In Demand, Baseball Talk 'Innings’ Deal
By R. Thomas Umstead -- Multichannel News, 1/7/2007 7:00:00 PM
Cable operators are hoping not to strike out on a renewal of Major League Baseball’s out-of-market game package prior to opening day in April.
Video-on-demand purveyor In Demand is in talks to renew cable’s deal to distribute the “MLB Extra Innings” package, even as the league is discussing an exclusive distribution arrangement with DirecTV Inc., similar to the direct-broadcast satellite service’s deal with the National Football League for its “NFL Sunday Ticket.”
Cable operators have been offering the $170 MLB Extra Innings package — which offers as many as 900 games a year — since 2001. Initially, DBS leader DirecTV held the exclusive rights to that content.
But cable executives with knowledge of the deal say the DirecTV is making a major push to again secure exclusive rights to the package, in an effort to give it more of a sports-content advantage over cable and satellite archrival Dish Network. Neither DirecTV nor MLB officials could be reached for comment.
In Demand officials would only say that the company is in negotiations with MLB, declining to elaborate.
While the baseball pact is important to cable from a competitive standpoint, it’s not hitting home runs in the subscriber arena.
Kagan Associates estimates that Extra Innings generated 280,000 subscribers across both cable and satellite services in 2005. That pales by comparison to the 600,000 subscribers netted by the National Basketball Association’s “NBA League Pass” package and the nearly 2 million scored by Sunday Ticket during the same time period, according to Kagan.
Further, the package is dwarfed by the 1.3 million subscribers that baseball generated in 2005 for its $79.95 MLB.TV subscription broadband service, according to New York Magazine. The package includes live games, as well as extensive highlights and classic contests. Sports-programming consultant Lee Berke believes that the emergence of the broadband package could allow MLB to take DirecTV’s exclusive package without alienating cable subscribers.
“[MLB.TV] has become so widely distributed in its own right that it’s become a balancing act — the leagues are looking at various platform and the dollars they get, and trying to figure out whether exclusivity or multiple distributors makes sense,” he said. “My guess is that if DirecTV comes up with enough money, then baseball may say, 'We’re doing so well with MLB.TV maybe it’s worth it to explore being exclusive with DirecTV.’ ”
Cable does not receive any cut of the revenue from MLB.TV, but the industry benefits because its high-speed Internet access facilitates customer viewing and ultimately satisfaction with the broadband package.
Next up on cable’s out-of-market docket: the National Hockey League’s “NHL Center Ice” package, which expires after the 2006-07 season.
An NHL spokesman would only say that it has begun discussions on potential renewals with current partners.
-
I sympathize with Mr. Harlow''s statement. I too have subscribed to "INDEMAND-Extra Innings" through Cox Cable the last two years to follow my favorite team. I have been very happy with the quality that digital cable provides. One thing to know about satelite T.V., is that when the wind blows or the rain pours the T.V reception goes and the moaning roars. If this deal goes through, indeed many unfortunate folk who live in apartments will be locked out of MLB. For many MLB fans, baseball is thier cheap entertainment and out in life. The one thing they can afford, which brings them pleasure on a daily basis during the nights of summer. Now it looks as if they are LOCKED OUT of MLB. SHAME ON MLB for there compromising the fan for a mere million bucks per team. MLB-It''s no wonder you say "BASEBALL FANS ARE GREAT". We (the fans) take the blunt of your greedy scheming deeds and keep coming back because the game itself feeds our daily needs. YES, WE ARE DRUGGED ON BASEBALL AND WE CANT BREAK THE HABIT. We are dependant on MLB and true to MLB, and that is the ACE TRUMP CARD that MLB can play everytime to get there way. MLB cannot lose! To bad for the MLB fan!
David Cobler - 3/10/2007 9:34:00 AM EST -
Are you sure those numbers (260,000) are correct? From the LA Times: "Of the 500,000 subscribers to the Extra Innings package last season, 270,000 were with DirecTV, according to sources. Going by those numbers, 230,000 would be left out this season."
guest 1 - 2/5/2007 3:42:00 AM EST -
This would really hurt me. i have been a subscriber for the last four years through cable, paying around $150 just to watch one team, and have been very happy. Trouble is--I live in an apt & am not allowed to have any dish system. I am not alone with this problem.
John E. Harlow - 2/1/2007 12:02:00 PM EST -
There has got to be a way to show MLB that they are screwing their loyal fans!
Matt - 1/24/2007 5:18:00 PM EST
DirecTV Turns Up Heat
03/19/2007They Have The Right Idea
08/12/2009Talks Head to 'Extra Innings’
03/11/2007Roku Stepping Up To The Plate
08/13/2009
