Kerry to Question Proposed DirecTV-MLB Deal
By R. Thomas Umstead -- Multichannel News, 1/31/2007 1:17:00 PM
A former presidential candidate plans to take his swings against the proposed DirecTV-Major League Baseball out-of-market package agreement.
Sen. John Kerry (D-Mass.) intends to question Federal Communications Commission chairman Kevin Martin about the pending $700 million deal between the direct-broadcast satellite provider and the league that would provide DirecTV with exclusive rights to baseball’s Extra Innings live-game package. The deal would shut out cable subscribers from purchasing the $179 package, which provides hundreds of live out-of-market baseball games.
Martin will appear Thursday in front of the Commerce, Science and Transportation Committee, of which Kerry is a member.
“I am opposed to anything that deprives people of reasonable choices. In this day and age, consumers should have more choices, not fewer,” Kerry said in a prepared statement. “I’d like to know how this serves the public -- a deal that will force fans to subscribe to DirecTV in order to tune in to their favorite players. A Red Sox fan ought to be able to watch their team without having to switch to DirecTV.”
Representatives from DirecTV and MLB could not be reached for comment.
Meanwhile, cable executives close to the negotiations said the industry has not been notified by baseball that it’s out of the running to secure rights to the package.
The industry, through In Demand, offered to carry the package for $70 million per year on a nonexclusive basis, according to executives close to In Demand. The sticking point has been cable’s unwillingness to provide mass distribution for baseball’s 24-hour linear channel, expected to launch in 2009, according to Sports Business Journal.
The proposed deal has been slammed by several sports-media writers and bloggers, who claimed that MLB is hurting fans by stealing the package from cable.
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So ..what am I supposed to do ..Ask my neighbors to cut down their trees so I can get Direct TV . I am blocked ..have been for several years . Major League Baseball will lose a lifetime fan if they go thru with this
R Schaeffer - 2/23/2007 1:46:00 AM EST -
Limiting MLB extra innings to DirecTV "only" viewers would be a bad business choice for MLB. I have been a long subscriber to Dish Network for several years. Living in Idaho, where satellite penetration is higher than even cable because of geographical characteristics. I subscibe to Dish Network because they are the only satellite provider that also provides local network coverage. (Cable also of course offers the locals.)
Because of this, I think DirecTV has taken a huge hit in subscribers, as they do not offer this coverage. DirecTV''s unwillingness to put out the investment to cover local network stations has left them two alternatives: 1)They rely on large markets for subscribers, or 2) they monopolize highly watched sports indemand telecasts to force their hand in smaller television markets (as they have done with "NFL Season Ticket" for years.) Few people know that in small markets, broadcast networks (ABC, NBC, CBS, and FOX) are blocked on DirecTV. (Federal law requires this when local networks can be received via off-air antennas.)
This leaves us "small market" sport''s fans with no good choice. After all, even though NFL Season Ticket covers all regular season games, without having the broadcast networks, we can''t watch the playoffs or even the Super Bowl.
If DirecTV is allowed to gain exclusive rights to MLB extra innings, it will force their hand even more. However, once again, come playoff time those of us who do not live in large markets (such as Denver, LA, New York, etc.) will be forced to watch the playoffs and the World Series via some other form of service.
So in the end, MLB will be losing millions of fans in smaller markets who refuse to give up their cable, or Dish Network, because of reasons I''ve stated above. As a result, these fans will not be as enamored with the league through lack of coverage in the regular season and ratings will suffer when MLB wants the ratings the most- during the Playoffs and World Series. (Playoffs are split between ESPN and FOX (broadcast network) and the World Series airs exclusively on FOX for years to come.
In a country where we have always tried to eliminate monopolies, this is just wrong. Now two of most watched sports in the country will only be available on DirecTV? What''s next? Major League Baseball really needs to think about "turning off" millions of fans to what in my opinion is still our # 1 sport. Shame on them for even considering this for monetary gains. The loss of viewership and fan base will surely be reflected, and in the end cost them more than they will gain by allowing a struggling satellite provider to "buy" subscibers and monopolize MLB coverage.
Joe Nielsen - 2/9/2007 12:01:00 PM EST -
Any deal that MLB makes that cuts the numbers of people who will be watching out-of-market games is just plain bad business for the sport. One would think that a non-exclusive arrangement with both cable and the dish people would be the best way to keep the growth of major league baseball alive and well. The current proposal is very shortsighted and ill advised. Senator Kerry should look long and hard at what appears to be a very bad deal for the baseball loving public. Sincerely, Ken Silverbush, Providence, RI 02904 (Full disclosure: I am a Yankee fan)
Kenneth Silverbush - 2/8/2007 1:16:00 AM EST -
I am pleased that Senator Kerry is taking up this cause. I am wondering what constitutional power the FCC and Congress might have over such an issue. Perhaps baseball's antitrust status might be affected?
Barry - 2/1/2007 2:13:00 PM EST
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