Ladies and gentlemen: to get you through the inevitable post Super Bowl lull, let's introduce a topic that never fails to entertain.
Let's bash Bud Selig.It does seem sort of pointless, I'll admit. Throwing stones at Mr. Selig is about as original as questioning the Chicago Bears' quarterback depth chart. But like the Chicago Bears' quarterback, Mr. Selig keeps asking for it.
The latest evidence: Major League Baseball's reported exclusive deal with DirecTV.
In case you missed this story, Major League Baseball is reportedly close to a deal that will make the Extra Innings package -- a premium service that allows subscribers to watch out-of-market games -- an exclusive service of DirecTV. Why is this today's ammunition for the Bud-Bashers? Let us count the ways:
- Moving the package to DirecTV exclusively immediately slashes the number of potential subscribers. Approximately 90 million American homes subscribe to cable or satellite TV, Bob Raissman of the New York Daily News reports. Only 16 million subscribe to DirecTV. While some may choose cable over satellite, many others simply cannot get DirecTV due to housing restrictions (such as the inability to install a dish in many apartment buildings) or physical obstructions (trees, mountains, other buildings) that block the signal.
- In the same article, Raissman reports that MLB is leaving a significant amount of money on the table by giving DirecTV exclusivity. The DirecTV deal is worth a reported $100 million per season. Meanwhile, a company called InDemand, negotiating on behalf of the major cable providers, has offered $70 million per year for the right to re-sell the Extra Innings package -- without demanding exclusivity. Do you think multiple non-exclusive deals with InDemand, DirecTV, Dish Network and all the other smaller players would ultimately total more than $100 million?
- Even if this was a smart business decision (and we think points one and two prove that it's dubious at best), this deal is an open invitation for Congress to start sticking its collective nose into the business of baseball yet again. Senator Arlen Specter has already made noise about eliminating the NFL's Anti-Trust exemption because of that league's exclusive deal with DirecTV.
If you'd like to prove them wrong, contact the league directly. The e-mail address is csmedia@website.mlb.com. (Thanks to the FishStripes blog for the contact info.)
Originally published at About Baseball
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