--Cablevision, NFL Network sign multiyear carriage agreement
--Deal brings network to more New York-area residents
--Pact leaves Time Warner Cable as lone holdout among major
pay-TV operators
(Updates with comment from Time Warner Cable in paragraph
six.)
By William Launder
Cablevision Systems Corp. (CVC) has struck a multiyear deal with
the National Football League to carry its NFL Network and NFL
RedZone channels, adding some of the most highly valued sports
content to Cablevision's lineup in time for the upcoming football
season.
Financial terms weren't disclosed.
The deal further solidifies the NFL's position as a must-have
independent sports network for cable operators--at a time when
bigger sports networks like Walt Disney Co.'s (DIS) ESPN typically
command an outsized share of viewers, advertising dollars and
subscriber fees.
Sports programming is an attractive asset for broadcasters and
their advertisers because it is typically watched or listened to in
real time by a loyal base of male fans, who tend to be big consumer
spenders but can be hard to reach for advertisers.
The agreement also gets the NFL Network deeper into the New York
market, where the majority of Cablevision's subscribers are
located. Of the nine top pay-TV distributors, only Time Warner
Cable Inc. (TWC)--another big operator in New York City--doesn't
carry the channels. The two sides have been close to an agreement
in the past.
A spokesman for Time Warner Cable said the company remains in
discussions with the NFL to carry the channels.
Despite the NFL's popularity--NBC's Sunday Night Football was
the most-watched show during the last TV season--the NFL Network
has struggled since its launch in 2003 to get carried by pay-TV
distributors. The two sides have clashed over subscriber fees and
whether the channel should be part of subscribers' basic or premium
packages, among other items.
Cablevision, in particular, has complained about the NFL's
decision to offer the Sunday Ticket--which allows subscribers to
watch every NFL game--only through DirecTV (DTV) and not other
pay-TV distributors.
The NFL Network, in a move designed to increase the pressure on
those pay-TV distributors holding out, began showing a select
number of live games in 2006, mostly on Thursday night. This year,
the NFL Network expanded its regular-season schedule and will
broadcast 13 games, starting with the Chicago Bears visiting the
Green Bay Packers on Sept. 13.
The NFL Network will become available to Cablevision subscribers
on Friday, and NFL Redzone will air throughout the football season
on Sundays. NFL RedZone switches to different NFL games, presenting
highlights as well as live coverage when a team gets inside the
20-yard line.
Cablevision shares recently slid 1.4% to $15.16.
Write to William Launder at william.launder@dowjones.com
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