September 22, 2006

NFL Network, big cost for the NFL?

In November, 2003, the National Football League launched its own flagship station, the NFL Network. At the time, their programming consisted of classic games, documentaries, and anything else you can think of, except live action. That has changed this year with the NFL placing 8 Thursday night and Saturday night games exclusively on the NFL Network. Up until this season, the NFL network has been a "product" for the league's "heavy users". Only the die-hard fans would pay the extra $5 - $10 a month to have a channel devoted to past NFL games.

The goal of the NFL and using their network as a marketing tool is to propel its young network into the main stream line-up of cable networks. Can this be done with the addition of 8 exclusive games on the NFL Network on Thursday and Saturday nights. Will fans pay, at minimum, $5 a month or $60 annually for 8 live games they can't see anywhere else. I agree with Richard Sandomir in his 9/19 NY Times Column "NFL Network is counting on Fans to Pay a Lot for a Little" when he says,
That is an astonishingly steep value to place on eight games, which will be simulcast on local stations in the teams markets, and an array of very good studio, news and archival programs. Still, that's 357 days without games.

Why wouldn't they sell the rights of these 8 games to another cable network and rake in the money similar to the deals they have with NBC, CBS, FOX, and ESPN. The NFL also has a broadcast agreement with DirecTV and their NFL Sunday Ticket package. Obviously, all of these networks would be interested in airing the special Thursday or Saturday games but the NFL wants to spread the games over many networks, in order to increase their profits. With that said, there are at least two networks, OLN and TNT, wanting to have rights to the 8 games airing on the NFL network, according to the NY Times article.

The NFL may have inadvertently ostracized its fans by placing 8 games exclusively on a premium cable network, not in the standard package like ESPN or Fox Sports Net. By looking to increase their revenue and popularity, they may in fact cause more damage instead. Many fans were angered about the move of Monday Night Football from its longitme home of ABC to partner company ESPN. Will the NFL's profits continue to rise or will this move be the final dagger with its fans? Only time will tell if the NFL may pushing its project too hard.

1 Comments:

Anonymous Anonymous said...

I tend to agree with you in that it was a mistake. i think over time it will show their greed will hurt them in the long run.

9/27/2006 6:17 PM

 

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