MLB Anti-Trust suit (TV rights, local blackouts, etc)

[Baldkin]

http://www.fangraphs.com/blogs/the-impending-battle-over-the-future-of-televised-baseball/

 

Not only do the plaintiffs allege that the creation of these exclusive territories illegally prevents MLB teams from competing for television revenue in each others’ home markets, but they also contend the rules restrict teams from competing with the league itself in the national broadcast marketplace (preventing teams from signing their own national television contracts, for instance, or offering their own out-of-market pay-per-view services in competition with MLB Extra Innings and MLB.TV).

 

Thus, the Garber suit presents a direct challenge to MLB’s existing television business model, one that could revolutionize the way in which baseball is broadcast in the future.

 

Surprised this hasn't gotten more attention around, well, everywhere. Being a guy who refuses to play for cable, and uses a VPN to watch the Brewers on MLB.tv's streaming service, I'm rooting against MLB on this one....

 

Although the economic result of non-localized TV deals could be very interesting, and cause our local MLB team to fall even further behind the giants (Yankees, Red Sox) of the industry.

[BrewersAA]

I have simply never understood why streaming is affected by the TV restrictions. I live in Oklahoma city therefore I blacked out when the Brewers play the cardinals, Astros, Rangers, Royals, and Rockies. I don't have cable, I stream, 2 different things, so the logic of the blackout funneling me to the "local" stations doesn't apply. But even more frustratingly, living in a market that's pro team sized, without a pro team, leads to every team and their brothers 'claiming' it. Here's the problem, even with local cable, the game is rarely broadcast because there is generally and actual local event on the fox sports broadcast. It's often made me wonder why I buy the package every year. I will be routing against MLB in this one myself.

[CheezWizHed]

There is an acorn of sense in the TV restrictions, buried un a mountain of stupidity and greed.

 

It starts off with wanting the local people to show up at the game (or only watching it if sufficient attendance occurs).

 

But then the definition of local becomes absurd. My in-laws (in NW Iowa) are blacked out. Its an 8 hour drive to Milwaukee, but they are considered "local". Not to mention the whole area is Twins and KC fans...

 

Pile on if you buy MLB ticket for satellite or streaming, you are actually paying for it. So its not a ticket sale, but you are still spending money that will go to that team.

 

What ever to make a buck...

[Vgmastr]

It's not so much that they want you to go to the game, it's that MLB is making gobs of money on TV deals. Sports are one of the few things left that are DVR-proof, people want to watch them live, so networks are willing to pay a premium for the right to air the games. MLB doesn't want to hurt that revenue source by allowing people who live in the market to cancel cable and stream the games. That's why they only allow out of market streaming. If you're in Arizona, you're not hurting FS Wisconsin's ratings by streaming because you don't have access to it. The big issue is getting rid of blackouts for areas that don't have access to the game locally. Like in CheezWizHed's example above, Iowa is considered the home market for six different teams. That would be fair if they got all six of those teams' games locally, but they don't, so the blackout there makes no sense.

[pacopete4]

It's not so much that they want you to go to the game, it's that MLB is making gobs of money on TV deals. Sports are one of the few things left that are DVR-proof, people want to watch them live, so networks are willing to pay a premium for the right to air the games.

 

I used to be this way but I do find myself DVR'ing games and starting them later and catching up to the game by the 6th-8th inning and then watching it live. Saves me a little time when I have things going on.

[owbc]

Indications are that MLB is working behind the scenes to improve things. Local streaming on Fox Sports Go will be a nice improvement this year, assuming the deal goes through (haven't heard anything about this in a while). If that happens, you won't need a VPN to stream the Brewers locally if you have a cable password.

 

The single-team out-of-market streaming option doesn't seem like much of an improvement although they haven't released the price yet.

 

Still waiting for the other shoe to drop on cord cutting. I think we're getting close. It's getting easier for non-sports fans to get everything they need via streaming without a cable contract. Although sports are incredibly valuable to advertisers, the fact remains that non-sports watchers continue to subsidize sports channels in cable TV packages. Eventually MLB is going to have two options--1) accept lower revenues initially in exchange for making games more easily available, or 2) have a prohibitively expensive TV/streaming package that only appeals to diehard fans. With the increasing cost of cable and blackout rules, they are already headed down road #2. Plus it's almost impossible to get businesses to sacrifice revenue now in exchange for some unclear future benefit. The idea of "casual" sports fan may disappear entirely from MLB if things do not change. Just look at the NHL after they started getting ignored by ESPN.

 

Because of the high value of advertising during live sports events, it is my opinion that MLB streaming should be FREE--all 30 teams and no blackouts, period. The best way to grow the sport in the long term is to remove all barriers to viewing.

[502 to Right]

I think the internet streamers are going to kill the golden goose.

[CheezWizHed]

It's not so much that they want you to go to the game, it's that MLB is making gobs of money on TV deals.

 

Going to the game was how it all started (the acorn of sense). But its changed into making gobs of money now, which leads to the nonsensical rules of today.

[JackNicholson1974]

Radio is still free. Oh yeah!! I stream baseball radio feeds and NHL radio feeds for next to nothing.

 

I tried cutting the cord and piece-mealing local sports and after I ran the numbers it wasnt worth it. It added up to a lot of trouble and close to no savings. I pay $50/mo for internet and that is all I have at my house. I really wanted to have access to Baseball (Brewers) and Hockey (Wild). Set aside the local blackout restrictions that make MLB TV and NHL Game Center worthless for local teams, even if I could buy both and get my local teams I would be looking at, spread over the full year $11 per service, so $22.00. Making my total expenditure $72.00. I could add the basic cable, plus a box, keeping internet for around $87.00 a year. So the $15.00 savings really isnt worth it to miss out on some other cable channels I might actually watch.

 

I dont know who or what I am rooting for.