Baseball is back on Cable

Discussion in 'Baseball Forum' started by wildthing202, Apr 5, 2007.

  1. wildthing202

    wildthing202 Active Member

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    http://sports.yahoo.com/mlb/news?slug=ap-tvpackage&prov=ap&type=lgns

    NEW YORK (AP) -- After negotiations that went into extra innings, baseball struck a deal to keep its "Extra Innings" package of out-of-market games on cable television.

    Under pressure from Sen. John Kerry, baseball and iN Demand reached an agreement in principle Wednesday on a seven-year contract, a deal that likely will allow the sport's new TV network to be available in at least 40 million homes when it launches in 2009.

    Baseball announced an exclusive $700 million, seven-year agreement with DirecTV on March 8, but viewers who would have lost TV access to the games complained.

    "The concern expressed by our fans who would have been forced to switch to alternative carriers or were unable to switch was something we tried to be responsive to," baseball chief operating officer Bob DuPuy said.

    Kerry had asked the Federal Communications Commission to investigate the original deal, and during a hearing last week in Washington he pushed baseball to resume talks with iN Demand, owned by affiliates of Time Warner, Comcast and Cox. While baseball had set a March 31 deadline, the sides kept negotiating and announced a deal Wednesday night, an agreement that still must be finalized.

    "All we ever wanted was a victory for the fans, and this outcome is a big step forward," Kerry said in a statement. "Everyone kept talking and pressing until we had a deal that protects the rights of most fans to follow their hometown team."

    IN Demand began making games available to cable systems in progress starting at 8 p.m. EDT Wednesday, president Robert Jacobson said. The package will be available for $159 this year through a free preview period that will extend into next week, he said, but the 2007 price for those subscribing after that has not been set.

    "I'm exhausted but happy," Jacobson said. "We always needed to feel like we were treated fairly relative to the other distributor. We felt like got our fair share."

    As part of the agreement, iN Demand and DirecTV each will receive about 16 percent equity in the new network, a person familiar with the deal said, speaking on condition of anonymity because that detail wasn't announced. Under the original agreement, DirecTV was to be a 20 percent owner.

    In Demand will make the "Extra Innings" package available to other cable companies, which also would be required to carry the MLB channel. Baseball is willing to resume negotiate with Echostar's Dish Network, baseball spokesman Rich Levin said, but DirecTV president Chase Carey said he anticipated for now that his company would be an exclusive satellite carrier.

    The dispute was largely over baseball's desire to have a deal that will allow its network to be widely available on a basic cable tier. At 40 million homes, it would be one of the largest launches in cable history.

    "It provides both the financial stability and the exposure to ensure a successful launch of the channel and bring the game to as many fans as possible," DuPuy said.

    Because of the new deal, DirecTV will pay less than it would have under the original agreement.

    "The economics are better for us on the `Extra Innings' side," Carey said. "Clearly there were benefits you had in capturing subs (subscribers). We were paying a lot of money to get it. At what price? We weighed all the positives of each."

    I hope Kerry goes after the NFL next......I want the NFL Network.
     
  2. statjeff22

    statjeff22 2008 Green Guy "Most Knowledgeable" Award Winner

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    Unless and until the baseball channel actually does end up on basic cable, this remains one of the least important stories out there. MLB is not the NFL - very few people actually subscribe to Extra Innings.
     
  3. GreenMachine

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    Al Gore invented cable TV
     
  4. ollie

    ollie Right Wing NutJob

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    My father in law is gonna be pissed... he just switched to Directv in South Carolina for this
     
  5. RochesterJet

    RochesterJet Well-Known Member

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    OK, get some detsils before you say "very few people". I bet you are very very wrong.
     
  6. JoeJet

    JoeJet Banned

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    Fewer than 500,000 people subscribed to Extra Innings last year. Thats not alot of people, especially on a national level.
     
  7. Learn To Swim

    Learn To Swim 2008 Nightowltom "Best Non-Jets Poster" Award Winn

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    I've been watching Boston/KC and Philly/Atlanta on SopCast for free :up:
     
  8. statjeff22

    statjeff22 2008 Green Guy "Most Knowledgeable" Award Winner

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    As JoeJet just showed, I am actually very very right. The ratings for Extra Innings are miniscule, as only 180,000 cable households in the entire country even had it last year, and only 500,000 households had it via all methods combined. That's out of 111 million households total, or less than 1/2 of 1% of all households. Consider how often someone would not happen to be watching at any given time, and you have ratings that are laughably tiny.

    Edit: just as a comparison, NFL Sunday Ticket, which is only on DirecTV, has about 1 million subscribers, or about four times the number Extra Innings had on DirecTV. As I said in my original post, the fact that Extra Innings is now available on cable matters to very few people when examined at the national level.
     
    #8 statjeff22, Apr 5, 2007
    Last edited: Apr 5, 2007
  9. GreenMachine

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    However, if the NFL ticket was offered on cable I would bet their subscriptions would nearly double.
     
  10. statjeff22

    statjeff22 2008 Green Guy "Most Knowledgeable" Award Winner

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    I'm sure they would, which is my point - that Extra Innings has nowhere near the general appeal that Sunday Ticket does.
     

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