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Tv Contracts Newsbeat

Thursday, July 31, 2014

The Dark Side of Booming Local TV Deals

But who wants to watch Astros games anyway?

It turns out that big local TV contracts aren’t always good news for teams either. That has turned Selig’s mood quite sour.

When a regional sports network agrees to pay millions of dollars to an MLB team, that RSN has two principal ways to recoup that investment: (1) sell ads during the game broadcasts; (2) charge a carriage fee to the cable and satellite operators in the region who want to carry the RSN. But what happens when the cable and satellite companies balk at the carriage fees?...

Comcast SportsNet Houston launched in October 2012 and, since then, has been seen only by Comcast cable customers. The new RSN – a joint venture among the Houston Astros, Houston Rockets and Comcast Sports Group — couldn’t come to agreement on carriage fees with any other cable or satellite company in the region. With the RSN bleeding cash, Comcast forced the venture into bankruptcy court last September, where the parties have been fighting ever since. Astros owner Jim Crane also sued Comcast and former team owner Drayton McLane for fraud in the sale of the team. That did not make Bud Selig happy at all.

That brings us to the Los Angeles Dodgers. As I explained before the season started:

SportsNet LA launched in February with around-the-clock Dodgers programming, but only customers with TWC or Bright House can view the network in their homes.Every other cable and satellite operator in the Los Angeles market has balked at the network’s carriage fee demand. And TWC hardly counts as an arms-length agreement, as it is the Dodgers’ broadcast partner in SportsNet LA. Indeed, TWC will essentially pay itself the carriage fee for SportsNet LA, and then pay the Dodgers their monthly rights fee as part of the 25-year, $8.3 billion megadeal.

No deal’s been reached. A vast majority of Dodgers fans in LA missed Josh Beckett’s no-hitter, Clayton Kershaw’s no-hitter and every Yasiel Puig bat flip — unless they watched with a friend or at a bar with TWC. Even Vin Scully is without Dodgers’ broadcasts when he’s at home during the team’s long road trips.

RoyalsRetro (AG#1F) Posted: July 31, 2014 at 07:50 PM | 12 comment(s)
  Beats: astros, dodgers, nationals, orioles, padres, television, tv contracts

 

 

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