Network, Local Cable Companies Negotiating

By Mark Wogenrich, The Morning Call, Allentown, Pa.

Aug. 23–With a week until its launch, the Big Ten Network continues to have "productive negotiations" with local cable companies Service Electric and RCN but has reached an impasse with Comcast, a network spokesman said Wednesday.

"I don’t think we’re close to deals, but we’re having good, productive talks," said Mike Vest, media relations manager for the Big Ten Network. "We don’t expect a deal with Comcast by the launch, but everyone else is moving forward."

The Big Ten Network, which begins broadcasting next Friday, is scheduled to carry 39 Big Ten football games this fall, including at least three Penn State games. Two already are scheduled for the network: the Sept. 1 season-opener against Florida International and the Sept. 15 game against Buffalo. At least one conference game involving Penn State will be broadcast on the network as well.

Currently, the Big Ten Network has contracts with about 100 cable operators, located primarily in the Midwest, and satellite provider DirecTV. A Service Electric representative said Wednesday that company continues to negotiate but its position remains the same: The Big Ten Network is better suited to a sports tier placement rather than expanded basic, which the network wants.

Lynne Buening, head of programming for Virginia-based RCN, said the company remains in "active discussions" with the Big Ten Network. "We clearly have found a path that we’re optimistic with, and hopefully we’re working toward a successful conclusion," she said.

The network’s placement in cable packages and its price per customer have been the primary negotiation points throughout the summer. Discussions between Comcast and the network broke down because of the placement issue, Vest said. Comcast wants the channel placed on its subscription-based sports tier along with the NFL Network, NBA TV, Golf Channel, CSTV and several Fox Sports outlets. Big Ten Network officials are firm about the channel being placed on expanded basic.

Jeff Alexander, vice president of public relations for Comcast’s Eastern Division, said his company still is talking with the Big Ten Network but remains firm on the sports tier placement. He added that Comcast’s "first priority is to protect our customers from the excessive demands of the Big Ten."

"Our position is simply to give customers a choice," Alexander said. "By adding the Big Ten Network to the sports tier, we avoid having to pass these high costs on to all customers. This would allow Big Ten fans to subscribe to a sports package if they so choose, while the majority of our customers would not be burdened with a $13 [the estimated annual cost per customer] Big Ten Network tax."

Buening added that the expanding nature of sports programming is playing a role in the negotiation.

"Our biggest concern is, enough is enough," she said. "If you’re a sports fan, you can’t live without this. Sports fans are dedicated to their desires, so they’re very vocal. But the ratings [of sports programming] don’t reflect the challenges that are coming from these negotiations."

The popularity of Penn State football has made Pennsylvania a focal point for the network. Big Ten commissioner Jim Delany visited Harrisburg this summer to meet with members of the Penn State Legislative Forum. Earlier this month, Penn State President Graham Spanier lobbied on behalf of the Big Ten Network in a letter to state lawmakers.

"Consumers typically receive 60-70 channels in their expanded basic level of service that are not selected by them but by their cable operator," Spanier wrote. "If consumers could choose the networks they prefer, we believe many Pennsylvania viewers would select the Big Ten Network over a dozen or more other networks their cable operator has selected for them already.

"Since the cable industry insists on bundling a large number of channels together and charging one fee for them, networks with a heightened degree of local relevance such as the Big Ten Network rightfully should be included in that group."

Said Alexander, "We want to make this programming available to those fans who want it without burdening those customers who don’t."

The debate continues even in State College. On Wednesday, the Big Ten Network and D&E Communications announced an agreement to carry the channel on the operator’s State College and Lewisburg systems. The network also has an agreement with Penn State campus cable, which reaches most student dorms and lounges.

But the bulk of the football team will not receive the Big Ten Network at home. Most football players live in Nittany Apartments, which is served by Comcast.

mark.wogenrich@mcall.com

610-820-6588

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