MLB-DirecTV Deal Does Not Guarantee Exclusivity
By Ben Grossman -- Broadcasting & Cable, 3/8/2007 12:01:00 PM
In a curveball, Major League Baseball and DirecTV announced Thursday an extension of the out-of-market Extra Innings baseball package, but MLB also said it will give other incumbents In Demand and Dish Network a chance to also retain the package.
It had been widely expected that DirecTV would acquire exclusive rights to the package for the next seven years.
But MLB officials said Thursday they would give In Demand and Dish until the end of this month to match DirecTV’s rate and carriage agreement.
They would have to match both the financial commitment as well as DirecTV’s agreement to carry The Baseball Channel on a basic tier when the new MLB-backed network launches in 2009.
DirecTV will be a minority partner in the new network.
“We want to make this available to our fans and the issue will be whether the incumbents want to pay the freight to make it available to their customers,” says MLB exec Tim Brosnan.
DirecTV chief Chase Carey said while his company obviously would prefer exclusivity, it has separate financial constructs whether or not it ends up with exclusivity in the deal.
It has been reported that DirecTV was prepared to pay $700 million for exclusive rights over the seven year deal, and Carey said that of course the non-exclusive price would be substantially lower.
The expected exclusivity has been the subject of scrutiny from legislators including Massachusetts Democrats SenatorJohn Kerry and Rep. Ed Markey. MLB execs declined to comment on whether pressure from Washington or elsewhere had impacted the decision to offer the package to the other incumbents.
Kerry was encouraged but cautoius: “I will review this deal to ensure it benefits consumers,"he said in a statement. "I’m encouraged that Major League Baseball may be willing to provide broader access to their games than what was initially proposed. I will be watching closely to ensure the league works in good faith so that America’s pastime is available to all fans. My concern all along has been that fans continue to have the ability to enjoy baseball on television.” "Without the benefit of knowing all the details, it's hard to know if this deal represents a curve ball to consumers or a solid base hit for fans across the country," said Markey. "I am eager to review the agreement in order to weigh its effect on baseball fans, (particularly displaced citizens of Red Sox Nation,) as well as on competition in the video programming marketplace." Major League Baseball also continues to make out-of-market contests available on a subscription basis via the Internet."
DirecTV also plans new enhancements to the baseball package, including a mosaic channel that features multiple games at once.
