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Time Warner vs. NFL Network

With Time Warner Acquiring Insight Cable NFL Expands NFL Network Coverage

INDIANAPOLIS, IN - FEBRUARY 05:  Commissioner of the National Football League Roger Goodell talks during the trophy presentation after Super Bowl XLVI at Lucas Oil Stadium on February 5, 2012 in Indianapolis, Indiana.  (Photo by Elsa/Getty Images)

If you have Insight Cable, most likely you enjoy flipping through the channels (with your favorite Bruce Springsteen song playing in the background) and when you realize that there's nothing on, you settle on the NFL Network. Some just head there immediately, understanding the futility that most television sucks so why waste time searching for something when you know eventually you'll settle on the NFL Network as your "hot read". Thursday night games are available to you, whereas most of the country frustratingly flirts with insanity because the illegal streams are choppy before they're finally taken offline, turning a simple quest to one that even Frodo could sympathize with you.

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Deal Unlikely This Year Between The NFL And Time Warner

DALLAS TX - FEBRUARY 03:  NFL Network sportscaster Rich Eisen attends a press conference where Ndamukong Suh #90 of the Detroit Lions was awarded Pepsi's 2010 NFL Rookie of the Year Award at the Super Bowl XLV media center on February 3 2011 in Dallas Texas. The Green Bay Packers will play the Pittsburgh Steelers in Super Bowl XLV on February 6 2011 at Cowboys Stadium in Arlington Texas.  (Photo by Scott Halleran/Getty Images)

Twice during the month of September, reports surfaced that much progress was being made between the NFL and Time Warner to put NFL Network and Time Warner Cable's digital tier, rather than the more cost specific sports tier. This led some to speculate that Time Warner would have the NFL Network before the season's first Thursday night broadcast between the Oakland Raiders and San Diego Chargers on November 10.

The growing optimism for a deal between the NFL and Time Warner was fun for a little while. Now it's over.

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Updating The Time Warner And NFL Network File

DALLAS TX - FEBRUARY 5: General view of the NFL Network set as Rich Eisen Michael Irvin Rod Woodson and Steve Young (from left) chat prior to the announcement of the 2011 Pro Football Hall of Fame class at the Super Bowl XLV media center on February 5 2011 in Dallas Texas. (Photo by Joe Robbins/Getty Images)

Early August reports surfaced that the NFL Network may be available to Time Warner customers by the start of the 2011 season with Jim Kiesewetter of the Cincinnati Enquirer writing that "Time Warner could reach an agreement with the NFL Network before the season starts Sept. 8." It's five days before the season starts and there's still no known agreement between the network and one of the nation's largest cable providers.

We wanted to update that file.

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The NFL Gets Another Assist by the Government

There's several issues with the government -- like how they apply their laws (or force their influence, on trivial things, on our daily lives) -- that I passionately disagree with; weighing in on media distributions with a business (NFL) that's allowed to practice within a monopoly, and the exemptions that favor the NFL in terms of the television contracts, seems to be a waste of time for our government.

The FCC (who's more stiff than Frazier's ex-wife Lilith) recently ruled that Comcast MUST carry the NFL Network based on a certain price, through their digital tier. A quick history. Comcast carried the NFL Network on their Digital Tier (starting in early November in 2006) until they decided to move it to their sports tier in early August, 2007. The NFL took Comcast to court, which favored Comcast. The appeals process lasted until this week, which favored the NFL Network, forcing Comcast to carry the NFL Network back to the digital tier.

I've watched the NFL Network, and to this day, other than the live NFL games, I've little seen little benefit for it (and perhaps I'm better off that I don't have to listen to Warren Sapp speak out of his ass... thank god Inside the NFL went to Showtime). I rarely watch football programming during the week -- unless it's a game -- so I'm well aware I'm in the minority, and in the end, it doesn't matter to me personally. But I'm just one. Then again, I wouldn't mind having the abbreviated replays on the Network.

On the other hand, I find it ridiculously hypocritical that one satellite provider is exclusively allowed to carry the NFL Ticket, while a significant majority of the NFL population is blacked out. The fact that people in other countries (like Iran) can watch more NFL games than I, in a given week, is appalling. Like many of you, I stick it to them, watching NFL games, on internet broadcasting sites (god, I love the internet). The crazy thing is that I'd gladly pay for the NFL Ticket, so think of the money they're losing. And I'm just one. And no, based on idiot regulations and policies, I can't switch to a satellite.

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Is there a compromise between the NFL Network and Time Warner?

There might be a compromise between the NFL Network and Time Warner. Let me say that again. There might be a compromise between the NFL Network and Time Warner. And the benefits to all of us, might be quick. Like sometime next week quick.

National Football League Commissioner Roger Goodell on Thursday offered a new proposal to Time Warner Cable in an effort to break the logjam over the issue of carrying the NFL Network on expanded basic cable.

In a letter to Glenn A. Britt, president and CEO of Time Warner Cable, Goodell said the league would be willing to let a third party determine the price and tier for NFL Network distribution on Time Warner systems. In addition, Goodell said he would be willing to let Time Warner carry the network immediately, assuming Britt agrees to the third-party arbitration.

The offer, Goodell said, is good through Dec. 28. That date is important. On Dec. 29, the New England Patriots, seeking a perfect season, will meet the New York (Giants) in the final regular-season game. That game has taken on importance because the Patriots appear headed for a perfect season.

Were they pressured?

Sen. Patrick Leahy, D-Vt., and Sen. Arlen Specter, R-Pa., expressed concern that many fans in their home states will not be able to see games on the channel involving the New England Patriots or the Pittsburgh Steelers.

Leahy is the committee's chairman, and Specter is its ranking member.

"Now that the NFL is adopting strategies to limit distribution of game programming to their own networks," they wrote, "Congress may need to reexamine the need and desirability of their continued exemption from the Nation's antitrust laws."

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The NFL Network/NFL Sunday Ticket vs. Cable Stalemate is Stale

Take this perspective. When the NFL Network tells you that Time Warner is preventing you from seeing their games and 24x7 coverage, do they really think you're that stupid? It is, after all, their ridiculous assertion that taking the games away from all but 35 million households (of which only 1.6 million subscribe) is Time Warner's fault -- not the network that journeyed the games to Rivendale where no one else can find it, unless it wants to be found. The Big Ten Network is taking the same approach. And each time I'm told that both networks are being prevented from reaching their target audience, I laugh. If these networks weren't created, the games wouldn't be broadcasted on those channels. Simple as that. Don't take us for fools.

"Cable companies swim in a multi-billion dollar tower of gold coins." Both networks are just as greedy establishing channels to increase revenue for their respective product. If the cable companies are greedy, then the networks aren't? They're the victims? Furthermore, if Oprah created her own channel, would you be willing to pay for that general increase on your bill for basic? Or would you agree it should be on a digital tier that you would have to pay for to receive so the cost isn't spread out among all cable subscribers?

"Cable companies could absorb the costs and not charge anyone." The first question that has to be asked is do you run a business? Furthermore, take the Oprah hypothetical -- because obviously you'll be more willing to pay for the NFL Network if you were the CEO of cable company-A. The NFL is demanding between 50-75 cents per-subscriber while the Big Ten Network is asking for a full dollar per-subscriber. For comparison, ESPN charges $3.26 per customer -- "by far the highest rate of any U.S. basic cable channel."

Currently, the NFL receives $712.5 million per year from Fox to air NFC games. CBS is paying $622.5 million a year to air AFC games. Between the two networks, that's $8 billion that will paid through 2011. DirectTV, with exclusive rights to air the games of both networks, paid $3.5 billion for the NFL Sunday Ticket package. Now, we're up to $11.5 billion. NBC is paying $650 million per year on a contract that runs through 2012 for Sunday Night football. ESPN is paying $1.1 billion a year through 2014 for Monday Night football games. [Source: ESPN]

All television contracts added up, that's $3.785 billion per year that the NFL receives. Talk about greedy. The Cable companies pay service, InDemand, had offered a bid for NFL Sunday Ticket in 2002 before an agreement was reached for an extension between the NFL and DirectTV. The Cable Companies didn't care for exclusive rights, they just wanted to broadcast it. The cable companies missed the deadline and the league reupped with DirectTV.

Note: The Super Bowl produced $336 million in revenue.[Source: Forbes]

So what does the NFL suggest to you, the viewer that wants the NFL Network, but can't have it because their near $4 billion revenue on television contracts just isn't enough? They are urging you to cancel cable and get satellite. Yep. That's how low and panicked they are now. Jerry Jones threatens more games will be aired exclusively through the NFL Network. Even Congress is being asked to intervene. Mommy is being asked to settle another dispute.

"I'm talking to various markets and asking them to cancel out Comcast, cancel out Time Warner and go with the other people," Jones, who chairs the NFL owners' TV committee, said during a news conference here. "I think it will be very effective."

Representatives of Comcast and Time Warner Cable disagreed.

"We don't think any of our customers will disconnect just because Jerry Jones tells them to do so," says Maureen Huff, a spokeswoman for Time Warner Cable, which does not carry the channel. She also says most customers believe the NFL created problems for viewers by taking eight games from over-the-air TV and using them to build its channel.

Gregg Easterbrook notes the NFL's hypocrisy:

Reader Scott Larson of Grand Rapids, Mich., notes that after the NFL owners meeting last week, commissioner Roger Goodell complained, "We have some great games that are going to be on, and some [viewers] won't be able to see them because the cable operators are not distributing them." Reader Steve Lucianetti notes that after the same meeting -- called to help the owners strategize about the refusal of Time-Warner and Cablevision to carry the NFL Network -- Jerry Jones, owner of the Cowboys, complained the cable companies "depend on privileges at the government level, and they shouldn't use those privileges to keep fans from being able to see the NFL."

The doublespeak here is rich. The NFL restricts its magnificent Sunday Ticket product, which enables viewers to choose for themselves which game to watch, to the lucky few who get the satellite service DirecTV. Millions of homes cannot receive DirecTV for technical reasons or can pull in the signal only after expensive special installations. Frank Hawkins, the NFL's chief negotiator for television contracts, told me that when he lived in Virginia, his home could not receive DirecTV until he had a tall metal pole installed in his backyard. Yet although the NFL won't let anyone in the U.S. except DirecTV subscribers watch Sunday Ticket, the league is furious that Time-Warner and Cablevision won't buy the NFL Network and Comcast will buy the NFL Network for its premium sports tier only. The NFL wants NFLN on every basic cable system, which was the path to success for ESPN and CNN. A war of words has broken out, in which the NFL is denouncing the cable carriers in consumer-rights language while asking that Congress intervene to force the NFL Network onto basic cable. The cable carriers are firing back, accusing the NFL of all manner of perfidy. Meanwhile, 35 million households already get the NFL Network, while only 1.6 million get Sunday Ticket -- and the consumer's barriers to Sunday Ticket are much higher than the barriers to the NFL Network.

Easterbrook concludes:

Meanwhile, there's the cell phone factor. Some cable executives contend there is little point in chasing Sunday Ticket because all the people who want the service already have migrated to DirecTV. Sure -- all the people who want it at $250 a year, plus bundled charges, plus the hassle of installing and maintaining a satellite dish. If Sunday Ticket were $50 a year and came hassle-free through cable or any other hassle-free electronic pipeline that might evolve, instead of 1.6 million households getting Sunday Ticket, 25 million might sign up. Then consumer costs would be lower but business revenues higher -- $1.3 billion instead of $400 million in that example -- and what was once a luxury for the privileged few could be possessed affordably by almost anyone. Just like what happened with cell phones! Come on NFL, let us choose which game to watch. We'll pay, you'll be richer and you can stop speaking out of both sides of your mouth, demanding public access to the NFL Network while restricting public access to Sunday Ticket.

Note: Combined, Time Warner and Comcast reported $68.5 billion in revenue in 2006. Time Warner ($43.6 billion in 2006) Comcast ($24.9 billion in 2006).

So basically, with all that said, nothing has changed in the past three years.

Cable Plays Hardball With the N.F.L. [NY Times]
Of Tiers, Football and Dollars [NY Times]

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The Big Ten Debutes

What do you get when leagues start grossly overestimating the interest from the public? You have the NFL Network and Time Warner unable to broadcast to some customers because compromise is only a word that sits idle and alone in the Oxford Dictionary. ESPNU, the network that aired last year's Crosstown shootout blacking out a majority of Cincinnatians from cheering on their respective home town teams, was an inconvenience, but they are now on Time Warner.

When we heard that the Big Ten will have their own network, you almost had the feeling that this exact thing would happen. Time Warner, holding onto their guns, will only put the network on their digital sports tier, rather than basic, so people that want the channel, pay for the channel. Not the other way around.

As Ohio State fans with Time Warner, we'll miss out on four games this year (Youngstown State and Akron and possibly Northwestern and Kent State). The SEC could be following suit next season and the Pac-10 and ACC are considering.

"If you look at programming costs of cable operators, 25 percent of their programming costs are for two channels, ESPN and Fox Sports Networks," said Derek Baine, a media analyst for the research firm SNL Kagan. "Most people have 100 channels, and a quarter of your bill is from two sports channels whether you watch them or not.

"So of course cable companies are going to try to push these new sports channels to tiers, which isn't a big deal for a rabid fan willing to pay $20 more per month. But it makes the business model difficult for networks not on expanded basic."

Boy, I can't wait until we're paying $3,000 per month because regular network programming will be a thing of the past.

Buckeyes blacked out [Enquirer]

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Big Ten Network / Time Warner and ESPNU Come to an Agreement

First it was the NFL Network refusing to come to terms with Time Warner leaving millions and millions of football fans in the dark during their national games; unless it was in the home market. Then it was ESPNU that blocked out the Crosstown Shootout (UC vs. Xavier) in Cincinnati. Now it's the Big Ten Network that has Ohio State fans concerned that they'll miss some college football games this season.

This is the new trend in sports broadcasting. You have to pay for sports specific channel to get fulfill the addictive coverage of our respective sports. The demands the channels are asking for isn't falling in line with mea-companies like Time Warner.

However, as per this article, ESPNU and Time Warner came to an agreement. The launch date is TBD.

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