seeking rate hikes of lessthan 20 percent but would not provide further details.

ESPN previously said it was offering new deals that included lowerrate hikes in exchange for cable operators accepting other services,including high-definition, video-on-demand and broadband offerings.

Bodenheimer noted that Cox was the first major cable company toagree to pay extra fees to carry ESPN in high definition.

"If ESPN is that disastrous to their business, they have a funnyway of showing it," he said.