This boggles the mind
http://sports.espn.go.com/espn/page2/story...mp;lid=tab4pos1
The Football Gods Chortled: Startup NFL Network has concluded its first slate of NFL broadcasts, and "clang" is the sports term for what happened. Four of the five NFLN Thursday games were total duds, among the season's least interesting contests, culminating in the Green Bay 9, Minnesota 7 snore-fest the Thursday before Christmas. (Minnesota recorded 104 yards of offense, while the Packers lit it up for three field goals in Brett Favre's Interim Final Semifinal appearance.) Of 20 quarters NFLN aired on Thursday nights, only one, the fourth quarter of San Francisco at Seattle, was watchable -- and even those who get NFL Network likely switched that contest off when it was a drowsy 7-3 at the end of the third. Saturday night fare wasn't much better.
That 70s Show
Fox
Their re-runs draw about the same as NFL Network, and cost $1 billion less.
Embroiled in controversy with the big cable carriers, most of which haven't put NFLN on basic cable, NFL Network had gambled that outraged football enthusiasts would deluge the cable carriers with complaints after hearing about the fabulous games they missed. Instead none of the games were worth calling anyone about, unless you had an immediate family member in the starting lineup. NFL Network managed the dubious distinction of producing the lowest-ever modern ratings for National Football League broadcasts. According to Nielsen Media Research, just 2.4 million people watched Browns-Steelers or Chiefs-Raiders on NFLN -- the kind of numbers generated by syndicated reruns of "That '70s Show." The NFL's highest-ranked in-house telecasts drew barely a third the average audience for a "Monday Night Football" telecast. "NFL Network stopped for no gain" was the headline on the Wall Street Journal's analysis of NFLN's first season.
The reason most major cable carriers won't put NFL Network on basic is the league's asking price of roughly $8 per household per year. That is Tiffany by the standards of cable, where most channels charge perhaps $1 per household per year to the carrier or give themselves away gratis, with the channel's only income being advertising. (If most cable channels weren't inexpensive or free to the carrier, there would not be 100 channels on basic.) Only a handful of cable products, prominently ESPN, have managed to charge more than a couple bucks per household per year, and ESPN broadcasts live game programming every day, not once in a blue moon as with NFLN. In the pricing fight, NFL Network argued that its handful of live games are so incredibly valuable, they justified NFLN becoming one of the most expensive video products ever to enter the American home. Then the football gods made the NFL Network games practically worthless!
Was this just bad luck -- or are the football gods trying to warn the NFL away from the excitement-reducing effect of in-house broadcasting? If NFLN actually got its asking price of $8 per household per year for basic cable, that could have brought nearly $1 billion annually in rights fees to the league. Instead NFL Network's first-year rights fees from the few carriers that put NFLN on basic cable, plus from satellite carriers and cable companies that offered NFLN on a premium sports tier, was believed to be in the area of $100 million. Meanwhile the league left on the table the roughly $400 million Comcast bid to air the Thursday and Saturday night games on its sports channel. Comcast's offer was a stunning sum -- about $50 million per game, far more than CBS, Fox or NBC pay for NFL rights and close to the breathtaking $65 million per game ESPN pays for "Monday Night Football." Instead by airing the telecasts itself, the NFL settled for around $12 million per game. Had the Thursday and Saturday games been sold to Comcast, each NFL owner would have received a check this season for roughly $10 million; instead, figuring what NFLN earned minus its cost for producing the telecasts, each NFL owner might expect a check in the zone of $2-4 million. That's a substantial difference, especially for small-market teams that are sensitive to revenue swings.
Perhaps in the future, NFLN will earn more than the league could have realized by selling the Thursday and Saturday night rights; many successful enterprises initially seemed like bad ideas. But in the first season at least, NFL Network was a huge letdown to the NFL -- plus a warning sign that there might be, in fact, a saturation point for public interest in pro football. Several influential NFL owners, prominently Pat Bowlen of Denver, have been arguing that broadcasting NFL games is a license to print money, and therefore the league should do all the telecasting and keep all proceeds. As Park Avenue (NFL headquarters) is discovering, the broadcast business is more treacherous financially than it might seem. One of the benefits to the National Football League, or any sports league, of selling game rights to ESPN or other established networks is that those networks assume the risk of market vacillations: The league receives a fixed payment regardless of whether games are exciting or popular. When the NFL airs its own games, it assumes the risk. In 2006, the NFL lost its in-house broadcasting gamble -- the first television-sector defeat by the league since the early 1960s.
Note: In the final NFL Network broadcast, Jersey/A at Washington, NFLN ran a dozen "house ads," or ads for itself. The spots fairly begged viewers to call their cable carriers and demand NFL Network. It's nice to know that even the mighty National Football League needs public opinion on its side. But the ads urging you to call your cable carriers and complain about not getting NFL Network were seen only by viewers who already got NFL Network! TMQ wondered if NFLN was running so many "house ads" because it hadn't been able to sell the time to regular advertising customers.
Local Affiliates Update: For the final Sunday, Park Avenue allowed both CBS and Fox to show two games, the league's first double-doubleheader. With the NBC night game, that meant five NFL contests on television on New Year's Eve, most ever for a single day. There was only one game Sunday, Jacksonville at Kansas City, pairing teams that both had to win to remain alive for the playoffs -- and despite the unprecedented five-game slate, that game was not on in the Washington, D.C., area, where TMQ lurks. There was only one other game that paired two teams with winning records, New England at Tennessee -- and that game was not shown in Washington, D.C., either. And still the league refuses to allow most of America to subscribe to NFL Sunday Ticket! Thanks to Fox, at least, for switching from the Atlanta-Philadelphia woofer to the fascinating second half and overtime of San Francisco at Denver.
http://sports.espn.go.com/espn/page2/story...mp;lid=tab4pos1
The Football Gods Chortled: Startup NFL Network has concluded its first slate of NFL broadcasts, and "clang" is the sports term for what happened. Four of the five NFLN Thursday games were total duds, among the season's least interesting contests, culminating in the Green Bay 9, Minnesota 7 snore-fest the Thursday before Christmas. (Minnesota recorded 104 yards of offense, while the Packers lit it up for three field goals in Brett Favre's Interim Final Semifinal appearance.) Of 20 quarters NFLN aired on Thursday nights, only one, the fourth quarter of San Francisco at Seattle, was watchable -- and even those who get NFL Network likely switched that contest off when it was a drowsy 7-3 at the end of the third. Saturday night fare wasn't much better.
That 70s Show
Fox
Their re-runs draw about the same as NFL Network, and cost $1 billion less.
Embroiled in controversy with the big cable carriers, most of which haven't put NFLN on basic cable, NFL Network had gambled that outraged football enthusiasts would deluge the cable carriers with complaints after hearing about the fabulous games they missed. Instead none of the games were worth calling anyone about, unless you had an immediate family member in the starting lineup. NFL Network managed the dubious distinction of producing the lowest-ever modern ratings for National Football League broadcasts. According to Nielsen Media Research, just 2.4 million people watched Browns-Steelers or Chiefs-Raiders on NFLN -- the kind of numbers generated by syndicated reruns of "That '70s Show." The NFL's highest-ranked in-house telecasts drew barely a third the average audience for a "Monday Night Football" telecast. "NFL Network stopped for no gain" was the headline on the Wall Street Journal's analysis of NFLN's first season.
The reason most major cable carriers won't put NFL Network on basic is the league's asking price of roughly $8 per household per year. That is Tiffany by the standards of cable, where most channels charge perhaps $1 per household per year to the carrier or give themselves away gratis, with the channel's only income being advertising. (If most cable channels weren't inexpensive or free to the carrier, there would not be 100 channels on basic.) Only a handful of cable products, prominently ESPN, have managed to charge more than a couple bucks per household per year, and ESPN broadcasts live game programming every day, not once in a blue moon as with NFLN. In the pricing fight, NFL Network argued that its handful of live games are so incredibly valuable, they justified NFLN becoming one of the most expensive video products ever to enter the American home. Then the football gods made the NFL Network games practically worthless!
Was this just bad luck -- or are the football gods trying to warn the NFL away from the excitement-reducing effect of in-house broadcasting? If NFLN actually got its asking price of $8 per household per year for basic cable, that could have brought nearly $1 billion annually in rights fees to the league. Instead NFL Network's first-year rights fees from the few carriers that put NFLN on basic cable, plus from satellite carriers and cable companies that offered NFLN on a premium sports tier, was believed to be in the area of $100 million. Meanwhile the league left on the table the roughly $400 million Comcast bid to air the Thursday and Saturday night games on its sports channel. Comcast's offer was a stunning sum -- about $50 million per game, far more than CBS, Fox or NBC pay for NFL rights and close to the breathtaking $65 million per game ESPN pays for "Monday Night Football." Instead by airing the telecasts itself, the NFL settled for around $12 million per game. Had the Thursday and Saturday games been sold to Comcast, each NFL owner would have received a check this season for roughly $10 million; instead, figuring what NFLN earned minus its cost for producing the telecasts, each NFL owner might expect a check in the zone of $2-4 million. That's a substantial difference, especially for small-market teams that are sensitive to revenue swings.
Perhaps in the future, NFLN will earn more than the league could have realized by selling the Thursday and Saturday night rights; many successful enterprises initially seemed like bad ideas. But in the first season at least, NFL Network was a huge letdown to the NFL -- plus a warning sign that there might be, in fact, a saturation point for public interest in pro football. Several influential NFL owners, prominently Pat Bowlen of Denver, have been arguing that broadcasting NFL games is a license to print money, and therefore the league should do all the telecasting and keep all proceeds. As Park Avenue (NFL headquarters) is discovering, the broadcast business is more treacherous financially than it might seem. One of the benefits to the National Football League, or any sports league, of selling game rights to ESPN or other established networks is that those networks assume the risk of market vacillations: The league receives a fixed payment regardless of whether games are exciting or popular. When the NFL airs its own games, it assumes the risk. In 2006, the NFL lost its in-house broadcasting gamble -- the first television-sector defeat by the league since the early 1960s.
Note: In the final NFL Network broadcast, Jersey/A at Washington, NFLN ran a dozen "house ads," or ads for itself. The spots fairly begged viewers to call their cable carriers and demand NFL Network. It's nice to know that even the mighty National Football League needs public opinion on its side. But the ads urging you to call your cable carriers and complain about not getting NFL Network were seen only by viewers who already got NFL Network! TMQ wondered if NFLN was running so many "house ads" because it hadn't been able to sell the time to regular advertising customers.
Local Affiliates Update: For the final Sunday, Park Avenue allowed both CBS and Fox to show two games, the league's first double-doubleheader. With the NBC night game, that meant five NFL contests on television on New Year's Eve, most ever for a single day. There was only one game Sunday, Jacksonville at Kansas City, pairing teams that both had to win to remain alive for the playoffs -- and despite the unprecedented five-game slate, that game was not on in the Washington, D.C., area, where TMQ lurks. There was only one other game that paired two teams with winning records, New England at Tennessee -- and that game was not shown in Washington, D.C., either. And still the league refuses to allow most of America to subscribe to NFL Sunday Ticket! Thanks to Fox, at least, for switching from the Atlanta-Philadelphia woofer to the fascinating second half and overtime of San Francisco at Denver.
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