Key Issues
The NFL Network’s
Unreasonable Carriage Proposal
is Bad Business for Texas Cable Customers.
FACT: It is the NFL owners who decided to yank 8 NFL games from free broadcast television - and place them on a network that it owns.
- If the NFL really cares about fans, why did it take games off free broadcast television?
- Even if an agreement is reached, “antenna only” Texans - roughly 20% - still will not be able to see games outside of the team’s viewing area.
- A recent Houston Chronicle headline sums this up best: “The NFL tackles its own fans.”
FACT: The NFL Network business plan is failing so it is seeking inappropriate government intervention as a resolution.
- NFL commissioner Roger Goodell projected last year that the Network would have 50-60 million subscribers by now, but it is falling well short of this estimate.
The NFL is now running to the government to solve the business dilemma of a very expensive and poorly rated network.
- First, the NFL wanted the FCC to mandate arbitration – the FCC declined to do so at a hearing on November 27th.
- Now, since its fate is not looking good at the federal level , the NFL is coming to the Texas Legislature in a desperate attempt to mandate carriage on basic cable.
FACT: The NFL Network costs too much and provides too little value.
- The Network provides about 24 hours per year of live NFL football and about 8,736 hours of filler.
- The NFL wants an average of 80 cents per cable subscriber per month, according to media consulting firm SNL Kagan, making it the fifth most expensive cable channel among 159.
- The Network ranks 54th out of 69 cable networks monitored by Nielsen.
Moreover, the NFL games are not guaranteed to stay on the NFL Network.
FACT: Mandated carriage would result in skyrocketing prices.
- The escalating cost of sports programming is one of the leading causes of cable rate increases.
- The USA Today characterized the NFL Network’s plan as “pick-pocketing.”
FACT: The answer is commercial negotiations and consumer choice. The sooner the NFL Network realizes this,
the sooner a real solution can be achieved.
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