NFL Network Seeks Pay Hike
By R. Thomas Umstead 4/17/2006
Armed with a new eight-game Thursday and Saturday night package of National Football League games, NFL Network is looking to score significant increases in affiliate fees and subscribers before the regular season begins in September.
Negotiations are underway with both current affiliates and nonaffiliates on a new rate card that, according to operators, carries a whopping 125% rate increase and a mandate that the network be carried on well-penetrated expanded basic tiers in order to receive the live primetime games.
The 35 million-subscriber network pitched operators during the last week of March, in an effort to sign up as many distributors as possible before the league’s regular season kicks off 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 say the monthly rate card jumps from the current 20 cents to 25 cent range per subscriber to 50 cents to 75 cents including the live eight-game package. The fee also includes the channel’s on-demand fare.
Under the new deal, operators also have to place NFL Network on the high-penetrated expanded basic tier. Many distributors currently carry the service on a digital tier.
Sources close to the league say only 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.
NFL Network vice president of national accounts Brian Decker said operators like Comcast Corp. currently carrying the NFL Network have a “mechanism” by which they could pay a surcharge for the eight NFL Network games, but would not disclose specific costs.
Decker said the network is offering great value to distributors at a reasonable cost, well below traditional sports networks like ESPN.
“We are being very thoughtful with what we’re doing,” Decker said. “We’re not interested in starting another multi-sport network, but instead in being a network that serves our fans, our owners and our partners.”
NFL Network president Steve Bornstein said he’s confident the network will reach distribution deals before the games begin airing.
League officials say Sunday night games on ESPN have provided cable with its highest-rated programming since it debuted in 1987. “It’s always been about the most important programming in the U.S.,” Bornstein said. “I anticipate that most of our affiliates will see the quality and value of our programming.”
