citi card credit card capital one business credit card uk citibank sears credit card phone number best low rate credit card balance transfers use company credit card policy case-mate id credit card case for blackberry 9700 dispute credit card payment uk best credit card deals cash back furniture stores that offer credit cards nationwide credit card contact number fair credit rating credit cards uk credit card usb drive price credit card online payment hdfc bank 5 cash back credit card canada can i pay my chase credit card at a branch credit card definition balance transfer chase bank student credit card hsbc credit card phone banking number compare canadian credit cards travel capitaloneonlinebanking credit card what is the easiest credit card to get best buy credit card site make citibank credit card payments online citibank credit card airasia reviews on applied bank secured credit cards student credit cards with airline rewards high risk credit cards canada credit cards help build credit no annual fee navy federal credit union credit card limit credit cards with no interest for the first year chase credit card logon fake credit card details for sites good credit card low interest rate foreign exchange credit card charges can you buy usps money orders with a credit card mbna credit card customer services address find a credit card based on my credit score credit card credit balance transfer paypal with credit card charge when do you pay interest on credit cards credit card ratings 2010 virgin air mile credit card long before credit card debt written off best business credit card with cash back maurices credit card account number secured credit card canada td how do i apply for a bp credit card difference between mastercard visa credit cards secured credit cards ratings plastic credit card holder credit card wage garnishment arizona sears credit card discount online credit card signature not required credit card slider for your phone does cancelling credit card affect credit score first savings credit card mailing address best credit cards for rebuilding credit after bankruptcy fnb credit card division contact marriott rewards credit card usa us airways dividend miles credit card how to buy bitcoins with credit card hbc credit card customer service canada college students credit card offers stolen credit cards buy gift cards zero transfer balance credit cards lowest credit card apr rak bank credit cards dubai southwest airlines free flight credit card apply for citi credit card best credit cards apply low credit credit card information stolen amazon lic premium online payment through hdfc credit card aa credit card manage my card high credit card debt may bad your health security credit cards internet citibank credit card travel notification fair credit credit cards airline rewards credit cards with no annual fee anntaylor credit card should you get a personal loan to pay off credit cards rent car without credit card 2011 bank america merchant credit card processing virtual credit card paypal payment can i apply for a credit card with no job hdfc credit card payment through netbanking icici bank pay new york and company credit card change your credit card nook color get double miles with delta credit card best bank credit card canada apply sears credit card canada can pay money order credit card post office how to get free netflix without credit card google best credit cards credit card cvv code location need credit card bad credit hsbc activate credit card phone number sheraton credit card points free credit report without a credit card needed ecommerce credit card processing reviews how to cancel credit one credit card hilton hhonors credit card gold status bank of the west credit card customer service 1st financial bank credit card us banks secured credit card united small business credit cards princess credit card rewards green credit card hsbc amazon store card credit limits credit card order form php icici credit card apply new citi aadvantage credit card logon hdfc credit card customer care contact number get gift credit card online how to make a claim on your credit card check your credit score free no credit card pay target credit card payment online itunes says my credit card security code invalid tribute credit card customer service number apply credit card no credit history low apr cards compare credit card merchant services comparison uk credit cards help build credit fast barclays credit cards online application credit card affiliate program conversion rate card consolidation credit debt online hdfc bank diners club international credit card can you pay your mortgage with a credit card bank of america fly thomas cook credit card charges citi credit card j jill credit card payment online bank of america credit card phone # wells fargo business credit card application netflix free trial no credit card capital one credit card settlement offer juniper bank credit card payment rewards credit card wells fargo credit cards with ;chip and pin; technology 2nd chance visa credit cards public bank credit card balance transfer promotion apply for a debit card with bad credit instant approval w hotel credit card hold best credit card low rate interest credit card authorization form template microsoft get baby phat credit card gemoney bank credit card login suze orman credit card comparison best credit card for good credit score aspen credit card payment address standard bank credit card holders specials interest free credit cards abroad how to activate wells fargo credit card best credit cards 2011 lowest interest credit cards with millenium credit card bp visa rewards credit card credit cards good travel benefits pay my sears credit card account get credit card today online venture credit card allied bank credit card requirements best buy capital one credit card login top credit card rewards canada netflix without credit card paypal fuel credit card policy does closing credit cards hurt my credit score attachment iphone swipe credit cards credit cards for bankruptcy repair lane bryant credit card bill payment shopping credit card safe put credit card android market credit card symbols font what will it take to pay off my credit card balance first hawaiian bank credit card services sovereign credit card payment hdfc credit card internet banking toyota visa rewards credit card login hilton american express credit card review american express foreign exchange rates credit cards 7 eleven gas credit card zero interest zero balance transfer fee credit card pay just tires credit card online juniper carnival sea miles credit card credit card capital one review cap one credit cards pay wal mart credit card small business credit cards cash back cancel citi credit card online how a credit card works magnetic strip how to settle credit card debts on your own target credit card account gap visa credit card payment center bank of america credit card application status check sample credit card privacy statement what are the advantages and disadvantages of using credit cards american signature furniture credit card sign in credit card sized cell phone charger can discharged bankrupt get credit card singapore credit card pictures website top 10 credit cards india 2012 credit card reader uk remove my credit card info itunes pay bank of america credit card at atm leather men;s credit card holder us bank credit card customer service address connect cell phone credit card machine pay staples credit card online walmart credit card application canada square credit card iphone swipe bank america american express credit card benefits credit card dispute chargeback should i use a home equity loan to pay off credit cards should i cancel my credit cards when i pay them off signature on the back of a credit card immediate approval business credit cards usaa rewards credit cards wells fargo one time credit card number www amazon com credit card payment does late credit card payment hurt credit score ocbc bank titanium credit card swipe credit card iphone chase credit card mailing address bank of america credit card for new credit chase credit card southwest airlines login change your credit card psn credit cards with 0 transfer apr emirates airlines rewards credit card what is a gateway credit card processor clark howard best credit card 2012 protective sleeve for credit cards canada mbna bank of america credit card login how to settle credit card debt with chase bank maybank credit card refinance home depot credit card contact what is a good apr for a first credit card american credit cards with chip and pin how to get approved for a bank of america student credit card gap credit card rewards activate chase freedom credit card how to swipe credit card on square sbi credit card india login secured credit card rebuild credit canada credit cards for new businesses with bad credit list of all types of credit cards silver credit card holder how do i pay my pottery barn credit card online apply visa credit card india tires plus credit card online account central for hsbc credit card suntrust secured credit card offers axis bank credit card online application india tcu credit card member services getting a credit card guide what is the best credit card to earn qantas frequent flyer points visa credit card number security code generator bank america credit card convenience checks account centon 8gb datastick usb credit card flash drive do have pay old credit card debt how to pay off credit cards quick sears credit card contact paying credit card advantages disadvantages top 5 credit card processors us update credit card details apple id wells fargo student credit card review best cash rewards credit cards 2011 credit score needed citi simplicity credit card best buy credit card login account are credit cards good or bad for college students can i pay my lowes credit card bill at the store most prestige credit cards usaa cash rewards credit card hard credit card case best credit card rewards programs canada credit cards comparison sites american airlines credit card review ink credit card business southwest business credit card 50000 how to find a credit card security code how to pay my target credit card online freeze interest credit card debt 3 percent cash back credit card how do i make hsbc credit card payment online transfer money from credit card to paypal balance wells fargo bank credit card address new millenium credit card application disputing credit card charges uk hdfc credit card cancellation letter hsbc credit card internet banking registration icici customer care credit card delhi contact chase credit card phone apply for student credit cards with no credit national bank credit card exchange rates department store credit cards that are easy to get best credit card for fuel purchases ryanair credit card administration fee capital one credit card statement login storing credit card information php jquery credit card format home depot credit card online banking home depot credit card login secured credit card wells fargo rbs co uk personal credit cards pay sunoco credit card bill do you call 3 numbers back credit card icici credit card reward points imint target visa credit card benefits best aviation fuel credit card apply hsbc credit card india walgreens prepaid credit cards chase bank credit card services phone number paying down credit card debt increase credit score suntrust credit card payment address first credit card history credit card center cimb reclaim credit card repayment cover apply for menards credit card online what is a good balance to have on a credit card chase credit card sapphire vs freedom does target debit card run credit check credit cards bad credit no fees instant approval hibdon tires plus credit card change credit card ipad credit cards for bad credit no deposit instant approval standard chartered credit card singapore hotline i have bad credit and need a unsecured credit card credit card processing jobs atlanta credit card payments reported irs beginning 2011 hdfc credit card bill payment through icici net banking does visa gift card work like credit card the credit card information cannot be updated playstation store only paying minimum on credit card telefono servizio clienti deutsche credit card sovereign credit card online do need credit card number itunes enter black credit cards canada sky miles credit card 76 gas station credit card payment credit card cube for android prepaid credit cards banks pulaski bank credit card phone number will bankruptcy erase credit card debt applying for a credit card with a bad credit rating credit card id check laws how do you calculate monthly interest on a credit card get quick credit card ge capital finance credit cards hsbc credit card 0 balance transfer how do i apply for ikea credit card credit card data breach notification requirements best buy hsbc credit card bill payment does unsecured credit card mean what is the easiest credit card to get approved for with bad credit mobile credit card services for small business hsbc premier credit card uk chase credit card awards 2010 cash back credit cards credit card act 2009 summary wireless credit card terminals small business wireless credit card terminal singapore uml diagrams for credit card processing system credit card bonus miles offers 2011 kay jewelers credit card online application prepaid credit cards to build credit with no fees does bank of america allow you to pay your mortgage with a credit card chase-ual mileage plus-credit card best airline credit card offer 2012 instant reply credit card application credit card swiper for ipad shell credit card ppi wyndham rewards credit card canada credit card applications instant approval south africa icici bank credit card helpline best buy credit card joint application lexus credit card key battery unsecured visa credit cards poor credit credit cards no balance transfer transaction fees citi credit card status fatwallet business credit cards with the best rewards virgin credit card positive balance iphone credit card application reviews 5 gas rebate credit card free credit card processing small business credit card machines small business office depot how to cancel orchard bank credit card flying blue credit card norway datacap credit card terminal visa credit card hacking software how can i stop pre approved credit card offers how to check my citibank credit card account cnn money credit cards from hell best miles credit card citicard credit card payment address rbs credit cards customer service address credit cards for international students in us how to get free credit card points bad close credit card credit score business credit card poor credit credit card roulette app orchard bank credit cards uk credit card with rewards airline help me find a credit card with bad credit spirit credit card application status citi credit card services activate netflix xbox without credit card check your old navy credit card balance chase freedom business credit cards review sears credit card pay online definition of credit card grace period how to pay axis bank credit card payment online bank america small business credit card machine bill me later credit card account what happens if i dont pay off my credit card credit card promotional offers can transfer money my credit card my paypal account capital one credit card travel insurance british airway credit card offer how to get a cash advance on a credit card bank of america can u use sears credit card kmart building your credit with a credit card 2 percent rewards credit card can i get cash advance with my credit cards chase credit card services telephone number credit card spending promotion walmart prepaid credit card visa credit cards frequent flyer points singapore airlines cash back credit card reward calculator credit card to build credit history merrick credit card application td ameritrade bank credit card accepting credit card via phone chase marriott credit card payment brown leather money clip credit card holder what is the difference between running your debit card as debit or credit ladies wallets credit card slots instant approval credit cards bad credit no bank account plaza tire credit card online payment annual fee credit card worth authorization letter credit card collection household bank credit cards online low credit card offers best way pay credit cards build credit chase credit card commercial 2009 interest free credit cards for students what do you call the 3 numbers on the back of a credit card citi card credit card payment american express credit card pay online india does dmv accept credit cards ny visa new credit card technology credit cards and college students statistics citibank visa signature credit card india aaa credit card bank of america sign in citi govt credit card payment credit card digits on back alaska air credit card rewards best credit card with balance transfers how do pos credit card terminals work how to make a small credit card holder annual credit card fee find a credit card by credit score jet airways credit card offer td bank travel credit card prepaid visa credit cards canada do i need to use my credit card to rebuild credit what is the best credit card for someone with no credit history melbourne taxi credit card surcharge free platinum credit cards in india monopoly credit card game how long to keep customer credit card slips credit card debt relief act wiki formula credit card companies use calculate interest do they sell prepaid credit cards cvs pay rooms to go credit card bill iphone 5 credit card case white how to play credit card roulette chase continental presidential plus world credit card review transfer money credit card bank account paypal bank of america business credit card offers credit card gas station clear button low apr rates on credit cards credit card american express delta best business mastercard credit cards deutsche bank credit card india offer choose credit card processing provider aeropostale credit card payment maybank credit card center malaysia how much will my monthly payment be on a credit card does sallie mae accept credit card payments rebate credit cards canada zero interest transfer credit cards posb credit card promotion 2011 pay stage credit card bill online aarp credit card rewards credit card limits illegal best deal gasoline credit card printable manual credit card slips rights regarding credit card debt preloaded credit cards walmart credit card list wiki credit card company sending refunds top ten interest free credit cards student credit card rbs sovereign bank student credit card
Home MLB Network / Extra Innings Extra Innings Deal Makes Poor Long-Term Business Sense

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 354 guests online

Atom RSS

Extra Innings Deal Makes Poor Long-Term Business Sense Print
User Rating: / 23
PoorBest 
Written by Maury Brown   
Wednesday, 28 March 2007 06:21

Maury BrownYesterday saw several principle players in the Extra Innings saga testify before the US Senate Committee on Commerce, Science, and Transportation at a hearing entitled Exclusive Sports Programming: Examining Competition and Consumer Choice. Rob Jacobson President and Chief Executive Officer for iN DEMAND Networks, Bob DuPuy President and Chief Operating Officer for Major League Baseball, Chase Carey Chief Executive Officer for DIRECTV Group, Inc., and Carl Vogel President & Vice Chairman EchoStar Satellite L.L.C. all had time at the microphone.

As the prepared statements provided here on The Biz of Baseball show, there are some key facets—namely the upcoming The Baseball Channel—that are creating the impasse on getting all the incumbents in a place to carry Extra Innings.

In a nutshell, DirecTV has offered to pay for the rights to show The Baseball Channel up-front, and now. Given the fact that ratings for NFL Network have not exactly been stellar (the heavily hyped debut game on the fledgling network pulled an averaged 4.2 million total viewers and a 2.3 household rating according to Nielsen, nearly one-third what Monday Night Football pulls on ESPN), you might understand why Robert Jacobson of iN Demand offered up a compromise deal in his opening statement. “If The Baseball Channel launches in 2009, we would give MLB the right to cancel the Extra Innings deal if it cannot reach a satisfactory agreement for carriage of the new channel with our owners,” Jacobson said. “This would put off the issue of The Baseball Channel until it actually launches and ensure that for the next two years at least, all baseball fans will have access to the Extra Innings package.”

After the statement was made, Sen. John Kerry (D-MA) asked Bob DuPuy, “"What's the matter with that?”

Well, here’s what’s the matter with that: If MLB re-negotiates with iN Demand, MLB has to renegotiate with DirecTV, and possibly EchoStar if they get onboard. The exclusive deal takes the risk off MLB and places it on DirecTV. As mentioned, if ratings for the NFL Network are not high by comparison to games shown on ESPN, how will MLB fair? After all, the NFL enjoys a vastly more popular product. Also, by DirecTV offering an up-front payment as opposed to iN Demand’s offer make The Baseball Channel available on a per subscriber basis, MLB has those funds available for any start-up costs involved in launching The Baseball Channel.

(Select Read More to view the rest of Maury Brown's article) 

Back to iN Demand, it seemed more than a bit ironic that they played themselves up as the “good guys” in this deal. After all, there are exclusive deals for cable that involve the Mets, White Sox, Padres and Phillies. As reported by Richard Sandomir of the NY Times in late February:

The owners will also have their own interests at heart. The Mets are partners in SNY with two cable operators, Time Warner and Comcast; the White Sox and Cubs are also partners with Comcast in Chicago. The Atlanta Braves are caught between being sold by Time Warner, which owns cable networks like TBS, to Liberty Media, which is taking over DirecTV.

The Padres' cable games are not licensed to satellite, so if their local fans switch to DirecTV to continue to watch Extra Innings, they will not get their own team's games unless they buy both services.

Comcast SportsNet in Philadelphia is not delivered by satellite as most regional sports networks like YES and SNY are, which leaves 300,000 or more DirecTV subscribers (at least 50 percent more than total national cable subscribership to Extra Innings) in that market without access to those cable games. Comcast's refusal to put its sports network on satellite has been challenged by DirecTV and EchoStar but affirmed by the federal government.

So, it’s not as if cable isn’t playing a roll in the exclusivity matter, as well. It should be interesting if you live in San Diego, have to watch the Padres on cable due to an exclusive deal with Cox, and you want to watch Extra Innings. In that instance, it appears you’ll have to have DirecTV, AND cable.

As for DirecTV, Chase Carey provided some analysis by dartboard. “DIRECTV estimates that there are relatively few viewers – no more than three percent of the cable segment (approximately 180,000 Extra Innings subscribers) – who cannot receive DIRECTV service,” Carey said in his opening statement. “This translates to roughly 5,000 subscribers – each of whom can access the games over the Internet.”

This is analogous to saying, “When a breeze blows through pile of leaves, 5,000 of them will be displaced.” It’s wholly arbitrary. How Carey and DirecTV came about this figure had to come with sticking their finger in the wind, but it did, none the less, create a case where the figure will be published and the myth will, in time, become engrained as revisionist history.

The other issue that got a lot of play regarded MLB’s willingness to offer a 20% ownership equity in The MLB Channel to DirecTV, while not giving this same offer to the incumbents. As Carl Vogel of EchoStar said, “However, in its entirety must be apples to apples, which will require EchoStar to acquire a pro-rata ownership of The MLB Channel,” Carey said in his opening statement. “In a letter dated March 22nd, from Major League Baseball, they state they are not in a position to offer any equity in connection with this ‘opt-in’ opportunity without DirecTV’s consent. It will be interesting to see whether that consent is forthcoming, and with what conditions, as DirecTV reconciles whether it wears its ownership hat for the MLB Channel or its hat as a competitive distributor.”

While DISH has seemed almost a secondary player in all of this, word came late yesterday by way of the Sports Business Journal, that EchoStar has offered up, what they feel, matches MLB’s terms as it pertains to financials, and distribution. For the deal to fly, EchoStar is asking for an ownership stake in The Baseball Channel, as well. The sides were reportedly mulling the offer over.

The biggest question is, what is MLB’s endgame in all of this?

As I’ve reported before, the exclusive deal does not make good long-term business sense. Limiting viewers is a poor growth model, beyond the ill-will that has been created in this process. No matter how many times you turn the deal over in your head, one asks if by not making the deal exclusive, if MLB would have come out financially in the long run.

iN Demand offered $70 million per-year in a non-exclusive arrangement. If DirecTV offered half of what they are offering in an exclusive arrangement ($50 million), MLB would come out $20 million a year ahead of where they are now, and that’s without DISH in play. Maybe it’s a matter of driving consumers to MLB.TV. After all Bob DuPuy said yesterday, “If iN Demand and Dish choose not to step up to the plate as DirecTV has done, fans will still have several options.  They can switch to DirecTV, they can subscribe to MLB.TV and watch the games on the Internet, and they can watch the roughly 400 games that every fan in every Major League market has available without the out-of-market package.” That’s convenient. MLB will pull in revenues from the displaced through their online offering. Still, is it going to be enough to offset the revenues that could have been pulled in by keeping all the incumbents in the fold?

Added to this, there is more of the “ill-will” factor as it pertains to the relationship that MLB needs to keep with cable. Is it simply not a matter of time before MLB comes to cable looking to get The MLB Channel carried?

So, to repeat, the deal makes poor long-term business sense, outside of fan ill-will.

Lastly, I should note (once again) that I’ve been a DirecTV subscriber for some time and chose to do so for reasons outside of Extra Innings. Still, I’ve subscribed to EI in the past, and will continue to do so in the future. With that, and the season on the cusp, I looked up the schedule. Sunday, there was a limited slate of games on tap. Now, DirecTV is showing a more complete slate of games to choose from. At least that’s one less matter to be critical of in what might be deemed “ExtraInningsGate”.

 Maury Brown is the founder and president of The Biz of Baseball and an author for Baseball Prospectus. He can be contacted here. 

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?