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December 15, 2011 @ 1:00 AM
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NFL Scores Multiple Broadcast Deals

The NFL, arguably the most powerful television property in the country, signed a handful of deals with CBS, Fox and NBC this week that will keep the popular sports programming on broadcast TV for a long time to come. While specific terms of the deals were undisclosed, reports are saying the broadcast networks will pay on average an increase of 65% to air NFL games throughout the duration.

Sources close to negotiations say Fox will pay an average of $1.1B per year for its NFC package which includes many of the league's largest markets. CBS will pay close to $1B per year for its AFC package (details below), and NBC will spend about $950M per year for its Sunday Night prime-time package and other games.

In no particular order, here's a breakdown of each deal:

• CBS: The league awarded CBS a nine-year agreement through 2022 in which CBS Sports will remain the broadcast home of the NFL's AFC. CBS will also have access to certain NFC games as part of the NFL's expanded "flex" schedule (the first time CBS will air games from both conferences in the same year). The deal also gives CBS broadcast rights to the Super Bowl in 2013, 2016, 2019 and 2022.

• Fox: Fox's deal, also through 2022, allows the network to continue as the broadcast home of the league's NFC. Fox has access to certain AFC games per the league's "flex" schedule as well, with broadcast rights to the Super Bowl in 2014, 2017 and 2020.

• NBC: NBCU's deal goes through 2022 and includes more content and games, notably NBC's annual Thanksgiving game for the duration of the contract. NBC also received "upgraded" coverage to include a divisional playoff game and broadcast rights to the Super Bowl in 2015, 2018 and 2021.

In September, the NFL inked an 8-year, $15.2B extension with Disney's ESPN for Monday Night Football. That deal, which includes additional rights (likely a wildcard playoff game) represented an estimated 73% increase over its previous deal.

Initial response was thus: NBCU CEO Steve Burke said, "We couldn't be more pleased." Fox Sports Chair David Hill said, "The NFL is the greatest television property in the world and we are thrilled that it remains a cornerstone of Fox for the next decade." CBS CEO Les Moonves said, "no other franchise delivers ratings the way an NFL game does."

In other sports related news, the NBA swished a multi-year marketing deal to make Sprint the official wireless service partner for the league. •
ACA Wants Encryption Rules Parity

Cable operators want to encrypt their basic tiers, but the costs to do so make it difficult for smaller independent companies. That's why the ACA is urging the FCC to tweak its proposed encryption conditions to provide better consumer protection measures and minimize unique cost burdens to the independent cable industry.

ACA President and CEO Matt Polka said that while the FCC's proposed rules may be fine for large and mid-sized operators, for independent companies they would impose such high costs that encryption would be more burden than boon. "By adding some flexibility to its rules to take into account the different circumstances faced by smaller operators, the FCC can ensure that the benefits of basic tier encryption are available to all operators, not just the larger ones," he said.

At issue for the ACA is that, despite the FCC's allowance for all-digital cable systems to encrypt basic tiers voluntarily, certain consumer safeguards come with "disproportionate" costs that make encryption less attractive to large operators. One of those conditions is the FCC's desire for cable to provide free STBs to subs who only pay for basic service - a stipulation that would undoubtedly affect small operators more adversely than large companies.

The ACA said one way the FCC can mitigate the disparity is to reduce the timeframe during which small ops must forgo charging for the set-tops and allowing independent companies to use the cheapest STBs possible (read: refurbished) to meet the requirement. Polka said such policy revisions should be applied to small operators that have 400,000 subs or less. •
Etc.: Huge Players in SOPA Debate - Battle for Broadband - Carrier IQ's Latest

Rules & Regs: Spectrum legislation passed the House Tuesday on a 234-193 vote split largely along party lines. Observers say if the debate on the House floor is any indication, the JOBS Act (and the larger legislation it is part of) has no chance of passing the Democratic-controlled Senate. Sen. Majority Leader Harry Reid (D-NV) called it "dead on arrival." --- Senior House Republican Darrell Issa (R-CA) says SOPA is doomed unless "a number of problems are resolved." CNET details the who's who of SOPA's opposition (Google, Facebook, Twitter, human and civil rights groups everywhere) and what the bill intends to do.  Politico chimes in saying eBay, HuffPost, NYT and the Wash Post also blast the legislation. On the other side of the debate sits Time Warner, Viacom, Disney, News Corp., Sony and the NFL. NYT has big media's side of the debate. --- After years of opposition, it seems the CEA has changed its position on internet sales tax. The country's largest CE org didn't come out in support of any specific legislation, but it did say the internet is no longer an infant and universal sales taxes will help all retailers, regardless of size, operate on an even playing field. PC World has the story.

Research: Bernstein Research released its latest projections for the future of broadband with some interesting figures, including: As of Q311, there are ~77.5M broadband subs in the U.S. and the firm expects the wired broadband market to expand from ~65% penetration to 73% of U.S. HHs by 2015. The firm says cable's share will increase to 67.7% by 2015 and 69.6% by 2020; while DSL's share will drop from 28.2% to just 8.8% by 2020. Meanwhile, FiOS will rise from 6% to 7.9% and U-verse from 4.7% to 10.1%. --- Strategy Analytics says AppleTV will control almost one-third of the market for streaming-media players in 2011 (including its own rivals such as Roku and Boxee). The consoles are used in 8% of U.S. and 7% of European HHs with sales expected to reach 12M this year.

Strategy: Bright House Networks signed a deal with Verizon FiOS, Comcast Spotlight and Viamedia to form an advertising interconnect in Tampa Bay. The agreement, which will cover ~80% of TV HHs in the market, will begin in 2012. (Viamedia sells ads on behalf of both FiOS and cable operator Knology.) --- In response to the latest round of compatibility problems, LightSquared has made even more concessions regarding its L-band spectrum in hopes of quelling fears its proposed network will interfere with GPS systems. Fierce has details.

Retrans: Sinclair Broadcasting said it may pull Fox and The CW affiliate stations from Verizon FiOS TV subs in Baltimore. Sinclair says the current status of negations aren't good; Verizon says it won't pay unreasonable rate increases.

Online: AOL TV is now HuffPost TV. Said Arianna: "HuffPost TV will have many of the same features: exclusive interviews and clips, reviews and recaps, and TV listings. But now, we’re adding HuffPost’s powerful blog and community platforms to the mix (for) a more comprehensive and social look at everything happening in the world of TV, both onscreen and off." --- Hulu launched a dedicated Spanish-language programming service called Hulu Latino featuring content from Univision, Caracol Television and Comarex. The service offers the entire current season of prime-time shows from Univision, Galavision and Telefuture to users of Hulu Plus (with next-day access to free Hulu users). --- TorrentFreak is running the results to its investigation of BitTorrent usage at major entertainment companies saying: "We wondered if these companies hold themselves to the same standards they demand of others." Bottom line? Sony Pictures, Fox Entertainment and NBCU are all "busted." Interesting findings, here.

Tech: How far can TV remotes evolve? Fast Company says the technology is on the verge of a revolution… but with TV tech about to take a radical turn itself, will it even matter? Check this out. --- Barnes & Noble updated its Nook Color tablet including Netflix and Flixster apps. --- For those interested in the 'tech' side of 3D, the International 3D Society announced honorees for its 2nd Annual 3D Tech Awards. A full list of winners can be found here. --- Comcast expanded its production of IPv6 deployment in Florida, Illinois, New Jersey and Pennsylvania.

Mobile: Carrier IQ is in the middle of a PR nightmare now that consumers know its data-tracking software was secretly installed on more than 140M cellphones. The company has been caught off guard by the wave of attention resulting in a series of interviews and press statements that have only further muddled things up. Free Press has the latest.

Enterprise: Verizon is launching Verizon Enterprise Solutions - a global entity overseeing the company's business, gov't and wholesale operations. The new arm will be headed by John Stratton, former EVP and COO of Verizon Wireless.

Up, Down & Over There: BBC World News signed a new deal with Comcast for carriage in Philly, Chicago, Boston, Minneapolis, Indy, Portland (OR) as well as across Northern California, Michigan and Western New England. --- Chellomedia said it will launch a new premium channel in the Netherlands called Film1 Series next year in response to HBO's "imminent" start in Holland. In related news, GfK Research says digital TV penetration in Holland is now 81%. --- Irdeto signed a deal with Polish DTH platform Cyfrowy Polsat for conditional access and mobile DTT tech support.

People: FCC Chief of Staff Eddie Lazarus announced his resignation, effective at the end of January. --- STB maker Pace has replaced CEO Neil Gaydon with Mike Pulli - former CEO of Pace Americas.

Cool!: Hat tip to AllThingsD for running a piece on the Boulder, Colo.-based OpenSource, a new brick-and-mortar store designed to help consumers learn about the infinite world of mobile apps. Check it out.

--- Catch today's media market news in The Evening BRIDGE. •
 
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