Bschneider
08-05-2006, 09:33 AM
NFL ratchets up battle with cable
By SHARON GINN, Times Staff Writer
Published August 4, 2006
http://www.sptimes.com/2006/08/04/B..._up_battl.shtml (http://www.sptimes.com/2006/08/04/B..._up_battl.shtml)
A few months ago, the NFL Network was advising football fans to call their cable company. Now? The network is spending $100-million on advertising to more forcefully make its case.
Ads began appearing across the nation this week as the NFL Network launched an attack on cable companies - most notably Time Warner and one of its subsidiaries, Bright House - that do not offer the 3-year-old network to subscribers. Bright House is the dominant provider of programming in the Tampa Bay area, serving more than 1-million customers.
Local newspaper ads feature a closeup of Jon Gruden delivering one of his trademark penetrating stares (a somewhat misleading tactic because the Bucs are not among the teams scheduled for the eight live games that will air this season on the network). The copy reads: "Don't let Brighthouse ruin your football season. You'll miss NFL games. Call and demand NFL Network now."
Will "demanding" help? Hard to say, as it appears the parties are at an impasse, one that may last beyond Thanksgiving, when the first live game airs.
The negotiations are undoubtedly complex, but the main sticking point appears to be that Time Warner will sign a deal only if it can offset the cost of carrying the network by making it part of its "sports tier," a premium package that costs subscribers an additional monthly fee. The NFL Network, spokesman Seth Palansky said, would not accept such an agreement for Time Warner and does not have one with any of more than 100 cable or phone companies that do carry it. It wants to be made available to basic cable subscribers, period.
"We don't feel cable bills should go up any more or these fans should be burdened with these additional costs because they're passionate about football," he said.
Bright House is stuck in the middle, as parent Time Warner negotiates on its behalf for new programming. Striking its own deal with the NFL Network is not an option, Bright House spokesman Joe Durkin said.
"I strongly believe we're putting forth the best effort we can for those who are strongly interested in it," Durkin said. "I can't stress enough, our customers are not going to miss a single Bucs (game) or the NFL playoffs or the Super Bowl."
Time Warner has launched a Web site, www.NFLgetreal.com (http://www.nflgetreal.com/), as a way to make its case directly to its subscribers.
Meantime, Palansky noted that Wednesday, Time Warner reported profits of $1-billion for the second quarter. So it's not as if the company is hurting, Palansky said.
He also said that in exchange for paying the fees to the NFL Network, Bright House and Time Warner will have the opportunity to sell ads that will generate revenue for the cable companies, including ad time during the eight live NFL games.
The NFL Network won a small victory Thursday when the Federal Communications Commission ruled that Time Warner needed to reinstate the NFL Network at least for several weeks on Adelphia systems that it took control of Monday as part of a long-planned acquisition. (Adelphia customers in Citrus County were not affected because their service was turned over to Comcast, which carries the NFL Network.)
Meantime it's hard to picture - at least in the short term - a victory for the viewer. Not everyone wants to attach a satellite dish to his home or has access to smaller companies such as Verizon that carry the network. And how many would be willing to make the effort to switch is in question. Durkin said thus far "not a significant number" of Bright House subscribers have called to complain.
Palansky thinks that will change once more subscribers become aware of what they are missing. At 200-million strong last year, the NFL viewership, he said, "is certainly not a niche audience."
By SHARON GINN, Times Staff Writer
Published August 4, 2006
http://www.sptimes.com/2006/08/04/B..._up_battl.shtml (http://www.sptimes.com/2006/08/04/B..._up_battl.shtml)
A few months ago, the NFL Network was advising football fans to call their cable company. Now? The network is spending $100-million on advertising to more forcefully make its case.
Ads began appearing across the nation this week as the NFL Network launched an attack on cable companies - most notably Time Warner and one of its subsidiaries, Bright House - that do not offer the 3-year-old network to subscribers. Bright House is the dominant provider of programming in the Tampa Bay area, serving more than 1-million customers.
Local newspaper ads feature a closeup of Jon Gruden delivering one of his trademark penetrating stares (a somewhat misleading tactic because the Bucs are not among the teams scheduled for the eight live games that will air this season on the network). The copy reads: "Don't let Brighthouse ruin your football season. You'll miss NFL games. Call and demand NFL Network now."
Will "demanding" help? Hard to say, as it appears the parties are at an impasse, one that may last beyond Thanksgiving, when the first live game airs.
The negotiations are undoubtedly complex, but the main sticking point appears to be that Time Warner will sign a deal only if it can offset the cost of carrying the network by making it part of its "sports tier," a premium package that costs subscribers an additional monthly fee. The NFL Network, spokesman Seth Palansky said, would not accept such an agreement for Time Warner and does not have one with any of more than 100 cable or phone companies that do carry it. It wants to be made available to basic cable subscribers, period.
"We don't feel cable bills should go up any more or these fans should be burdened with these additional costs because they're passionate about football," he said.
Bright House is stuck in the middle, as parent Time Warner negotiates on its behalf for new programming. Striking its own deal with the NFL Network is not an option, Bright House spokesman Joe Durkin said.
"I strongly believe we're putting forth the best effort we can for those who are strongly interested in it," Durkin said. "I can't stress enough, our customers are not going to miss a single Bucs (game) or the NFL playoffs or the Super Bowl."
Time Warner has launched a Web site, www.NFLgetreal.com (http://www.nflgetreal.com/), as a way to make its case directly to its subscribers.
Meantime, Palansky noted that Wednesday, Time Warner reported profits of $1-billion for the second quarter. So it's not as if the company is hurting, Palansky said.
He also said that in exchange for paying the fees to the NFL Network, Bright House and Time Warner will have the opportunity to sell ads that will generate revenue for the cable companies, including ad time during the eight live NFL games.
The NFL Network won a small victory Thursday when the Federal Communications Commission ruled that Time Warner needed to reinstate the NFL Network at least for several weeks on Adelphia systems that it took control of Monday as part of a long-planned acquisition. (Adelphia customers in Citrus County were not affected because their service was turned over to Comcast, which carries the NFL Network.)
Meantime it's hard to picture - at least in the short term - a victory for the viewer. Not everyone wants to attach a satellite dish to his home or has access to smaller companies such as Verizon that carry the network. And how many would be willing to make the effort to switch is in question. Durkin said thus far "not a significant number" of Bright House subscribers have called to complain.
Palansky thinks that will change once more subscribers become aware of what they are missing. At 200-million strong last year, the NFL viewership, he said, "is certainly not a niche audience."