NFL to Simulcast Patriots-Giants Game on CBS, NBC
Move Eases Battle Between Comcast, Time Warner and NFL
By Steve Donohue -- Multichannel News, 12/26/2007 8:46:00 AM
Ending a fierce battle with cable TV operators over distribution of the Dec. 29 New England Patriots – New York Giants Game, the NFL said late Wednesday that it will broadcast the historic game on CBS and NBC in addition to NFL Network.
The NFL had been battling for weeks with Comcast, Time Warner Cable and other cable TV operators that refused to cough up license fees to carry NFL Network, which has exclusive rights to the game. Until the NBC and CBS simulcast was announced, tens of millions of cable TV subscribers would not have been able to view the game.
“We have taken this extraordinary step because it is in the best interest of our fans,” NFL commissioner Roger Goodell said in Wednesday’s announcement. “What we have seen for the past year is a very strong consumer demand for NFL Network. We appreciate CBS and NBC delivering the NFL Network telecast on Saturday night to the broad audience that deserves to see this potentially historic game. Our commitment to the NFL Network is stronger than ever.”
The NFL had faced pressure from Sen. John Kerry (D-Mass.) and other legislators that wanted the league to distribute the Patriots game on broadcast TV. Kerry applauded the NFL’s decision to simulcast the Patriots game on NBC and CBS.
“With today’s announcement, the NFL showed their loyalty to the sports fans who made the NFL an empire in the first place,” Kerry said in a statement. “The best news of all is that now no die hard Pats fans will be shut out from watching their team take aim at football history. I want to commend NFL executives for delivering for fans everywhere. What a great gift the day after Christmas.”
The league’s agreement to simulcast the game is a huge victory for Comcast, Time Warner Cable and other cable TV operators that wanted to distribute NFL Network on a sports tier, maintaining that all cable TV subscribers shouldn’t be forced to pay for sports programming.
DirecTV, AT&T and Verizon have run ad campaigns in recent weeks touting their distribution of NFL Network.The simulcast takes the punch out of the ad campaigns from the cable TV rivals since all cable operators that distribute CBS and NBC in their basic-cable TV tiers will have the big game.
NFL spokesman Seth Palansky indicated that pay-TV distributors of the NFL Network would not receive a license fee rebate as a result of having to share the Pats-Giants telecast with two national broadcast networks in every TV market except New York and Boston.
The simulcast will hurt ratings for local TV stations in the New York and Boston markets that had licensed the game. The NFL distributes games distributed on NFL Network to broadcasters in the local markets featured in its Thursday and Saturday games.
Stations that had licensed the Patriots-Giants game before the simulcast agreement was reached are News Corp.’s WWOR-TV in New York, Boston ABC affiliate WCVB-TV and ABC affiliate WMUR-TV in Manchester, N.H.
NFL spokesman Seth Palansky said the local stations will still air the game, even though it will also be aired nationwide by all CBS and NBC affiliates.
The NFL said Saturday’s game will be the first three-network simulcast in NFL history and the first simulcast of any kind of an NFL game since Super Bowl I in 1967 when CBS and NBC both televised the first meeting of the champions of the newly merged NFL and American Football League.
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NFL Network is NOT free. No cable channel is free. On the other hand, cable or DBS carriers choose to "subsidize" a particular cable channel . . . because they have a financial interest in delivering that channel to the broadest possible market to lure advertisers, which has a multiplier effect to the channel's bottom line.
Cable companies have been subsidizing their own channel for years. Just take a look @ the ownership of channels on the basic lineup. CNN? USA? TNT? TBS? Doesn't take a rocket scientist to figure out why certain channels are delivered "free" to basic cable customers while others are not. It's all about ad revenue folks.
NFL Network is an upstart network but unlike other upstarts like FOOD, HGTV, SPEED in that it's programming has the opportunity to generate large advertising dollars, but only if it accessible to a broad market rather than a narrow premium tier. Sure, DirecTV is a "partner" investor with NFL Network. So what? What about Comcast SportsNet? Is that delivered "free" to Comcast customers? Of course.
Bottom line, each are playing the same game of protecting their own investment, but also need to be sensitive to the preferences of their subscribers. The MSO's can choose to "subsidize" carriage of the NFL Network on their basic tier if they so choose, rather than claim it's too expensive & would result in a pass-through increase of basic cable rates. To me, that's a crock. If that were truly the case, I think we'd woulda seen ESPN pushed to a premiem tier a long time ago. JMO.
jay cable - 12/27/2007 2:28:00 PM EST -
No one is "entitled" to NFL network. In response to those who question why the NFL is "FREE" on Direct TV but the cable companies are saying they have to charge a ridiculous rate....do your homework....NFL Network is owned by/in partnership with, Direct TV. Of course it''s "free" to themselves! Then they turn around and hold their NFL network ransom from their comptetitors, the cable companies. They want ridiculous prices to be paid to them from all their competitors'' customers, including asking congress to force it, and when that doesn''t work (because it''s a free coountry), they run smear campaigns saying switch to Direct TV. It''s a win-win for themselves! Think about your own businesses: Wouldn''t it be great if you could force your comptetitors'' customers to buy something you sell every time they buy from your comptetitor, and if they won''t, just convince them to switch to buying everything from you?! If Direct TV and the NFL win this one, BEWARE! It will set a bad precedent for all sports everywhere and soon no sports will be on free tv or basic cable.
Sandy-football fan too - 12/27/2007 10:51:00 AM EST -
It constantly amazes me how many misinformed consumers are out there! Now, I can understand one sticking to their convictions, but come on... wake up! These days it seems there is this big attack on cable companies (those mean and nasty monopolies that take advantage of consumers). It would appear the consumer is unaware of where the increasing costs of services come from. The NFL and BIG10 have given perfect examples. Let’s just boil it down to this:
The NFL argues that cable companies are using their “power†to exclude upstarts like the NFL Network. Cable companies will carry their own (included in the bottom line/ low operating and per subscriber costs) channel on a basic their, but not poor old defenseless NFL. Where this is ironic is the NFL has tried to use its clout to convince Congress and the FCC to step in and arbitrate and essentially force those mean old MSOs to carry the Network. When that didn’t work, they started running ad campaigns telling the consumer to “drop your cable provider and switch†(to someone who isn’t challenging their business practices).
Cable companies are saying: We will (or do) carry your programming; however at $0.70 per subscriber per month, you’ll be on a sports tier. One that will cost the truly interested fan(atic) about $6 - $7 a month, which will include the added perks of sports programming from the NBA, MLS, MLB, FSN, & Collegiate Sports. Accept this or a Pay-per-view service (of which NFL will receive all profits) or simply offer your programming to the public (as you have for the past 75 years) for free. Another nugget of irony; the NFL’s answer was not only “NO WAY!†but added to its ignorance by letting fans know they could see these “exclusive match-ups†at NFL.com for only $9.95 per month.
For me, this needs no further explanation. This is a HUGE win for the cable companies and the consumer. It’s just a shame that it’s not over. Although, I hope it is a step in the right direction.
A big football fan - 12/27/2007 10:16:00 AM EST -
CABLE CUSTOMERS - 1
NFL - 0
Customers win! Yeah!
George W. - 12/27/2007 8:01:00 AM EST -
If the Petty Officer feels he is entitled to watch sports, that' fine let him pay for it. If he thinks he's getting "anything" for free any of the other providers he needs to read this about the 700 Million dollars they paid for NFL Ticket, (((Currently, DirecTV has an exclusive deal with the NFL, making them the sole provider of NFL Sunday Ticket in the United States until the contract expires in 2010, though past history suggests DirecTV will renew the contract by then in order to maintain one of its key marketing pitches to potential subscribers. [1] Prior to the NFL's latest television deal, other satellite and cable providers were allowed to bid on the rights to carry NFL Sunday Ticket if they agreed to carry the NFL Network. However, DirecTV still won exclusivity for the package, bidding over $700 million a year to do so.
Due to limited bandwidth on DirecTV's satellites, DirecTV drops the HD feed for TNT on Sundays to open up more room for NFL telecasts in HD. DirecTV also drops PPV programming, NewsMix, SportsMix and the Kids Mix Channels, however DirecTV restores these services after the Sunday games are over. It is rumored that some of NewsCorp's foreign satellite companies, such as BSkyB, may offer NFL Sunday Ticket within the next couple of years.)))
which he can bet his next years salary that the cost is being passed on to every subscriber they have. Comcast on the other hand feels that if you want it you pay, if you do NOT want to watch grown mem pay games for more money than many of us will see in ten lifetimes you do NOT pay! End of story
John Drake - 12/27/2007 7:32:00 AM EST
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