http://pbandjunk.wordpress.com/2008/12/11/baseball-on-your-television/As detailed in this excellent article, baseball and TV are comfortably spooning in bed (MLB playing the role of the little spoon, of course). And it’s all thanks to one Mr. John Kerry (You remember him, right? Ran for President? Big chin? That’s the one.) He succinctly opened the door for a floodgate of television growth in baseball. In early 2007, MLB and the Extra Innings package (the TV deal that let’s you watch all your out of market baseball games) signed a 7-year exclusive deal with DirecTV. Well, this sent the cable world into a tizzy. And amazingly, John Kerry stepped in, threatening to revoke baseball’s antitrust exemption if it did not allow all customers on all TV platforms access to Extra Innings. Kerry did not want the cable carriers left out for MLB games the same way that cable viewers cannot watch out of market NFL games (the NFL has an exclusive deal with DirecTV.) Long story longer, they got a deal hammered out in the 11th hour. As part of the deal, all the cable companies and dish networks were given a minority share in the budding MLB Network (debuting Jan 1st, 2009).
Now that the MLB Network is on it’s way, it’s forcing other baseball carriers to adapt. This is the first 24/7 baseball channel, which will put ESPN, FOX and Fox SportsNet to the test. In turn, ESPN has ramped up their winter meetings coverage and is planning on expanding their Baseball Tonight series. Fox SportsNet is locking up teams as fast as they can, afraid that they might spurn the FSN family for their own channel (like the Indians did with FSN Ohio.)
And while everyone is concerned about the boob tube, there is another competitor lurking in the ether: the intertubes. MLB Avanced Media is quitely scoring lots of market share with it’s stream of all out of market games. Yet another for in the battle for your eyeballs.
All of this adds up to a booming business. Maybe the World Series didn’t have it’s greatest showing ever, but baseball is in no imminent danger of losing it’s hold on our television screens.
Here is the article the blogger is referring to:
http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=2673:television-rights-and-mlb-extra-innings-mlb-network-reshape-the-league&catid=29:articles-a-opinion&Itemid=41 In March 2007, in response to an eventually unfulfilled expectation that MLB would grant DirecTV exclusive rights to distribute the “out of market” “EI” package, the US Senate Committee on Commerce, Science, and Transportation held hearings entitled “ Exclusive Sports Programming: Examining Competition and Consumer Choice” . Following are excerpts of the opening statement of Sen. John Kerry (D-MA);
Is this type of deal in the best interest of consumers? Does it serve the sports fans? These are legitimate questions.
Baseball is an integral part of American culture. Commissioner Selig himself has said that baseball is a social institution with enormous social responsibility. I agree with him.
Recognizing that, baseball has benefited from an array of favorable Government policies. The sport enjoys a broad antitrust exemption. It allows them to negotiate carriage deals, and gives them tremendous market power.
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We should support baseball, and in return, I believe baseball should serve the public interest. It is fair to expect baseball to provide broad access to their games.
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I am concerned about exclusive carriage deals in the sports industry. These deals may be good for the short-term financial interests of the sports leagues; they may improve the competitive position of the cable or satellite firms that get the rights -- I have no doubt that there are business advantages --
But we need to discuss the impact of these business changes on baseball fans as well.
Amazing, isn't it?