Toronto’s Alliance Atlantis Communications and CBS have sold the second-window U.S. broadcast rights for CSI: Miami to A&E Television Networks. From October 2004 to October 2006, A&E has acquired the right to air one episode of the highly rated series per week, with standard syndication conditions applying. AAC estimates the full value of the deal could exceed US$230 million, with a reported tag price of approximately US$1.2 million per episode.

‘The licensing of these U.S. second-window rights for CSI: Miami clearly demonstrates that our ownership position in the CSI franchise will be an important contributor to Alliance Atlantis’s earnings, free cash flow and debt reduction targets,’ says Judson Martin, senior executive VP and CFO of Alliance Atlantis, in a statement.

Adam Shine, a financial analyst with National Bank Financial is equally bullish.’I think it is fair to say that lightning has struck twice at AAC with this franchise,’ he says. ‘These high sums in strip syndication are quite significant and goes to the strength of the franchise…We were happy to see the price per episode was closer to US$1.2 million versus the more conservative $1 million that we had assumed in our numbers.’

The original CSI: Crime Scene Investigation series sale to TNN: The National Network in April 2001 is said to be the highest per price episode for use by a cable broadcast in a second-window capacity in the history of cable television.

‘We certainly didn’t expect them to get the $1.6-million record sum that was achieved a couple of years ago in a different time and place, but obviously the strong strip sale to A&E…from Alliance Atlantis’ perspective provides them with very strong earnings visibility going forward,’ says Shine

AAC and CBS, CSI’s originating network, will split the worldwide revenues down the middle, after third-part profit participation, and have retained the right to license CSI: Miami for further weekend distribution within the September 2006 to 2008 time period. A&E has acquired the right to air the first eight seasons of the series except on weekends.

Shine says AAC will begin see the strip syndication revenues for the original CSI/TNN deal on its balance sheets come September 2004.

-www.allianceatlantis.com