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October 23, 2007
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NFL Network Responds To Time Warner's Offer To Carry Games

NFL Network responded negatively to Time Warner Cable’s offer to show the channel’s eight NFL games on a pay-per-view basis, with the NFL collecting all the revenues.  In a letter sent to Time Warner Senior Exec VP Rob Marcus late Monday afternoon, NFL Network President & CEO Steve Bornstein called the offer a “gimmick,” a “non-starter” and “unacceptable to the NFL as a matter of television policy, which has never included pay-per-view telecasts.”  Time Warner, however, viewed the offer as “no different than when the NFL entered into an agreement to offer out of market games exclusively over DirecTV.”  The offer surprised NFL execs, who said they had not heard from Time Warner for several weeks.  “Unfortunately, it seems that TWC’s content acquisition department cannot grasp that the NFL Network is more than eight NFL games,” Bornstein wrote.  “During discussions with Commissioner Goodell last winter and spring, TWC’s executive management seemed to grasp these essential points … For whatever reason, now that TWC’s executive management is no longer directly involved TWC seems to have changed its tune.” 

DOUBLE STANDARD? In the letter, Bornstein also referenced SportsNet New York, a network in which Time Warner Cable holds a stake. “TWC’s ‘cherry-picking’ the games telecast by NFL Network is a non-starter for us, just as ‘cherry-picking’ only the Mets games telecast on SportsNet New York (which TWC and Comcast jointly own) would be a non-starter for TWC and Comcast -- both of which carry that channel on analog in New York and insist that other cable carriers do so as well.”  TWC called the insinuation that its affiliated networks get preferential treatment “absurd.” “This is about the price and value of the network,” a spokesperson said. “While these eight games might garner good ratings, it’s important to remember that this programming comprises less than 30 hours out of their 8,760 programming hours per year. Ask the NFL about their ratings for any or all of those other hours."

ARE OWNERS UNHAPPY? Responding to reports that say NFL owners are not happy with the lack of distribution for NFL Network, NFL Network COO Kim Williams said, "That's all crap. I've never seen a more committed group of people than I have in the owners. The owners did not take these decisions lightly. They don't dip their toe in the water. This was a long-term play." William said NFL Network is making money and is not a loss leader. "It would make my job a lot more difficult and a whole lot less fun if the people who pay me weren't pleased with the progress of a pretty significant asset that allows them to do a lot of things that they wouldn't otherwise be able to do. ... I'm not worried about them pulling the plug on the NFL Network. It makes money. They love it."  


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