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PPV: Movie Revenue Up, Events Down

Movies and adult product helped to push pay-per-view revenues beyond the $2
billion mark in 2001, but the PPV-event category continued to struggle due to a
lack of major boxing events, according to Showtime Event Television's annual
PPV-revenue study, released Monday.

PPV movies in 2001 generated a record $1.3 billion in revenues for the
industry, while the adult category garnered $545 million, up from its previous
high of $465 million in 2000, SET executives said.

An increase in digital-cable homes to 15.2 million in 2001 from 8.8 million
in 2000 helped to push cable's overall PPV-household penetration beyond the 50
million mark, Showtime Networks Inc. senior vice president of research Kim Lemon

The PPV-event category, however, continued to post disappointing revenues in
2001. PPV events generated $297 million last year, well short of the $395
million set in 2000 and the $486 million garnered in 1999.

Revenue for both boxing and wrestling events was down in 2001, Lemon said,
adding that both categories may continue to experience revenue losses in 2002
without an influx of marquee events.

One event that could significantly boost PPV-event revenue -- the proposed
April 6 Mike Tyson-Lennox Lewis heavyweight-championship fight -- is still up in
the air.

Showtime executive vice president of corporate strategy and communications
Mark Greenberg said fight co-promoters Home Box Office PPV and SET are
entertaining offers from a number of venues eager to host the event, but no
deals have been reached.

Las Vegas pulled out of the running last week after the Nevada Athletic
Commission denied Tyson a boxing license.