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LTC 312-2006 Atlantic Broadband Cable: NFL Network lD MIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC # 312-2006 LETTER TO COMMISSION FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager 9 ~ December 14, 2006 () TO: DATE: SUBJECT: ATLANTIC BROADBAND CABLE: NFL NETWORK Attached is a letter from Mr. Jim Waldo, Vice-President & General Manager, of Atlantic Broadband, the City of Miami Beach's cable provider transmitting a letter from the American Cable Association to NFL Network. Mr. Waldo also explains why the NFL Network's recent debut of Thursday and Saturday night pro football telecasts are not being carried on the Miami Beach cable television system. (~ . JMG:REP:lb Attachments C) ~ 4:) -1 c:::t -< ~ :::0 c (") fT1 rn r- ("") () rr'. :::0 u:> rn ~ u> .." < :x rn .. 0 ~ 'T\ '0 -n C) c.) rn w F:\CLER\$ALL\L1LL Y\L TC 2006\Atlanticbbcable.NFL.ACA.L TRS.doc Ii~ ~~ ATLANTIC broadband RECE1VED 2006 DEe' 3 PH ,: 31 CITY CLERK'S OFF ICE Mr. Robert Parcher City Clerk City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 December 5, 2006 Dear Mr. Parcher, I am writing to clear up any confusion that may have arisen over the NFL Network's recent debut of Thursday and Saturday night pro football telecasts, and the fact that these games are not carried on our cable TV systems. Please take a moment to read the attached letter to the NFL Network from the professional association that represents smaller video operators, including Atlantic Broadband. It very eloquently captures our concerns _ concerns, we believe, that are shared by the vast majority of our customers - about how high-cost sports programming unfairly inflates the cost of cable service. The letter also points out that, without the negotiating clout of major-market cable companies, smaller video providers are not being given the option by the NFL Network of letting their customers decide whether they wish to pay for its package of games. Our position is that these games and similarly expensive sports programming belong on a premium tier. That way, the relatively small number of avid NFL fans who want more than the many, many games already carried by Atlantic Broadband via the broadcast networks and ESPN can pay a fair subscription charge to get their fill. And, more important, the far greater number of our customers who do not watch football at all, are just casual fans, or only follow their home NFL team on TV will not be forced to subsidize the minority through cable service rates that are higher than they need to be. We want to put the choice in our customers' hands. One final note: There are no Dolphins games on the Thursday/Saturday schedule in question. As always, please feel free to call if I can be of assistance. <i/~ im Waldo Vice President & General Manager Atlantic Broadband 305-861-8069 ext. 310 I ~ .~ Independent Companies. One Voice. One Parkway Center, Suite 212 Pittsburgh, Pennsylvania 15220-3505 412-922-8300 Office 412-922-2110 Facsimile Matthew M. Polka, President and CEO Direct Dial: 412-922-8300, Ext. 14 E-Mail: moolkara2americancable.orl! Website: www.americancable.orl! November 22, 2006 VIA FAX - 212-681-7583 Mr. Steve Bornstein The NFL Network 622 3rd Ave, New York, 10017 Dear Mr. Bornstein: The latest action by the NFL Network to prohibit consumers from purchasing your network on a tier raises serious concerns within the membership of the American Cable Association. The rising cost of sports programming is being artificially protected from market forces through the utilization of anti- competitive tactics. ACA's members, who are de facto stewards for our customers in negotiating programming rates and conditions, deserve to give their customers options to purchase or not purchase expensive and exclusive programming such as NFL Network. Currently, your network allows big cable companies like Comcast and Cox to offer the NFL Network in a variety of tiers and packages to consumers in urban areas such as Chicago, Philadelphia, Washington, D.C., Phoenix and Atlanta. At the same time, NFL Network is refusing to allow the same flexibility to ACA member companies and their customers in areas like Wyandotte, MI, Altoona, PA, and Wilmington, VT. Your network's actions to tie independent cable operators' hands and require carriage of your expensive service only on analog or digital basic forces cable consumers to bear the cost of a service that not all consumers want. On behalf of ACA's nearly 8 million customers served by its more than 1,000 members, I write to request that the NFL Network change this discriminatory and anti-consumer policy. If the NFL Network is as popular as you say, then give consumers the choice. If you are right, consumers will pay for it. But rather than giving a choice to our customers, NFL Network is using the market power of NFL television rights to force independent cable companies to distribute the channel to nearly all analog or digital customers. This conduct completely disregards consumers' interests. It also squarely conflicts with Congressional and FCC policies favoring more choices for consumers. This is especially offensive because the NFL Network is targeting smaller distributors and rural consumers with these discriminatory practices. . Mr. Steve Bornstein November 22, 2006 Page Two To protect consumers from this conduct, ACA believes it is time for the federal government to investigate discriminatory wholesale programming practices like the NFL Network's, including implications under the NFL's anti-trust exemption. Our members' customers - taxpayers - deserve more from your network and the NFL, which collects billions from the pocketbooks of our unsuspecting and unprotected customers. The American Cable Association urges the NFL Network to provide choice to our members' customers by allowing our members to provide your service with the same flexibility granted to big companies like Comcast and Cox. Sincerely, ~. 7ft-- Matthew M. Polka President and CEO American Cable Association MMP/ CC: The Honorable Arlen Specter The Honorable Patrick J. Leahy The Honorable Mike DeWine The Honorable Herbert H. Kohl The Honorable Ted Stevens The Honorable Daniel K. Inouye The Honorable John F. Kerry The Honorable F. James Sensenbrenner, Jr. The Honorable John Conyers The Honorable Lamar S. Smith The Honorable Howard Coble The Honorable Howard Berman The Honorable Joe Barton The Honorable John D. Dingell The Honorable Fred Upton The Honorable Edward J. Markey The Honorable Rick Boucher The Honorable Bart Stupak The Honorable John E. Peterson The Honorable Kevin J. Martin The Honorable Michael J. Copps The Honorable Jonathan S. Adelstein The Honorable Deborah Taylor Tate The Honorable Robert McDowell With Cooies to All NFL Teams and Owners