by Maury Brown Last summer, I wrote in Blackout Blues how MLB’s arcane territorial television broadcast system restricts consumer options for those that wish to see MLB games out-of-market through MLB.com or MLB Extra Innings. Now, MLB may be creating even more restraints on consumers. John Orerand and Eric Fisher of the Sports Business Journal have reported that MLB is in advanced talks with DirecTV to make the satellite television company the exclusive provider of MLB Extra Innings. While Extra Innings was initially only offered on DirecTV in 1996, the package has been available on cable since 2001, and on Dish Network since 2004.
If the deal is approved, it is sure to raise the ire of cable interests like Comcast. In fact, the move would seem to be a game of high-stakes poker for MLB, considering that members of Congress and the NFL have been sparring over the latter's decision to use DirecTV as the exclusive provider of the Sunday Ticket package.
In early December, Senator Arlen Specter (R-Pa.) introduced a bill that would repeal the NFL's antitrust exemption under the Sports Broadcasting Act of 1961. Currently, the NFL negotiates the broadcast rights for all of its 32 teams. Specter’s bill would repeal that ability and set up a scenario in which teams would negotiate television deals separately. "As I look at what the NFL is doing today with the NFL channel with the DirecTV ... a lot of people, including myself, would like to be able to have that ticket," Specter said. How Specter factors into the MLB deal with DirecTV has more to do with just his interest in protecting consumers. As noted, Specter is a senator from Pennsylvania. Comcast is headquartered in Philadelphia, and owns In Demand, the company that provides MLB Extra Innings on cable.
Specter's ability to strike fear in the NFL or MLB has lessened since November. Specter was the Senate Judiciary Chairman, but with control of Congress shifting to the Democrats this month, Senator Patrick Leahy (D-Vt.) takes control as chairman of the committee. While Specter is no longer chair, however, he still wields considerable power in Congress, and Leahy hasn't exactly been in MLB’s corner in the past. Leahy helped narrow the scope of baseball's antitrust exemption during the 2002 Congressional hearings on the exemption, saying in his opening statement at the time,
Between the narrowness of the way the Supreme Court had perpetuated baseball’s antitrust exemption-- only as it applied to labor-management relations-- and our work in the Congress, in which we struck the last remaining remnant of the judicially-created exception to the applicability of the antitrust laws, it seems that there is no longer any basis to contend that a general, free-floating baseball antitrust exemption somehow continues to exist. As for DirecTV itself, the company has other ties to MLB than just a possible exclusive agreement for Extra Innings.
On December 22nd, Rupert Murdoch agreed to sell his control of DirecTV to Liberty Media in exchange for the $11 billion stake that Liberty Media had in News Corp. With that, Liberty gets control of three regional sports networks (RSNs), including Fox SportsNet Pittsburgh, Fox SportsNet Northwest, and Fox SportsNet Rocky Mountain. But the ties to MLB are about to go deeper than that.
As I detailed in late June of last year, the Braves are about to be part of a large and complex stock-swap scheme between Time Warner and Liberty Media. In other words, soon Liberty Media will own the Braves, several RSNs, and DirecTV, the company with which MLB is negotiating the exclusive agreement. (This is on top of DirecTV's deal with the NFL for Sunday Ticket and its deal with NASCAR.)
DirecTV has even approached the NHL about an exclusive deal for out-of-market games. Liberty's influence will soon reach far beyond just MLB: it will suddenly have holdings that stretch across a vast array of professional sports in terms of owning a franchise outright and controlling a large system of broadcasting outlets.
All of this sets up an interesting and possibly volatile situation with Congress, and a new and suddenly powerful force in MLB's ranks. An exclusive DirecTV deal with MLB will place the sport in the sights of Congress yet again. If the deal goes forward, it will be one more example of consumer restriction. There is already ill-will amongst those caught up in the convoluted blackout policy as it pertains to out-of-market broadcasts. There were approximately 750,000 subscribers to MLB Extra Innings last season. How do you think fans will react when they find out that not only are they caught in the "Blackout Blues," but that many will also have to jump from cable to DirecTV for that dubious privilege? One might surmise that there will be fewer subscribers this year than last.
If you've been watching Extra Innings on cable, you'll need to hold off until you see whether this deal goes the DirecTV route. You may have to start finding a nice place to mount that dish on your house.
― Dr Morbius (Dr Morbius), Tuesday, 16 January 2007 22:32 (nineteen years ago)
― maura (maura), Wednesday, 17 January 2007 04:57 (nineteen years ago)
I would love to see the entire org. of MLB pretty much smashed to smithereens, actually. It's so bizarre that in America, free-marketeer ideologue capital of the world, pro sports are allowed to operate like mafias. Let each team be independent, let the teams rise and fall as they will. Have an overarching org. that sets schedules, makes rules and little else.
― Euai Kapaui (tracerhand), Wednesday, 17 January 2007 18:49 (nineteen years ago)
― m@p (plosive), Wednesday, 17 January 2007 20:22 (nineteen years ago)
― Dr Morbius (Dr Morbius), Wednesday, 17 January 2007 21:01 (nineteen years ago)
― David R. (popshots75`), Wednesday, 17 January 2007 21:05 (nineteen years ago)
honestly, though, this wouldn't be the first terrible business decision they've made in the past couple of years (coughrehearsalsd0tc0mcough).
― maura (maura), Thursday, 18 January 2007 03:38 (nineteen years ago)
― Steve Shasta (Steve Shasta), Thursday, 18 January 2007 04:12 (nineteen years ago)
m@p, I use MLB.tv. So no blackout restrictions, happily, for us internationalists.
NASN is good but the only way to get it is through... Sky! (The Murdoch-owned UK grandaddy of DirecTV)
― Euai Kapaui (tracerhand), Thursday, 18 January 2007 13:14 (nineteen years ago)
i'm pretty psyched to get mlb.tv actually! i survived this last season w/o cable so it'll probably feel like an upgrade.
― m@p (plosive), Thursday, 18 January 2007 20:01 (nineteen years ago)
― David R. (popshots75`), Thursday, 18 January 2007 20:05 (nineteen years ago)
― Thermo Thinwall (Thermo Thinwall), Thursday, 18 January 2007 20:37 (nineteen years ago)
― David R. (popshots75`), Thursday, 18 January 2007 20:42 (nineteen years ago)
― do i have to draw you a diaphragm (Rock Hardy), Thursday, 18 January 2007 21:28 (nineteen years ago)
― David R. (popshots75`), Thursday, 18 January 2007 21:42 (nineteen years ago)
― g00blar (gooblar), Thursday, 18 January 2007 21:53 (nineteen years ago)
― do i have to draw you a diaphragm (Rock Hardy), Thursday, 18 January 2007 22:41 (nineteen years ago)
― m@p (plosive), Thursday, 18 January 2007 22:51 (nineteen years ago)
― Steve Shasta (Steve Shasta), Thursday, 18 January 2007 22:52 (nineteen years ago)
― m@p (plosive), Thursday, 18 January 2007 22:53 (nineteen years ago)
― m@p (plosive), Thursday, 18 January 2007 22:54 (nineteen years ago)
I already get DirecTV so this actually has no effect, as I will renew again this year.
― Bee OK (boo radley), Sunday, 21 January 2007 13:24 (nineteen years ago)
― Euai Kapaui (tracerhand), Monday, 22 January 2007 17:29 (nineteen years ago)
Sheehan basically argues that this is a good business decision for baseball.
― Alex in SF (Alex in SF), Monday, 22 January 2007 19:48 (nineteen years ago)
When you break it down, this decision is clearly the right one for MLB. They make more money up front. The people it affects negatively have a series of options, albeit aggravating or inferior ones, and their pursuit of those options is likely to create additional revenue. The far-left-end users who will be hurt by DirecTV’s exclusivity are going to be the most vocal about their unhappiness, but at the same time, they are the ones least likely to be completely turned off of baseball.
Make no mistake: this is a fairly fan-hostile decision. However, MLB has proven that it will alienate a segment of the population in the short term to make more money in any term. This is comparable to the way in which teams have rushed to move their telecasts to new channels that they own. By doing so, they’ve instigated public pressure on cable companies to add that channel to their lineups, even when said channel has just three hours of valuable programming a day.
DirecTV is essentially going to be calling the same play. They will not only get a boost in dish ownership and subscriptions to EI, but there should be some benefit in the resulting demand for dish penetration in areas where regulations have kept the units out, a move likely to be led by…disenfranchised baseball fanatics.
...This is a pretty good move for MLB across the board, with more hidden benefits than hidden costs. I sure hope I get to use channels 734-748 this year, but if I can’t, I’m not going to be able to argue against the deal with anything but self-interest.
― Dr Morbius (Dr Morbius), Monday, 22 January 2007 20:59 (nineteen years ago)
― Euai Kapaui (tracerhand), Monday, 22 January 2007 22:05 (nineteen years ago)
― Alex in SF (Alex in SF), Monday, 22 January 2007 22:55 (nineteen years ago)
― g00blar (gooblar), Tuesday, 23 January 2007 11:43 (nineteen years ago)
― maura (maura), Tuesday, 23 January 2007 14:18 (nineteen years ago)
― Dr Morbius (Dr Morbius), Tuesday, 23 January 2007 14:53 (nineteen years ago)
http://bizofbaseball.17.forumer.com/viewtopic.php?t=66
― Dr Morbius (Dr Morbius), Monday, 29 January 2007 19:54 (nineteen years ago)
The Massachusetts Democrat said he plans to raise the matter with the chairman of the Federal Communications Commission at a hearing Thursday.
''I am opposed to anything that deprives people of reasonable choices,'' Kerry said in a statement. ''In this day and age, consumers should have more choices -- not fewer. 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.''
''Extra Innings'' is a service that allows viewers to watch games involving teams not in their local markets. In past years, the service has been available through a range of providers, but a pending deal would make the service only available to DirecTV subscribers.
FCC Chairman Kevin Martin is a scheduled witness at Thursday's hearing of the Commerce, Science and Transportation Committee.
― Dr Morbius (Dr Morbius), Thursday, 1 February 2007 14:43 (nineteen years ago)
Can we have Rudy G, or Strom Thurmond, or anyone besides JK speak up against this?
― David R. (popshots75`), Thursday, 1 February 2007 14:53 (nineteen years ago)
― David R. (popshots75`), Thursday, 1 February 2007 14:58 (nineteen years ago)
― Alex in SF (Alex in SF), Thursday, 1 February 2007 16:22 (nineteen years ago)
― David R. (popshots75`), Thursday, 1 February 2007 16:30 (nineteen years ago)
― Dr Morbius (Dr Morbius), Thursday, 1 February 2007 21:42 (nineteen years ago)
― Bee OK, Thursday, 1 March 2007 09:58 (eighteen years ago)
― Dr Morbius, Monday, 5 March 2007 18:09 (eighteen years ago)
― maura, Monday, 5 March 2007 18:11 (eighteen years ago)
― David R., Monday, 5 March 2007 19:01 (eighteen years ago)
― Bee OK, Friday, 9 March 2007 21:23 (eighteen years ago)
― Bee OK, Sunday, 11 March 2007 04:42 (eighteen years ago)
― maura, Thursday, 5 April 2007 00:58 (eighteen years ago)
― Bee OK, Thursday, 5 April 2007 05:35 (eighteen years ago)
― Dr Morbius, Thursday, 5 April 2007 14:02 (eighteen years ago)
― David R., Thursday, 5 April 2007 14:44 (eighteen years ago)
― Rock Hardy, Thursday, 5 April 2007 15:11 (eighteen years ago)
― Dr Morbius, Thursday, 5 April 2007 15:17 (eighteen years ago)
― David R., Thursday, 5 April 2007 15:24 (eighteen years ago)
― Dr Morbius, Thursday, 5 April 2007 15:49 (eighteen years ago)
― sanskrit, Thursday, 5 April 2007 15:53 (eighteen years ago)
― sanskrit, Thursday, 5 April 2007 15:54 (eighteen years ago)
― mattbot, Thursday, 5 April 2007 16:12 (eighteen years ago)
― maura, Thursday, 5 April 2007 16:24 (eighteen years ago)
― maura, Thursday, 5 April 2007 16:25 (eighteen years ago)
― Rock Hardy, Thursday, 5 April 2007 16:28 (eighteen years ago)
― sanskrit, Thursday, 5 April 2007 18:19 (eighteen years ago)
― Dr Morbius, Monday, 9 April 2007 14:38 (eighteen years ago)
― Andy K, Monday, 9 April 2007 14:52 (eighteen years ago)
― Dr Morbius, Monday, 9 April 2007 15:42 (eighteen years ago)
― Bee OK, Thursday, 12 April 2007 06:11 (eighteen years ago)
― David R., Thursday, 12 April 2007 14:06 (eighteen years ago)
― maura, Friday, 13 April 2007 13:12 (eighteen years ago)