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.
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while listening to the hearings from Tuesday it sounded apparent that according to the 1961 anti-trust rulings that there could be NO exclusivity contracts when it came to broadcasting baseball games.
Why?? does the Senate and or Congress step in and enforce what is alkready on the books.
Baseball receives major tax benefits from the judiciary and they should be held accountable for the "shameless" behavior.
To put the burden on the consumer to make alternative choices is unreasonable.
I have a bundled package that saves me a considerable amount of money and to give me no choice in purchasing "Extra Innings" is un American
Whatever happened to baseball as amereican as apple pie. Well !!!I can purchase apple pie ANYWHERE.
James McCormack - 3/29/2007 12:29:00 PM EDT -
No company is perfect, I can tell you that. But both cable and satellite are doing what they think is best for their customers. But lets go a little deeper, why does satellite what it to be exclusive? AhHa! The oh mighty dollar! Cause let me tell you In Demand who is owned by Time Warner, Cox Cable and Comcast well you see they met the demand offer. Yup they did! But guess what MLB won’t accept it they want more. They never had any intention of leveling the playing field. It’s sad when the fan is the one to lose out. And to Mr. San Diego’s comment about blackout restrictions guess what buddy all hometown games are blacked out and not by the broadcaster! It’s by the Owners of the team because they want you to show at the stadium not sit on your butt at home. This happens all over the country but nothing will ever change because we live in a money driven society where the fans won’t put a stop to it. if you didn’t go to the games and didn’t buy the merchandize, guess what, MLB and the rich little boys who call themselves heroes would come calling. Nice thought isn’t it.
Rita Ray - 3/25/2007 11:59:00 AM EDT -
and what about those of us who cannot get our local team, San Diego Padres on TV because the broadcast rights are owned by Cox cable and they won't allow retransmission on directv or dish etc? or for that matter any area that they don't have a monopoly in. the fan is the loser in San Diego. I have no problem with directv getting mlb, cable companies can pick it up also, IF, they want their customers to be happy. I have found that the cable companies have been arrogant and non-responsive and that is the reason I now subscribe to directv and have for over 7 years, and now with a HD hook-up with great video and audio qualities that cable does not seem to meet. ie cox cable in northern virginia was obsolete and overly expensive and they never showed up when they said they would.
bill L - 3/9/2007 5:37:00 PM EST -
Long gone are the boys of summer. Today, we have a mostly arrogant overpaid group of ballplayers who care more about their Mercedes and mansions than they do their bats,gloves, and baseballs yet alone the fans who pay their salary indirectly. Sure, I am guilty of adding to their huge paydays by supporting them and attending spring training this past week and having season tickets and looking like a Yankees advertising machine. The old dinosaurs are almost gone except for a few including Yogi Berra who was still standing in the dugout in the 9th inning of rain soaked game while the stars like Jeter, A-Rod, Matsui, and all the other names were back in the dry clubhouse. Gone are the glory days where ballplayers welcomed eager autograph seekers and diehard fans. Today, we get a sneer and an automatic response of "I can't sign because of my merchandising contract". Thanks Jeter. I bet Gehrig,Ruth,Mantle, and Munson are just shaking their heads in disgust. Hasn't baseball tarnished it's image with oversized payrolls, salaries, and heads and let's not forget the oversized muscles with all the performance enhancing drugs flowing through them.
A kid's game has now turned into a "dirty business".
We have to pay to see all the local games on TV if we want to watch them all. It's the bottom of the 9th now with 2 outs and 2 strikes and baseball better do the right thing and start looking out for the fans. If not,
let Congress do there thing and straighten out this mess.
Pat - 3/9/2007 11:01:00 AM EST -
What about the people who don't want to be taken advantage of by Satelite Companies. We are fans of Baseball too.
michelle mcmahon - 3/9/2007 6:20:00 AM EST
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