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MLB Negotiations Continue

Major League Baseball’s March 31 deadline for negotiations on Extra Innings carriage was extended and negotiations are reportedly continuing today. Stay tuned. In Saturday’s New York Times, writer Joe Nocera marveled that the battle had attracted Senator John Kerry and led to last week’s Senate hearing. While not particularly favorable to MLB or to Cable, the article nonetheless captures many of the underlying issues, including the ever-rising cost of sports TV rights.

So let’s think about what baseball has done here. In the interest of seeing to it that its baseball channel gets a running start on DirecTV, it has infuriated the cable industry, which is now unlikely to ever give it the time of day. It has turned down the opportunity to be guaranteed an astounding 30 million subscribers on Day 1 because it wants to squeeze the cable industry for more. “They allowed the cable industry, which is probably the most reviled industry this side of used car dealers, to become the victims in this thing,” said Marc Ganis, president of the Chicago-based SportsCorp. “You have to really screw up to make cable look good.” Plus, it has alienated 200,000 of its most passionate customers — the ones willing to pay $165 a year to see baseball games every night — taking away from them a fruit they had already tasted. Plus, it has forced those same fans to go to the baseball Web site to see those games — which, however good the site is, still entails scrunching over a screen and looking at a picture that doesn’t compare to say, a flat-screen plasma TV. Plus, it has reminded the world yet again how much sports is just another greedy business — exactly what its customers don’t want to be reminded of. Plus, it’s gotten Congress up in arms.
The article is in NYT’s subscription-only Times Select section, but if you have access, it’s a good read. Here the link.

Posted on April 2, 2007 08:14 AM | Comments (0)

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