Comcast, Big Ten Network Complete Long-Term Carriage Deal
Comcast and the Big Ten Network (BTN) Thursday formally announced that they have reached a long-term carriage deal across TV, broadband, and VOD platforms. Comcast will initially launch the net as part of expanded basic service in its Big Ten states beginning August 15. In Spring '09, Comcast may elect to move the net to the digital service level. Outside of the Big Ten footprint it serves, Comcast has the option to provide BTN on any level of service (Comcast). In Philadelphia, Bob Fernandez reports Comcast will pay about $0.70 per month per sub to carry BTN, and sources said that the deal is for seven to 10 years. BTN President Mark Silverman said that BTN now "would be available to more than two-thirds of the homes in the eight Big Ten states." Comcast will "not preview [BTN] in the Philadelphia area and will carry it right away in the digital tier" (PHILADELPHIA INQUIRER, 6/20). In N.Y., Richard Sandomir reports Comcast in August will begin paying monthly sub fees of about $0.60. Comcast Exec VP/Content Acquisition David Cohen: "We've ended with a compromise and accommodation that enables us to bring the content of [BTN] to many of our customers at a more affordable rate than what was proposed." Silverman declined to say if the Big Ten and Fox Cable Networks, the partners behind the channel, had "dropped its price as low as it could go" (N.Y. TIMES, 6/20).
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Silverman Comfortable With
BTN's Reach |
LIMITED FOOTPRINT: In Detroit, Tim Twentyman reports the deal leaves "close to 6 million homes in the Midwest without BTN," but network officials hope that the Comcast deal "might provide an outline for discussions with other carriers like Time Warner, Mediacom and Charter." Comcast does not have systems in Iowa (DETROIT NEWS, 6/20). In Columbus, Tim Feran reports only 40% of "Ohio households with cable and satellite service will have access" to BTN with the deal, compared to 89%, 83% and 79% in Indiana, Pennsylvania and Michigan, respectively (COLUMBUS DISPATCH, 6/20). Silverman: "We're still comfortable since the significant majority of homes in the Big 10 area will still be able to get the network." Silverman "wouldn't reveal the digital penetration threshold that would allow Comcast to move the net from expanded basic to digital, but he did define it as a 'significant majority.'" Comcast will offer BTN in HD as part of the deal (CABLEFAX DAILY, 6/20).
MOVING FORWARD: Fox National Cable Sports Networks President Bob Thompson said the agreement is a "good template going forward in discussions with other operators" (HOLLYWOOD REPORTER, 6/20). The PHILADELPHIA INQUIRER's Fernandez writes the Big Ten "needed to nail the deal with the giant Comcast to compel other cable companies to jump on board" (PHILADELPHIA INQUIRER, 6/20). Mediacom VP/Legal & Public Affairs Tom Larsen said, "I anticipate that it will mean the Big Ten Network's negotiating position with us is probably going to change. I would anticipate they would come back to us with a modified offer that may or may not be in line with Comcast's agreement" (DES MOINES REGISTER, 6/20).
PROGRAMMING: Silverman said that the BTN will "develop more original programming, including list- or rankings-based shows and programs similar to 'The Journey,' which chronicled" Univ. of Minnesota men's basketball coach Tubby Smith's first season at the school. But Silverman added that the "enhancements are natural for a second-year network and are not tied to the new revenue from the deal" (CHICAGO TRIBUNE, 6/20).
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