2 cialis 20 mg viagra generic nl opiniones cialis generico prednisone taper 60 mg doxycycline 50 mg australia generic options propecia 100mg zoloft withdrawal propranolol 20 mg dosage antibiotic cipro 500mg wellbutrin generic version generico cipro xr 1000 metformin pcos mg doxycycline 100mg gerd metformin 500 mg ratiopharm generic metformin names generic name cialis discount viagra 50mg nome generico propranolol cialis online store 1000 mg metformin pregnancy erythromycin 500mg alcohol cialis 10 mg beipackzettel cialis 24 mg uk cialis online propecia 5mg order viagra online original tetracycline 250 mg dosage buy lexapro cod cialis 20 mg wallgrens viagra online review xenical 120 mg cheap cialis generico prezzi metformin 1700 mg levitra india buy how viagra 800mg cialis generic 20 mg cialis 20mg bangkok cytotec 50 mg pfizer glucophage 500 mg tablets generic wellbutrin watson valtrex online pharmacy buy cialis bali lisinopril generic celebrex 25 mg buy synthroid order viagra 150 mg generic levitra legitimate viagra versus generic kamagra gold 100mg generic chewable viagra online viagra uk cialis 5mg ausreichend 1000 mg glucophage xr cialis 4o mg diflucan 180 mg 5mg prednisone dosage generic viagra ray cipro 750 mg bid generic viagra 16 buy viagra 800mg zoloft 50 mg opinioni cialis 5mg price cialis vendita online glucophage 500mg preis cheap viagra expensive viagra jet online vidal xenical 120 mg frozen zithromax 200mg cialis 20 mg 2 tablets celebrex 200 mg buy buy nolvadex ireland 800 mg black cialis cheapest cialis malaysia buy generic wellbutrin medicamento lexapro 15mg lexapro dosage 70 mg nolvadex generic tablets generic viagra vs prednisone generic drug lexapro generic alcohol buy zithromax antibiotic taking 20mg levitra liquid nolvadex mg prednisone 5mg propecia 1 mg 90 tablets lexapro generic alternatives cialis cheap Washington vanzare viagra online 2012 lexapro 15mg generico phenergan 25 mg insomnia xenical apotheke online viagra online apotheker cialis 20mg n2 buy nolvadex india cheap levitra sale 5 mg prednisone pregnancy viagra seal online wirkungsweise cialis 5mg celebrex celecoxib 200 mg prednisone 40 mg pregnant clomid 50mgs augmentin 500mg uses le nexium 20mg propranolol bula generico levitra 10 mg orosolubile 5mg lexapro pill propecia generic version propranolol 40mg ansiedade amoxil capsule 500mg order lasix cheap levitra 20 mg 8 doxycycline 100mg kopen online medications viagra zoloft 200 mg strattera 80 mg buy order nexium 40mg order viagra samples generic cytotec 200 mcg viagra online xlpharmacy prednisone 20 mg 10 days cialis 5mg oad viagra online quality buying viagra beijing lisinopril cinfa 20 mg doxycycline online mastercard lily cialis 20mg augmentin 50mg viagra 50 mg phuket prednisone 5mg bronchitis lexapro buy canada diflucan 150 mg forum blueberry 100 mg viagra pharmacy viagra generic nexium 40 mg generika augmentin 875 mg prices cialis 5 mg citalopram generic viagra klonopin online viagra prices cialis 20mg 121doc levitra 10 mg kullanimi nolvadex 25mg fake clomid australia online buy 5 clomid tablets erythromycin 500mg indications buy cialis johannesburg cialis generic 10mg germany viagra online bactrim 240 mg cialis 20mg pakistan generic cialis 2.5mg levitra online a viagra 100 mg 4 comprimidos cialis 10mg fta generic viagra manufacture buy clomid cheap florida metformin 850 mg online lexapro zoloft generic brands cipro 1a 250 mg legal clomid online cipro 200 mg generico zithromax 250 mg vidal overview diflucan 150 mg buy viagra kuala glucophage xr 500 mg mg propecia 50mg clomid daily buy 20mg cialis walmart levitra 20mg augmentin suspension 457 mg costo levitra 20 mg generic lexapro formula lexapro 30 mgs viagra onlineutah prescription viagra online generic viagra 600mg xenical en generico lisinopril 20 mg rx 534 nolvadex 10mg men doxycycline mono 50 mg viagra 25 mg effects levitra 10 mg duracion buying viagra spain viagra 100 mg 10 prednisone 60mg sidefects estonia generic cialis viagra 100mg phiser cheap australian viagra viagra generic uae augmentin 875 mg dose efeitos viagra 100mg buy legal nolvadex wellbutrin 75 mg cost zithromax 100mg sachet generic lisinopril mylan viagra generic company priligy order generic super viagra phenergan tablets 25 mg generic viagra brasil amoxil tablets 250mg cheap 50 mg viagra cialis 10 mg beter viagra 10 mg zithromax buy cheap zoloft borderline personality buspar generic form zovirax 250 mg flakon cytotec buy usa lisinopril 2mg online consultation propecia 36 hour cialis mg buy viagra wien doxycycline 100mg dogs propecia msd online lisinopril 10 5 mg buspar 600 mg overdose cap doxycycline 100mg buy doxycycline sydney vanzare cialis 2.5 mg aciclovir 200mg zovirax cialis soft 5mg nexium 40 mg pills lexapro price 20 mg global generic wellbutrin cialis dosage 60 mg viagra trusted online viagra generic soft prednisone 200 mg pcos clomid 50mg generico viagra portugal metformin 1000 mg daily brand viagra 100 mg zovirax online australia buy erythromycin uk buy 20 mg doxycycline cialis 20 mg break viagra canada cheap tadalafila cialis 5 mg lexapro reviews 10 mg buy women viagra buy viagra fast lasix 400mg generic dari xenical clomid generic canada viagra 100 mg preis nolvadex 60mg start tab clomid 100mg com generic glucophage zithromax 1 gram 1000 mg tetracycline 100 mg buy strattera pharmacy cheap viagra pharmacy green viagra 3800 mg periactin uk buy diflucan 50 mg capsulas celebrex 200 mg tabs lisinopril 20 mg tablets doxycycline monohydrate 150 mg 500 mg of tetracycline cialis tablets 10mg xenical 120 mg price buy generic zithromax cialis 20 mg canadian lisinopril 40 mg lupi zithromax 500 mg vidal zoloft 100 mg levitra 40mg generic wellbutrin generic cost cheap cialis marbella tadalafil generic cialis nolvadex tamoxifen 10 mg buy cialis store generic levitra soft harga levitra 20 mg buy kamagra canadian nexium buy online order generic clomid propecia 1 mg cut levitra cheap usa cialis 20mg schweiz 10 mg prednisone withdrawal nolvadex buy tamoxifen buy valtrex australia zovirax 200mg capsules nexium 20 mg canada phenergan 25 mg nausea cialis compresse 5 mg cialis dose 30 mg levitra 5mg alcohol 20mg cialis boner cialis 2.5 mg effectiveness generic propecia buy cialis 5mg tadalafil cialis 15 mg zithromax 600 mg egypt levitra 5 mg costo cialis 5 mg treatment buy zithromax iv 150mg sr wellbutrin prednisone 20 mg information cialis 100 mg fiyatlari kupim cialis generic 20mg cialis pills fake cialis online generic viagra manufactures xenical 120 mg contraindicaciones zoloft 50mg nexium 40 mg diarrhea synthroid 100 mg cost 300 mg of zoloft lisinopril dosage 5mg purchase bactrim generic zoloft 100mg bula viagra femminile online generic lisinopril hydrochlorothiazide clomid ile mg zithromax online usa viagra 20mg ervaring arret zoloft 25 mg viagra online legal augmentin zawiesina 457 mg propecia cheapest price uk cheap kamagra prednisone 5mg 3 days prednisone 10mg day 200 mg of diflucan metformin 500 mg kosten buy dapoxetine london 35 mg levitra dangerous doxycycline 100mg birds xenical 120 mg rezeptfrei levitra going generic celebrex 200 mg generic 200mg zoloft daily purchase Levitra 10 mg cheap levitra tab clomid 100mg au bactrim 800 buy prednisone 5mg cancer buy amoxil 50 mg lisinopril 10mg buy cipro antibiyotik 1000 mg effet 40 mg cialis buy kamagra liverpool cipro online order prednisone stopping 20mg viagra 150 mg cipla genuine 5mg cialis diflucan 150 mg n1 cheap lisinopril 20 mg cipro 500mg dosing sildenafil 100mg viagra free viagra 150 mg 20 mg cialis break zoloft sale online levitra 20 mg billiger cialis tablets cheapest zoloft 50 mg cost levitra 30mg etkisi nolvadex generic name prednisone 20mg pills levitra 20mg directions zithromax 250 mg preis nolvadex 20 mg pills diflucan tablets 100mg omeprazole 20 mg nexium lisinopril biogaran 20 mg zithromax 250 mg n1 buy zithromax capsules propecia finasteride generic aurochem generic cialis comprar viagra 25mg prednisone uses generic clomid online buy generic lexapro date kamagra 100 mg contrareembolso generic cialis 200 mg cialis 20mg bula buy cipra cialis round 200 mg bactrim clomid 150mg ovulation kamagra 100 online kaufen cheap 25mg viagra glucophage nombre generico online pharmacy tetracycline buy metformin 500 mg buy cialis bangkok thyroid synthroid generic wellbutrin generic manufacturers 7 mg prednisone viagra sale 25mg assunzione cialis 20 mg diflucan online shopping propecia cheapest kamagra 100mg discount buying generic cialis viagra online argentina glucophage 300 mg levitra 20mg fta 4 500 mg diflucan generic viagra shop levitra orodispersible generic generic problem viagra took 2 cialis 20 mg brown viagra 150mg buying viagra 4 pills cialis 50 mg tablets lisinopril 10 mg ulotka viagra 150 mg paypal viagra buy amoxil 125 mg 5 ml lisinopril 40 mg 4214 v propecia generic same cialis 2.5 mg holland levitra 10mg 4st viagra generic oscommerce xenical online sale buy metformin 850 mg order hydrochlorothiazide 25 mg buy xenical malaysia clomid 50mg dosage buy viagra cod 1750 mg of augmentin viagra femenina online order zithromax generic 36hr cialis cialis cheap 10 mg fake viagra 100mg 100 mg cipro online buy 10 mg cialis buy kamagra thailand periactin generic brand lisinopril 5 mg nebenwirkungen generic lexapro difference generico viagra preco valtrex order canada pastillas cytotec genericos levitra 20mg erfahrungen viagra generic 50 mg xenical buy singapore 5 mg cialis review viagra 50mg walgreens clomid nolvadex online cialis 200 mg price strattera borderline buy online viagra buy online nolvadex 604 cheapest levitra online diflucan generic fluconazole order viagra lexapro 5 mg day prednisone taper 20mg hyclate doxycycline 100mg buy propecia philippines priligy 30mg malaysia lexapro generic paronia 50 or 100mg viagra viagra pesni online buy bulk cialis prednisone 40mg sciatica nexium 40 mg kullanim prohormones clomid 50 mg indikasi lisinopril 10 mg lexapro 10 mg tablet 100 mg phenergan 75 mg phenergan valacyclovir valtrex generic xenical 250mg malaysia buy viagra belfast zoloft mg doses amoxil 100 mg cats doxycycline mg malaria generic augmentin dosing coupons generic cialis celebrex prospect 100mg online tablets viagra colombian viagra generic viagra onlines generic viagra 26 cialis zoloft generic reviews levitra half 20 mg 400mg. viagra cheap 5mg cialis diflucan online buy cheap propecia nexium dosierung 40 mg metformin 10000 mg valtrex generic discount 200 mgs. viagra online cheap viagra cialis 20 mg dosing doxycycline 500 mg tablet nexium generic sale viagra sells online zovirax 200mg dosing doxycycline mono 100mg prednisone 50mg price levitra 20mg vardenafil celebrex celecoxib 400 mg
Home Pete Toms LWIIB: What Does a Drop in Cable TV Subscribers Mean for MLB?

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 963 guests online

Atom RSS

LWIIB: What Does a Drop in Cable TV Subscribers Mean for MLB? PDF Print E-mail
User Rating: / 9
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 29 November 2010 15:44

Last Week in Bizball by Pete Toms

This week in “Last Week in BizBall”, what does a drop in cable TV subscribers mean for MLB? plus tidbits.

According to MLB, 2010 revenues are expected to be near the $7 billion mark, a record for the league and up slightly from the, then record, $6.6 billion of 09. This despite a decline in attendance of approximately 0.5 % over 09, furthering a trend that has seen fewer fans in the ballparks for the third consecutive season. Revenue from ticketing this past season is expected to be down more than the 0.5% decline in attendance, due to extensive “discounting”. Nonetheless, presumably, ticketing remains the single largest source of revenue for MLB. So, if ticketing revenue is down, where is the growth? The infamous “leaked financial docs” of this year revealed that despite all the hype over digital revenues in MLB, as recently as 08, each club received a dividend cheque of $2 million from MLBAM, a relatively small amount. The steady growth in industry revenues for MLB appear to be driven by local TV rights. Clubs have been routinely signing long term guaranteed deals with RSNs for hundreds of millions of dollars. In addition, at least several clubs have acquired equity in RSNs owned and operated by Comcast. Other clubs have launched their own RSN. MLB has their own cable channel, MLB Network, which is owned in part by the cable consortium iN Demand. Programmers and cable operators have seen live sports as key to their offerings in this era of Over-The-Top TV and MLB has profited handsomely. (see more here)

The growing importance of cable TV within the sports industry is not limited to MLB. Fewer and fewer games are available on local “over the air” channels as sports continue to migrate to the more lucrative “dual revenue” (sub fees and ads) model of cable TV. As the financial health of MLB, and the other of the “Big 4”, is increasingly tied to cable TV, developments earlier this month might be cause for concern. On November 17, SNL Kagan announced that the third quarter of this year saw an unprecedented drop in the number of cable TV subscribers (Read the release - PDF). This marked the second consecutive quarter of decline.

SNL Kagan estimates U.S. cable operators lost 741,000 basic video customers in third-quarter 2010, marking the single largest quarterly dip for cable since SNL Kagan began compiling data for the segment in 1980. Cable MSO’s share of combined video subscribers continues to slide, dropping to 60.3%, versus 62.9% in third-quarter 2009.

AND

Operators are pointing to a continuation of the forces that pushed subscriber gains into negative territory in the second quarter, including the weak economy, high unemployment and elevated churn of former over-the-air households,” said Ian Olgeirson, senior analyst at SNL Kagan. “However, it is becoming increasingly difficult to dismiss the impact of over-the-top substitution on video subscriber performance, particularly after seeing declines during the period of the year that tends to produce the largest subscriber gains due to seasonal shifts back to television viewing and subscription packages.”

In response to the declining number of cable TV subscribers, Time Warner Cable announced a new offering in their NYC and northern Ohio markets called TV Essentials. This new package is aimed at consumers most affected by the recession and includes local broadcast stations and major broadcast networks, as well as 12 of the top 20 highest-rated cable networks. What is most interesting to sports fans and the sports industry is what the TV Essentials offering does NOT include, namely, ESPN (it does include ESPN News) and Fox Regional Sports Networks. TV Essentials is the most recent example of the complicated relationship between sports programmers and cable TV. On one hand, sports programming is vital to the appeal and popularity of cable TV offerings. On the other hand, sports channels command the highest subscriber fees of any programming, inflating the price of cable offerings to non-sports fans. From Nat Worden at the WSJ:

"TV Essentials" may be particularly appealing to those who aren't sports fans, as ESPN and regional sports networks have collected rising fees from cable and satellite companies in return for their programming, driving up the cost of pay-TV.

"It's no secret that the most expensive programming is sports, and so in an effort to create a package that's less expensive, we've attempted to craft a bundle [for] people who may not want access to all the sports programming out there," said Mr. Britt. "Our market research says there are clearly people who are not big sports fans." (Note, Glenn Britt is TWC Chief Executive)

Some wonder if the increasing popularity of “over-the-top TV” will allow smaller cable offerings such as TV Essentials to succeed, where in the past, they have failed.

SELECT READ MORE TO SEE MORE, PLUS THIS WEEK'S TIDBITS

Martin Peers wrote in his analysis for the WSJ:

But this business model may be undermining itself. Consumers frequently complain about having to pay for a large number of channels they mostly don't watch. ESPN, for instance, averaged only 0.7% of the audience a day in 2009, according to Nielsen, below rivals like Nickelodeon.

And now that the array of cheaper online video is increasing, consumers have a choice.

While it is easy to understand TWC’s motives in offering TV Essentials (they are losing subscribers), perhaps more notable is the support of programmers in the initiative. Brian Stelter in the New York Times:

Craig Moffett, a senior analyst at Sanford C. Bernstein & Company, said it was significant that the Walt Disney Company, the News Corporation and other channel owners were cooperating in the trial. “In agreeing to support this package at this price point, the media companies appear to be acknowledging the importance of lower-priced offerings,” he wrote in an analyst’s note Thursday. (Note, Walt Disney Co. owns ESPN. News Corp. owns Fox)

If the cable TV universe continues to shrink and MSOs and programmers respond by offering more packages similar to TV Essentials, is MLB well positioned? Will the MLB partners in Comcast RSNs, the Cubs, White Sox, Mets, Phillies, Astros and Giants, be protected by virtue of partnering with the country’s largest MSO? Will MLB Network be similarly protected by their partnership with the iN DEMAND cable consortium? If “over-the-top” grows in popularity, it may be more advantageous to be on the cable side of the equation than the programmer side. Again, from Martin Peers: “Indeed, while cable channels will lose revenue if subscribers disconnect in favor of online video, cable operators will continue to make money from Internet access.”

Some interpreted the TV Essentials offering not as a response from TWC to watching TV shows over the internet, but rather the reality that a significant number of people cannot afford the current offerings of cable TV packages. Andrew Wallenstein reported for paidContent.org:

Bernstein Research weighed in on TWC’s move earlier in the day: “For distributors and Time Warner (NYSE: TWX) Cable specifically, this is an equally important development, in as much as it allows them to offer a package directly aimed at combating cord-cutting at the low-end. An enormous body of evidence suggests that cord-cutting remains primarily a low-end phenomenon, more typically a result of poverty than of Internet choice and convenience.”

While the overall future of cable TV and the role of sports programming in that future is critically important to the biz of baseball, fans also have much at stake. As televised sports, including MLB, disappear from “over the air”, are they increasingly accessible to only the middle class and up? There are approximately 116 million TV households in the country, approximately 100 million of those are cable or sat subscribers. Will the differences in those numbers grow? Of those subscribing to cable or sat, will fewer be willing to pay for sports programming? Is MLB a public good? If it is, should a minimum amount of it be made available to all Americans (ie. “over the air“)? Both culturally and commercially, the future of cable TV is key to the future of MLB.

TIDBITS

  • The New York Times was granted a motion to unseal an audio tape of a meeting in the chambers of bankruptcy judge D. Michael Lynn during the Texas Rangers Chapter 11 saga. Judge Lynn had very harsh words for one of MLB’s lawyers, Stephen J. Shimsak, who famously commented during a conference call that the league would “take over” (it was quite a bit cruder than that) the franchise if the bankruptcy didn’t yield the desired results. Chuck Greenberg, who fronted the group which eventually purchased the Rangers, was also scolded by Judge Lynn. “Early in the hearing, Lynn said that he would file an ethics grievance with the state of Pennsylvania, where Greenberg practices law, if he ever used his status as a principal in the case to discuss bankruptcy law in the news media.” The Judge, who displayed an enthusiasm for the tangential during the court proceedings, also said about baseball: “I don’t like what’s been done to it, with the designated hitter and interleague play and an interminable playoff,” he said. “But I used to love baseball, and I can talk baseball with — at least in terms of people like Whitey Ford and Bob Turley and their ilk — until hell freezes over.”
  • I missed it when it was announced a few weeks ago, but LWIB TicketNews.com brought my attention to the fact that the Oakland A’s will play a scheduled doubleheader next season. Not a day/night doubleheader but a real, genuine, scheduled doubleheader. According to the report, the good ol fashioned July 16 twinbill will be the first since 1996 in MLB.
  • Merritt Paulson still owns a Triple A franchise. Mr. Paulson wants to sell the franchise to Padres owner Jeff Moorad. Mr. Moorad wants to eventually locate the franchise in the San Diego suburb of Escondido. (with a stop in Tucson along the way) Ballpark Digest brings us up to speed on the negotiations between Mr. Moorad and Escondido politicians over the construction of a new ballpark. Mr. Moorad allegedly won’t finalize his purchase of the Triple A club until he gets the deal he wants from Escondido.
  • An Ottawa Councillor has been talking with the Toronto Blue Jays about relocating one of their minor league affiliates to Ottawa. Seems a bit of a stretch, the Jays don’t own any of their affiliates, the next round of PDC negotiations isn’t until after the 12 season, Triple A flopped in Ottawa previously….but….the Jays are none too thrilled with having their Triple A affiliate in far away Las Vegas, and their recent affiliation with the A level Vancouver Canadians indicates a desire to build their brand across the country, and if Rogers Communications ever launches the Canadian version of MLB Network (they already own the rights), an Ottawa team might fit with their programming requirements. How about the Jays buy a Triple A franchise with Mandalay Baseball and bring it to Ottawa? I promise I’ll support it, I supported Triple A in Ottawa for 16 years and I can’t overstate how much I miss it.

 


Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

 

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?