Big Ten Network, Mediacom at impasse

ornryactor · Jul 17, 2007

From the IC Press-Citizen:

press-citizen.com | Sports

P-C said:
Negotiations between the Big Ten Network and Mediacom are at an impasse.

The Big Ten Network wants to be part of the basic or extended basic cable lineup. Mediacom would rather the new channel be offered as part of a sports tier that would be available at an additional cost.

"They see the value in the programming, but think it belongs on another level, where a consumer would have to make another investment," UI associate athletics director Rick Klatt said. "Our position is there's a quantity and quality to it that requires it be on basic."

Klatt spoke with reporters Monday to update them on how things are proceeding with the fledgling network, scheduled to go on-air Aug. 30.

There were plenty of chances to talk about some of the groundbreaking things the BTN is doing and the increased number of Hawkeye sports that will be on TV, but most of the interest surrounds one fact.

Is anyone going to be able to see it?

"There is an option out there," Klatt said, referring to DirecTV.
Aside from a bunch of small-town cable companies in the state, having DirecTV is the only way to get the BTN in Iowa. Mediacom, which services the most cable subscribers in the state, has not added the channel, nor has DISH Network.

"We deal with channel selections all the time," said Phyllis Peters, communications manager for Mediacom. "The Big Ten Network wants a certain business model. Maybe that's a model they can get, and maybe they have to be flexible."

Peters emphasized that negotiations are ongoing. However, the two sides have different views on the importance of the channel.

"We think the Big Ten Network has a lot to gain by distributing their product on our digital tier," Peters said. "The University of Iowa doesn't want to diminish its brand by fewer people seeing their teams. "But we have to balance the interests of the consumers we serve."

Klatt said that in Iowa, people should expect to get the Big Ten Network. After all, the BTN is expected to show four to five Hawkeye football games, 16 to 18 men's basketball games, five to six women's basketball games and three to five wrestling matches this season.

"Iowans are going to watch those programs," Klatt said. "I'm confident. I think the audience is going to be there. A big chunk of Iowans are willing to watch a big chunk of that programming."
Klatt showed that in recent years, more than half the TV sets in the Des Moines area are tuned to Iowa football when it is on TV, and about a quarter watch Iowa men's basketball when they play.
"It's justified to have this in Iowa for Iowans," Klatt said. "The interest in our athletic programs is strong. This is compelling programming."

Some think both sides are bunkering down for a battle like Mediacom had this past winter with the Sinclair Broadcast Group. Peters said the two situations are nothing alike.

"That was an industry fight," Peters said. "That's as different from channel selection as day from night."

Peters said it is also important to not lump Mediacom in with Comcast. The media giant (5.7 million subscribers in the eight states with Big Ten schools) is at loggerheads with the BTN over adding the channel to its basic tier instead of a premium tier, and has been a lot more vocal about it.

Comcast executive vice president David L. Cohen sent a letter to Big Ten commissioner Jim Delany in which he said the cable company would carry the network but not if it means sticking customers with "a burdensome Big Ten tax."

The Big Ten Network is asking for $1.10 per subscriber (in Big Ten states), a rate exceeded only by ESPN.

"They are in a very public battle with the Big Ten Network," Peters said of Comcast. "Their market is not the same as our market, and what they do is entirely different. We are not in an acrimonious situation at all."

At the same time, Mediacom hasn't given any indication it will give in by Aug. 30 just to make sure it can show three or four Iowa football games.

"If (the BTN) really wants their place on expanded basic, then maybe they can give on the price," Peters said. "We hope we can still work something out."

The BTN is asking Big Ten fans to let their cable companies know they want the network. They are also letting people know the BTN is definitely going to be on DirecTV.

"There is an option out there," Klatt said. "I hope it doesn't come to battle of our public university telling our people where to shop, what to do," Peters said. "We're taking the optimistic approach."

garn91 · Jul 17, 2007

Big 10 Network already doomed to fail?

I wouldn't be surprised to see the BTN suffer the same fate of the failed attempt by the Minnesota Twins at launching their own TV network a few years ago. That network folded only after 2 or 3 months on the air...big reason why, lack of carriage.

BTN isn't going to be able to survive on only DirecTV and a few "mom and pop", cable companies.

ornryactor · Jul 17, 2007

Re: Big 10 Network already doomed to fail?

I agree with you on that one.

I would actually like to see the BTN succeed. It'd be quite irritating in the short run, but it would provide a precedent for a successful conference network, and hopefully other major conferences could do the same thing down the road. Almost anything would be a step up from the Big 12's current "TexasTexasTexasTexasOklahomaTexasTexasTexas" package. I'm sure even Nebraska would benefit from something like that.

Buuuut, the fact of the matter remains- trying to take a fledgling channel and rank yourself right up there with ESPN is probably a bad idea, especially when the rest of the country doesn't give a crap about you, your conference, or your channel.

CyBobby · Jul 17, 2007