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Levi Maaia   


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Play Fair, NFL
January 5, 2007

For a football fan, the NFL Network might sound like a dream come true. All football, all the time. Why then can’t football fans in many cable markets buy the NFL Network separately from expanded-basic cable? The NFL is trying to do an end run around sports tiers and be in every cable-subscribing home, whether the individual subscriber wants them or not. The NFL will not allow cable operators to launch the NFL Network on anything but the most highly penetrated program tier -- analog basic cable. For nearly all operators, this is a technical and financial challenge.

Consumers clearly want a model more like á la carte programming. While this goal may be idealistic but impractical for many reasons, cable and its partnering network programmers should be looking at giving consumers more choices, not less. Force-feeding niche cable sports programming will only stir even more consumer contempt toward cable.

Through very slick marketing, the NFL Network has attempted to pit subscribers against their cable companies by making it appear that cable operators are depriving them of incredible sports content available on satellite. In our little corner of Rhode Island, this marketing has been less than effective.

Full Channel has received inquiries about the NFL Network from less than 0.01% of the subscriber base. In dealing directly with the customers who have contacted us, I have found that they are largely unaware of what the NFL Network really is. Some think they will see every football game in the country for free. Others think they are missing games that used to be available on other networks.

After explaining the situation to a typical customer touching on the facts that: “There are only eight live games on the network, and the NFL wants your cable bill to go up at least 70 cents monthly,” nearly all of our subscribers have stayed with Full Channel even though our Atlanta-based MSO overbuilder (Cox Communications) carries the network.

Through a targeted marketing campaign (see SportsChoiceNow.org) the American Cable Association, the voice of the nation’s independent cable operators, has pushed hard on the NFL, demanding reasonable treatment for all cable systems, big and small. So far, the NFL has thrown its weight around, ridiculed the little guy and ignored the larger issues.

The NFL has been nothing short of unreasonable with their demands. As reported in the press, the NFL is asking for nearly 70 cents from each analog basic subscriber. Like most small operators, Full Channel doesn’t have 70 cents extra per subscriber to send to the NFL.

If added, the NFL’s fee would come directly from every subscriber’s pocketbook. By refusing the NFL Network’s demands, we, along with other independent operators, are making a concerted effort to control rapidly inflating cable TV rates. As long as programmers continue to tie the hands of cable operators, consumers will have more and more reasons to turn away from cable and toward online-based video-on-demand and other alternative content delivery methods, hurting both cable operators and network programmers equally.


Posted by on January 5, 2007 | Comments (6)


January 6, 2007
In response to: Play Fair, NFL
Ricardo Anselmo commented:

I live in an NFL market that use to carry the NFL Network before its purchase by Time Warner. Time Warner would love the NFL Network on a sports tier for those subscribers willing to pay for it. The NFL Network took full page ads out confusing cable subscribers into thinking that they would be missing something. Our local team, The Buffalo Bills, were not one of the eight games so people didn't care. Now that the NFL regular season is over, any interest is now gone. NFL is burning their bridges with this type of take our way or no way attitude. In conclusion, no one cares about the NFL Network now.




January 8, 2007
In response to: Play Fair, NFL
Dan commented:

Charging 2 cents a day to get a year-round channel dedicated to football seems quite reasonable. Isn't the real issue here that the cable companies themselves don't own the NFL channel and therefore they don't want the competition for their own? It always seems that if the cable company owns it, it gets distributed broadly with no problem. But an independent channel like the NFL's suffers despite being a very popular entertainment form for Americans.




January 8, 2007
In response to: Play Fair, NFL
Levi commented:

I would guess that most independent operators like Full Channel believe more live sports content is a great idea. It is the NFL's analog-basic-only model that is a bad idea. The NFL Network is exactly the type of channel that belongs on a sports tier. There is no "competition" for our "own" programming as Dan stated above. "Our own" programming doesn't exist. Independent cable operators don't have any ownership in competing major cable sports networks. Nearly all of us would simply like the freedom to offer niche programming like the NFL Network to customers who want it, without forcing the expense of it on folks who don't. Secondly, the rate is more realistically explained as $1+ per game NOT 2 cents per day. Football has a very short season and the NFL's rate is highly inflated given the actual amount of live sporting event coverage.




July 24, 2007
In response to: Play Fair, NFL
Joe commented:

After talking with the NFL Network, how about $1.00 per sub not 70 cents.




August 31, 2007
In response to: Play Fair, NFL
Les commented:

I work for a cable company. This is the way it worked for us. We were originally just going to put NFL Network on our digital sports tier and obviously just charge those customers that were willing to pay for it. This would have affected only about 9000 total analog subscribers. The digital penetration is only around 10% so only around 900 digital subscribers are affected. If you figure that only 10% of the digital subscribers even take the sports tier then we are talking only 90 subscribers would actually pay for the NFL Network. NFL said no way and said if you want to carry NFL Network then you have to pass 80% of your total suscriber base in all systems. OK, were a small MSO with 40 communities which total around 20,000 subs. 80% of that is 16,000 subs and we had to put NFL Network on analog instead of digital to achieve these numbers. As stated above, we are being charged somewhere around 90 cents to a $1 a sub per month. Originally, if you take the expected 90 subs on digital times $1 a sub you're talking $90 per month times 12 months = $1080 per year that we would pay for NFL Network. In reality the actual amount became 16000 subs times $1 a month per sub times 12 months = $192,000. I'm sure $192,000 per year looks a lot better to the NFL than $1080 per year and yes we passed the cost increase to our entire subscriber base by raising rates. Granted we weren't forced to take the NFL Network but we were feeling pressure from our subscriber base and as you may recall NFL Network had a $15 million ad campaign that told potential customers that if your cable company does not carry NFL Network then dump then and switch to Direct TV. In a time when the FCC is pushing to go all digital and a la carte, the option available to us from NFL Network was to put NFL on analog and charge everyone by raising rates to cover the cost of adding the $192,000 per channel. The FCC needs to get programmers in line first before by making contract negotiations much more reasonable than by setting its sights on cable companies.




October 3, 2007
In response to: Play Fair, NFL
plko commented:

i love it





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