NFL Network Seeks Pay Hike

By R. Thomas Umstead
MultiChannel News

4/17/2006 6:08:00 AM

http://www.multichannel.com/article/CA6325097.html


Armed with a new eight-game Thursday- and Saturday-night National Football 
League package, NFL Network is looking to score significant increases in 
affiliate fees and subscribers before the regular season begins in September.

Negotiations are under way with current affiliates of the channel and 
nonaffiliates on a new rate card that operators said carries a whopping 
125% rate increase and a mandate that the network be carried on 
well-penetrated expanded-basic tiers if operators are to receive the live 
games.

The 35 million-subscriber network pitched operators the last week of March 
in an effort to sign up as many distributors as possible before the 
league's regular season begins in September, individuals close to the 
network said.

Most current affiliation deals do not include the $300 million eight-game 
package, which begins Thanksgiving night.

Operators with knowledge of the deal said the rate card jumps from the 
current 20 cents to 25 cents per subscriber to 50-75 cents, including the 
live eight-game package. The fee also includes the channel's popular 
on-demand fare.

Sources close to the league said only direct-broadcast satellite provider 
DirecTV Inc. -- which has exclusive rights to the league's "NFL Sunday 
Ticket" out-of-market package -- has officially signed on to carry the live 
games. The channel is on its "Total Choice" basic package.

NFL officials would not comment on the matter and DirecTV officials could 
not be reached for comment at press time.

NFL Network vice president of national accounts Brian Decker said operators 
like Comcast Corp. that are currently carrying the network have a 
"mechanism" by which they could pay a surcharge for the eight games, but he 
would not disclose specific costs. He added that the network is offering 
great value to distributors at a reasonable cost, well below traditional 
sports networks like ESPN.

NFL Network president Steve Bornstein said he's confident that the network 
will reach distribution deals before the games begin airing.

And network spokesman Seth Palansky cautioned operators that waiting too 
long to reach an agreement could lead even higher fees.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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