• by Wayne Friedman , November 2, 2010

Looking for a commercial on ESPN through Time Warner's new TV Everywhere effort? There aren't any -- right now, anyway.

Since its launch on Oct. 25, ESPN (www.ESPNNetworks.com) hasn't run any advertising for its programming. Instead, viewers see an ESPN logo. This is because ESPN's programming comes from its original cable network transmission -- and with that comes some complications.

"Due to rights differences online and on TV, our authenticated channels currently feature an animated logo during traditional commercial time," said an ESPN spokeswoman, in a statement to Media Daily News. "In the future, we expect to add commercials to the online versions of the networks, using the same system ESPN pioneered for live, dynamic commercial insertion on eSPN3.com."

Other networks have started up TV Everywhere efforts, where viewers need to authenticate/sign-in as cable subscribers, with Time Warner and Comcast. But virtually all have been though video-on-demand efforts -- not a live feed of cable networks.

Some of those networks include premium movie networks -- HBOGO on Comcast and Verizon and Epix on several cable operators -- as well as Discovery and Food Network on Comcast.

Almost all have been VOD-based offerings, where separate deals with right holders -- programming and advertising -- have been made. With ESPN's feed, the TV commercials were originally intended for traditional cable airing -- and sold to advertisers that way. ESPN3 is sold differently to advertisers -- separately -- intended for that specific digital platform.

Richard Greenfield, co-head of media and cable systems equities for BTIG Research, says in his blog: "Currently, there is NO advertising in the TV Everywhere model.... While initially investors may view this negatively as any viewing that shifts from traditional television to the broadband version of ESPN hurts ad revenues, we actually see it as a notable opportunity as authenticated streaming develops/matures."