DirecTV/Extra innings

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hogman14

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An interesting article, will be posting a few on this subject. This more an opinion piece, but the facts are on the table...

-
Yahoo! sports.

Tuned out

By Dan Wetzel, Yahoo! Sports
March 9, 2007




Besides being hell bent on infuriating its best fans and having less people watch its games, Major League Baseball would also prefer if you stop calling to complain. If the FCC and Sen. John Kerry would stop threatening to investigate them, that would be good too.

Other than that, it?s full speed ahead for MLB, which appears to have offered a virtually impossible to complete proposal (and a tight deadline to do it) to the consortium of cable and satellite providers that distribute the Extra Innings package to die-hard and displaced baseball fans.

If that option isn?t met by March 31, then DirecTV will get exclusive rights to Extra Innings and all the hundreds of thousands of fans that Bud Selig called ?ridiculous? two weeks ago will be out of luck when it comes to watching out of market games.

As long as they stop complaining to MLB President Bob DuPuy, no one in New York seems to care what happens with them.

?I hope that those fans who have been directing their concerns to us over the last several weeks will now encourage their cable carriers to in fact enlist for this package,? DuPuy told the Associated Press.



Actually, DuPuy is just trying a weak public relations campaign. He must consider his customers morons if he thinks they are falling for his attempt to shift the blame for this debacle off MLB and onto cable providers who almost certainly will fail to make a deal that was designed to fail in the first place.

The nearly completed exclusivity would cut the availability of Extra Innings from 82 percent of U.S. households to 16 percent. The reason why MLB would do this is far more confusing than the regular baseball fan should have to try to figure out.

That person is someone from, let?s say, Cleveland, who now lives in Atlanta but still wants to watch his Indians so he can enjoy an emotional attachment to his father, his sister and his boys back home. He is gladly willing to shell out $179.95 to do so.

Only now, he won?t be able to, unless he switches to DirecTV.

There is virtually no chance the current consortium of cable and satellite providers (InDemand) can maintain access based on baseball?s smoke-screen offer.

It isn?t just money ? the difference between the offers was less than $1 million per year, per team. It mostly hinges on clearing prime space on cable systems for The Baseball Channel, which isn?t scheduled to launch until 2009.

If that means a guaranteed spot on first-tier basic cable, then forget it. The Baseball Channel promises to draw even more anemic ratings than the NFL Network since baseball isn?t even as popular as football. It would be ludicrous to bump a higher-rated channel in favor of one that isn?t yet created and promises to do far worse.

Robert Jacobson, president of InDemand, said in a statement the ?conditions for carriage that MLB and DirecTV designed (will) be impossible ? to meet.?

The only other hope is intervention by the federal government. But don?t count on Congress telling 30 billionaires they can?t do something. Plus, baseball will probably have better luck confusing politicians with this ?it?s the cable operators' fault? smoke screen. ?This should help enormously in that area,? Selig said. Yeah, no kidding.

Regardless, it seems that MLB has the right to freeze out and anger its customers if it wants. This is the Land of the Free and MLB is free to be arrogant, duplicitous and money-hungry if it so chooses.

And it so chooses.

Earlier this month Selig, whose customer-relations skills were clearly honed during his days as a used car dealer, called fan protests about the rumored deal ?ridiculous? and just ?a slight controversy, in some places.? Then Thursday DuPuy asked fans to stop complaining to his office and instead tell it to those helpful folks at the cable company.

I swear, long before steroids or misbehaving athletes kill sports, these supposed genius businessmen who care about dollars but have no sense will have ruined it.

Last year over half a million people subscribed to Extra Innings and MLB just sold them out for $2 a head, per team per year. So there?s the price of fan loyalty, a small Coke at the stadium. The league is pushing the ?television? package on its website but it?s laughable to suggest watching a game on a computer equates with television.

So, essentially, it looks like DirecTV or nothing for Extra Innings viewers.

What Selig can?t understand is that while there are plenty of people out there who take television very seriously and are willing to compare and switch providers based on slight improvements, there are exponentially more who don?t and won?t.

They will always stick with what they have either out of loyalty, convenience or laziness. Maybe their wife and kids prefer the current system. Maybe they can?t afford a whole new package.

Maybe they are among the five percent of households that can?t use DirecTV at all, or the others where the reception is awful. Or they think a dish is ugly. Or maybe they live in an apartment and while, sure, there is a federal law allowing them to install something on the roof, this being the real world their landlord is against such a practice. And he can make life miserable.

Then there are the young or transient, who move every year or so and just aren?t going to invest in satellite.

There are a million reasons why they aren?t switching and a million more why they shouldn?t have to.

Yet baseball is not just trying to make them, Selig and DuPuy are saying they don?t care about them, their concerns or their past loyalty.

This is what happens when you listen to the suits and not the fans because a spreadsheet can?t measure passion. This is what happens when your commissioner likes to play the part of dopey every man, but is actually just dopey and out of touch like the rest of the rich guys.

MLB is selling its fans out for the price of a utility infielder, which is pretty stupid. Although not as stupid as Selig and DuPuy think you are.


Dan Wetzel is Yahoo! Sports' national columnist. Send Dan a question or comment for potential use in a future column or webcast.
 

hogman14

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How a DirecTV-only Deal Could Impact Extra Innings
Written by Maury Brown
Monday, 08 January 2007
I'm probably not very popular with MLB today. It's ironic in the sense that I've recently received a couple of emails in which there were claims that Selig must be my "hero". OK, for the most part I've been happy with MLB. Labor peace can make a man crazy, and so, cart me off to the asylum, I'm guilty of seeing the glass more than half full with the National Pastime, it's almost full to the brim.

While I'm mostly happy with MLB, the restrictive nature of how MLB chooses to show out-of-market games has me scratching my head, and worse for those at 245 Park, it's made many fans angry: scratch that, outraged.

Today brought a sea of emails to my in-box over my latest Baseball Prospectus article (The Ledger Domain: The Monopolizing of MLB's Extra Innings Package). Here's the crib notes version: MLB is in advanced discussions with DirecTV to make them the exclusive carrier of MLB Extra Innings. In more detail, I write:

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.

I then close by saying:


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.

As a great many of those who wrote me asked: Why didn't you cover all of us that can't get DirecTV due to dish installation restrictions in our apartments, townhouses, and urban locations? Fair enough... What about that?

Some may claim that there should not be government restrictions on how products are delivered. As one reader mentioned, "If a company that makes golf clubs doesn't wish to sell its product in a big-box retailer, they're within their rights." True, but then we're not talking golf clubs, we're talking about a product delivered to homes. I can always get golf clubs. Many will be unable to get DirecTV at their homes, and be totally blacked out.

One reader suggested that it was a strategy to get people to use MLB.TV and Mosaic. Maybe. Still, by the level of anger within the scores of emails that I've received on MLB's black out policy and now this possible twist, many are going to tune off... period.
 

hogman14

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DirecTV Deal Tied to New 24-Hour MLB Channel
Written by Maury Brown
Monday, 29 January 2007
Some more details are emerging this AM via Eric Fisher, John Ourand and the Sports Business Journal and MLB?s effort to make Extra Innings available exclusively through DirecTV. If you do not have a subscription to the Sports Business Journal, I highly recommend it.

Here are some more details on the deal, as it is now known.

MLB and DirecTV are in the final stages of negotiating the $700 million deal, and that a formal announcement will occur within the next 2 weeks.
Extra Innings as an exclusive on DirecTV would begin this year.

The MLB channel slated to air in 2009 and provisionally titled in the past as The Baseball Channel, will be provided on the basic tier of DirecTV
As reported by the SBJ, ?Programming will include some regular-season games, in particular some nonexclusive Saturday night contests that were not sold last year in the national broadcast deals with Fox and Turner.?
Some Arizona Fall League, spring training and minor league games will be shown on the channel, as well.
Extra Innings would be co-marketed with MLBAM?s online out-of-market product, MLB.TV.
In related news, MLB.TV will see an increase in the quality of the feeds this season. As reported, ?Game video will be streamed at a rate of 700 Kbps instead of the 350 Kbps to 400 Kbps rate of last year.?
As to how the press?both mainstream and alternative?have slammed the deal due to the restrictions on consumers, one executive is quoted as saying:

?There will be some people unhappy at the outset, but this is exactly what the NFL, the alleged market leader, and the NCAA have already done,? said an MLB executive, referring to their DirecTV-only deals for out-of-market game packages. ?This is a chance to reinvigorate the product and, with the channel, get to some underserved areas of the sport.?

Apparently, the deal hinged on DirecTV's willingness to place Major League Baseball?s long-planned 24-hour TV network on an expanded basic tier, which InDemand was unwilling to do. Since MLB has been working toward a 24-hour baseball-only channel since 2004, this appears to be the tipping point in relationship to fan backlash due to removing Extra Innings from cable and the Dish Network.

(source: Sports Business Journal ? Eric Fisher and John Ourand - DirecTV talks hinge on MLB net)
 
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hogman14

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Exclusive DirecTV Deal for EI Starts to Get More Coverage
Written by Maury Brown
Wednesday, 24 January 2007
Slowly, a stream of articles on the DirecTV deal is starting to occur within the mainstream media and elsewhere. Here?s some other details, as I now have heard them?

The 7-year deal will start this year (2007) and run to 2013.
There is still some confusion over what cable offered in response to the DirecTV deal. The figure ?$70 million? has been reported, but it?s not clear if that was an annual figure, and it?s still unknown what the number of years being offered in the deal, etc.
As for the reporting on the matter, I start off today on FootballOutsiders.com with Extra Innings Move Could Challenge Sunday Ticket:

A week until the Colts and Bears square off and you?re going through withdrawals. ?Next year will be different,? you say. ?Next year I?m getting hooked up for as many out-of-market games as I can by getting Sunday Ticket.? Ahh? football bliss, right? That depends.

There?s a steady shift going on with how out-of-market games are being delivered to your home. It?s the NFL now, but MLB, NASCAR, and possibly the NHL have come into play. What?s the shift? DirecTV being the exclusive provider for such packages as Sunday Ticket, and ? as became public this week ? MLB Extra Innings. DirecTV is bidding $100 million over seven years to be the exclusive provider of the Extra Innings package, $30 million more than current provider InDemand. It will cut access to Extra Innings from roughly 75 million households to roughly 15 million households.

Many football fans have criticized the NFL for not making Sunday Ticket available anywhere but DirecTV. But there?s a chance that an exclusive with MLB for Extra Innings might elevate the monopoly aspect of DirecTV to get members of Congress into the mix, more than they already have.

Tim Lemke of the Washington Times reports on his Sports Business Blog, A shrewd deal for MLB:

Not exactly the most "pro-fan" move by Major League Baseball. In fact, it's kind of evil. But when you analyze it, the deal is pure genius, and here's why:

There is another way to see out-of-market baseball games. It's called MLB.TV Internet service, which the league owns and operates.

Dan Wetzel of Yahoo! Sports lays into MLB heavily with MLB TV deal gets fuzzy reception:

So here comes Major League Baseball in a quick, shortsighted money grab (again), selling out its core fans (again) and telling everyone (again) how the sport ought to be consumed.

Here comes MLB, as arrogant and detached as ever, ready to limit its popular "MLB Extra Innings" package by giving it exclusively to DirecTV rather than a large consortium of cable and satellite providers. And for what, an average of a million bucks per year, per team?

That's the price of fan loyalty these days? That's how much baseball owners value their best costumers? A bad middle reliever?

And my esteemed colleague Joe Sheehan of Baseball Prospectus wrote yesterday in Prospectus Today: The Deal Almost No One Likes:

MLB is going to tick off a subset of that group: EI subscribers who either have Dish Network or cable. However, they?re not going to lose that group of people as fans of MLB as a whole. Some of those people will switch to DirecTV, others will make do with MLB.tv, still others will not purchase a package and live without the extra games. The number of fans that MLB will lose because of this decision, however, could fit in my living room. You simply don?t go from being such a big fan of baseball that you would purchase 1200 games a year on satellite to a non-fan based on one decision.

This is surely just the beginning. Wait till the deal actually is consummated.
 

hogman14

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I think this has a ton to do with guaranteed money. They would have taken it from DirecTV, Dish Network, Comcast, Cox, anyone. Money talks and Selig walks.

Consider that TBS paid 1/20th than that ESPN paid for MLB wild card as the latter did for 16 MNF games.
 

Sun Tzu

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Just me a guess but any real sports fan would have a dish anyway. This is MAerica at its finest - consumers have a choice and all the competitors had a chance to bid. i really enjoy the non-layers who scream anti-trust ---this doesnt violate any antitrust laws.
 
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