MLB EI Press Release: read it yourself and skip the BS

[jpn]

Another thread has 5 pages without a single quote.... is it all BS, a giant conspiracy against the good guys from Dish? Is it all a blatant attempt to pull the rug out from Champion Charlie, protector of innocents and empty pocketbooks the world over? Is stink so deep you need boots? Or is it what it appears: that D* has replaced InDemand as the exclusive distributor of EI? Read and decide for yourself.

http://phx.corporate-ir.net/phoenix.zhtml?c=127160&p=irol-newsArticle&ID=972143&highlight=

MLB, DIRECTV Extend, Expand Multi-Year Agreement Deal Includes Launch of The MLB Channel, Carriage Rights to MLB EXTRA INNINGS PackageNEW YORK--(BUSINESS WIRE)--March 8, 2007--Major League Baseball and DIRECTV, the nation's leading satellite provider, today announced a seven-year agreement that continues carriage rights to the MLB EXTRA INNINGS subscription package of out-of-market games and includes the launch of the MLB Channel as part of DIRECTV's basic package. Included within the agreement, DIRECTV will be a minority partner in the MLB Channel, and will work with MLB to develop the network, which will launch in 2009.​

Additionally, in keeping with MLB's desire to provide as much MLB programming to as many baseball fans as possible, MLB and DIRECTV have agreed to include a provision that allows MLB EXTRA INNINGS to be offered to other incumbents - In Demand and DISH Network - at consistent rates and carriage requirements with a deal to be concluded before the baseball season begins. The provision also requires the incumbents to agree to carriage rights to the MLB Channel proportionally equivalent to DIRECTV's commitment. Should the incumbents decide not to match DIRECTV's commitment, the MLB EXTRA INNINGS package will be exclusive to DIRECTV. All out of market games continue to be available on MLB.com.​

"With the advent of The MLB Channel, our new agreement with DIRECTV will result in more MLB programming being available to more fans than ever before," said Major League Baseball President Bob DuPuy. "The deal complements our deals with FOX, Turner and ESPN for network game coverage and furthers MLB's initiative to continue to enhance fans' viewing experience and reinvigorate our telecasts with unique and innovative features."​

"Just as we did with NFL SUNDAY TICKET and NASCAR HOTPASS, DIRECTV will invest millions of dollars to deliver a spectacular fan experience," said Chase Carey, President and CEO of DIRECTV. "DIRECTV will offer more games in HD and apply its award-winning technology to MLB EXTRA INNINGS broadcasts on an unprecedented scale, taking fans deeper inside the game than ever before."​

DIRECTV, continuing its 10-year relationship with MLB and its fans by providing MLB EXTRA INNINGS, will bring new innovations that will enhance the fan experience. The MLB Channel will be the first and only network dedicated to providing baseball programming to MLB fans 24 hours a day, seven days a week on a year-round basis.​

DIRECTV will expand the MLB EXTRA INNINGS options to include a game mosaic channel, a Strike Zone Channel that takes viewers to live cut-ins of MLB games in progress at key points; detailed player and team stats, real-time scores and live updates from other games; and other innovations that complement the sport of baseball, entertain viewers and provide fans with a great entertainment value. Beginning in 2008, DIRECTV will provide most, if not all, of the package in High Definition.​

Major League Baseball will continue to make available more games by far than any other sport on national and local over-the-air broadcast, basic cable, and satellite. On average, approximately 400 game telecasts are available in each market every season. Fans will continue to be able to watch their home club's games in their home markets. This agreement will not affect MLB's national agreements with FOX, TBS, and ESPN, nor does local game telecasts.​

The MLB Channel will launch in 2009 on DIRECTV, ensuring that the Channel is immediately available as part of DIRECTV's basic service. DIRECTV's commitment to carry the Channel as a basic service to more than 15 million homes was a major factor in the long-term agreement between the provider and MLB.​

"We are quite pleased with the commitment DIRECTV has made to MLB and our fans, and in the coming weeks will continue our efforts to secure corresponding commitments from our incumbent distributors," said Tim Brosnan, Executive Vice President/Business, Major League Baseball.​

Last year, more than half of the subscribers of MLB EXTRA INNINGS were DIRECTV customers. MLB.TV, MLB's broadband package, will continue to be available to all consumers through the Major League Baseball website, www.mlb.com, offering upgraded picture quality this season.​

 

[Jhon69]

Think MLB is telling everyone to put up or shut up.

 

[jpn]

Think MLB is telling everyone to put up or shut up.

Quite possible. Exactly what must be "put-up" has not been declared.

 

[Scott Greczkowski]

And thats the argument point, is it $100 million from everyone who ats to play? Or is the cost split between the 3 parties?

And if they costs are the same or equal then are Dish and Cable allowed to access the features such as mosiac, the strike zone channel or those only for DirecTV.

As I said yesterday this was one of the questions asked on the call and no one had an answer from DirecTV or MLB, and then they got upset that folks were asking these types of questions.

 

[jpn]

And thats the argument point, is it $100 million from everyone who ats to play? Or is the cost split between the 3 parties?

And if they costs are the same or equal then are Dish and Cable allowed to access the features such as mosiac, the strike zone channel or those only for DirecTV.

As I said yesterday this was one of the questions asked on the call and no one had an answer from DirecTV or MLB, and then they got upset that folks were asking these types of questions.

Why should negotiations between private companies be held in the media? When push comes to shove, E* and the cables can ask for Federal intervention if the offering price is an off-the-chart deal. The only thing that matters is whether E* or cable can offer it to its customers at a reasonable cost. The rest is nobody's business.

As for the extra features, it's somewhat a matter of who provides them. As I understand it, D* is getting the game feeds from MLB. The interactive content, strike zone channel, mosaic are all D* value-adds. Those are being sold to D* customers at a premium. If D* offers those to E* or cable, it's D*'s to price. If it's not offered, what is keeping E* from adding their own? Aren't they capable of handling customized content?

Besides, now you've gone from fans being deprived of their team's games, to demanding a slice of a D* investment in value-add. Are you asking for access to game feeds, or the keys to the kingdom?

The media is known for asking stupid questions and making stupid statements. Pointless and stupid interview questions in pro sports happen after every big game. It seems the larger the number of viewers, the dumber the questions. IMO, it's a stupid question if the media asks for that kind of detail.

 

[billybill]

The put up will be the MLB channel on a providers basic package. Similar to when IN Demand required the satellite providers to pay for INHD based on all digital subscribers.

 

[Scott Greczkowski]

it's a stupid question if the media asks for that kind of detail.

Its only a stupid question because you say it is.

You can call Senator John Kerry at (617) 565-8519 or (202) 224-2742

Its America's Game, not DirecTV's.

 

[jpn]

Its only a stupid question because you say it is.

You can call Senator John Kerry at (617) 565-8519 or (202) 224-2742

Its America's Game, not DirecTV's.

John Kerry is a worthless poser. And last time I checked, MLB owns rights to its games and is free to sell as they wish. That has not changed in 60 years of TV.

 

[jpn]

Has anybody seen ESPN's take?

http://sports.espn.go.com/mlb/news/story?id=2792214
The MLB quotes are from Bob DuPuy, CEO of MLB.

DirecTV will make The Baseball Channel available when the network launches in 2009, and DirecTV will be a minority partner in the network.

"The provision also requires the incumbents to agree to carriage rights to the MLB Channel proportionally equivalent to DirecTV's commitment," baseball said in a statement. "Should the incumbents decide not to match DirecTV's commitment, the MLB 'Extra Innings' package will be exclusive to DirecTV."

That appears to mean Time Warner Entertainment-Advance/Newhouse Partnership, Comcast InDemand Holdings Corp and Cox Communications Holdings Inc. -- InDemand's owners -- would have to agree to carry The Baseball Channel on the same tier as DirecTV and not a narrower one.

"We have an exclusive arrangement, if that's where it ends up. If these guys take it up in this window, we have a non-exclusive arrangement that works for us," Carey said. "It's significantly less money for the non-exclusive arrangement."
​

We know that D* has a contractually-granted right to sell the product along certain terms. We DON'T know whether they have the contractual right to negotiate-down from those terms. They probably do, it would be foolish for them not to be able to recover a smaller portion of their costs.

Sub counts aside, D* is going to need some return on investment from EI. D* isn't going to double the subscriber base by keeping it exclusive, and they will lose subs if they push the price too high. That's a bad business mondel.

Re: conditions, it's possible that in addition to 24x7 carriage of MLB channel on a BASIC tier, dish & cable might need to invest in the channel as partners. Since they have not published the legal-ese we're all still speculating. E* has always had a problem paying for content. Cable pays for content, but prefers to charge a premium for channels like this.

IMO, it's not up to D* to disclose its terms to the public. However, if E* or cable operators opt-out, then they should be prepared to answer their subscribers as to why they opted-out. One key is whether InDemand and E* choose to approach D* as a negotiation, or just point fingers and make noise.

 

[RFtech]

This is the time that Directv should take the bull by the balls and straighten out the Philadelphia market. Like no MLB on Philadelphia area cable. Don't allow comcast anything until they release CSN to Directv and Dish.

 

[bidger`]

John Kerry is a worthless poser.

:up