lithium prices 2012 where to buy live rock purchase diclofenac sr best site to buy betapace best site get xalatan benicar sales aurochem laboratories india pvt ltd mumbai how to get glucotrol xl on line buy prilosec 40 buyers of sarafem canada tamoxifen in bodybuilding duetact rxlist comprar viagra generico online espan~a zentel tablets 400mg ranitidine no prescription american alligator facts sheet olanzapine now co uk trimox now cheap lexapro buy online buy lady era with e check cheapest paroxetine drugs pharmacy altace order on web where can i get some doxazosin order generic finasteride kamagra 100 side effects can buy ventolin online betnovate cream buy ordering lipitor canada altace medicine online buy acticin paypal buy premarin cream famciclovir buy uk what doses does atarax come in interactions metronidazole side effects nhs innovative research tadalafil i pill cholestoplex website canadian popular pills online abilify kaufen ginseng suppositories buy cheap ciplox free delivery nombre del generico de viagra what is haldol used to treat saw palmetto pills hair buy tadapox singapore seroquel tablets 25mg post cycle therapy brand advair diskus cytoxan online low cost cialis professional meridia uk online sale buy lotensin pills avapro generic date express scripts specialty pharmacy form canadian pharmacy online northwest how to purchase florinef online side effects of methotrexate for psoriasis robaxin overnight fedex how to by nitroglycerin online lamisil online terbinafine canada pharmacy acheter ginseng rouge paris comprar famvir original how to buy nitrofurantoin in london cheap oxytrol free delivery pyar ka dard hai written update desi tashan furosemide india where do i buy finax prednisone medication uses alesse doctors online buy alli online singapore spc number 1 sex pill for men cialis al miglior prezzo lynoral order cost of yasminelle alphagan with no perscription compare prices suprax online generic betapace side effects of vytorin 10-40 mg over the counter fertility pills canada prescription free viagra in australia what is ic promethazine 25 mg cozaar shop net buy requip 20 what are the side effects of taking too much ventolin dipyridamole lawsuit settlements atarax to buy in england generic actos 30 mg dosage order ethionamide cheap crestor fast usa adalat oros dose renagel coupon code pharmacy mexico differin nizoral fast india where is premarin manufacturer yasmin generic zarah allegra medication online where to nitrofurantoin trazodone drug in usa pharmacy buy tinidazole canada beat way to order viagra sublingual salbutamol vs terbutaline in children online pharmacy no prescription needed cozaar lotrisone india prescription discount Purchase propecia 1mg buy cleocin hcl low price clonidine uk cialis american ates,i very cheap fluoxetine what are side effects of norvasc indian generics online tadalis sx buy cheap generic avodart without citalopram tablets buy switching from prozac to zoloft zithromax mail order zyprexa zydis uk has synthroid been discontinued can you only get kamagra gold on prescription amitriptyline where to buy finpecia sold over counter naprosyn dosage for dogs sominex online usa no prescription cheap retino-a cream 0,025 pills buy valtrex tablets uk viagra uk online pharmacy wellbutrin looking for side effects of rosuvastatin calcium tablets seroquel from uk where is lasix made buy viagra 25mg uk is viagra generic in the us norvasc online in us brand cialis jelly buy acivir pills reviews and dosage canada luvox tablets online .05 tretinoin gel megalis 20 fincar in croatia lotrisone cream for yeast infection duetact roche precio argentina suprax drug oversea buy rosuvastatin australia generic finasteride buy uk purchase naprosyn cheap etodolac pct buy best place to buy isoptin in canada lozol generic 2013 drugs buy diclofenac with no rx brand levitra online coupon code decadron iv administration rate ordering cafergot here in canada order live crawfish bait without a script cod cheap alphagan buying zyrtec in manchester prescription drug pyridium how to use red ginseng powder accutane 10 mg purchase avalide in usa augmentin 375 mg tabletki buy hydrochlorothiazide from mexico online buy prinivil xr without prescription what is the generic drug for lamictal www.depoproveraonline.com can you buy things on ebay with paypal phone in order for kamagra oral jelly ibuprofen alcohol stomach pain cheap midamor pills what is the best alternative to nexium suhagra online store promethazine over counter substitute ditropan canada online no prescription chloroquine on line no script ou acheter du baclofene sans ordonnance diclofenac potassium rxlist cymbalta online no prescription ponstel where to buy pletal and plavix together online pharmacy uk zoloft what does promethazine do to your body cipro 500mg canada nexium with no perscription methotrexate tablets for psoriasis purim medicine online luvox cr for anxiety lowest price elimite can you buy zovirax over counter australia brafix shoppers drug mart buy isoptin mg 1000 year old ginseng sumycin for dogs buy alesse pills missed wellbutrin available over counter best fertility drugs for pcos what medication for anxiety attacks uk prescription buy cheap accutane tricor where can i buy it order clomid online no prescription with a mastercard express care pharmacy in arizona nootropil doctors online alli slimming tablets ireland buy remeron greece how do you get viagra online without a prescription canadian health act 5 principles very cheap advair diskus what is himcolin pills used for azithromycin 250 mg z pack comprar lozol pela internet how to take trental mg blopress pas cher italie cheapest drug ortho tri-cyclen what does kd stand for in adalat can you buy vasotec over the counter in germany where is alli sold in canada do you need rx clonidine is cephalexin available over the counter what is ranitidine bismuth citrate canadian alliance for development initiatives and projects (cadip) isoptin dosage and administration amoxil antibiotics while pregnant roxithromycin 10 mg cost depakote schedule ii drug rumalaya order by phone bentyl medicine children colospa by mail order tenormin without prescription miami zithromax dose for strep throat how to by levitra online what are water pills for high blood pressure solu medrol dose pack ophthacare price codeine and promethazine dosage where can i buy the morning after pill buying hytrin using paypal mentat ds syrup order by phone belize pharmacy non prescription pulmicort pharmacy how to get shallaki in australia diovan dosage nexium uk boots buy avalide purchase propranolol on line in india lisinopril not generic multinational pharmaceutical companies india voveran online price online pharmacy compare accutane prescription macrodantin nitrofurantoin 50mg one direction get chlamydia flagyl er india actoplus met from india herpes medication no prescription buy malegra dxt boots pharmacy generic viagra uk online to buy zerit in uk brahmin handbags discount suppliers contraceptive pill yasmin weight gain generic actos canada pioglitazone sex and the city the man the myth the viagra song best generic revia sites cane you order rhinocort canadian pharmacy lisinopril without a prescription nizagara mexico cialis viagra delivery within usa 2 3 day toradol pain pills best concetraption advair copd treatment can you get bactrim over counter lipitor express canada to buy quibron-t stieva-a 0.025 what are ciplox tablets used for cost of pyridium without insurance order pariet cheap order buy prescription eurax naprosyn 100mg buy escuchar canciones del padre chelo elavil order by phone effexor xr reviews for men bactrim complaints generic toprol xl overnite shipping are there any over the counter alternatives to viagra before brand advair diskus shoppers drug mart albenza direct pharmacy real rogaine results what is propranolol 10 mg viagra sublingual uk next day delivery tetracycline suppliers overseas proventil hfa shelf life ordering glucotrol xl diet pharmacy buy topamax 100 oral acne medication minocycline bactroban tablets online low carbon energy university alliance tsinghua brand dilantin buy zovirax 400 mg herpes aciphex tablets 40mg st davids artane for sale avalide ships from india buy cytotec singapore parlodel 2.5 mg 30 tablet micronase brand order mexitil online purchase mexico pharmacy diclofenac gel cheap celebrex 40 mg indian online buy trandate bactrim ds 800-160 dosage for uti sublingual canada generic buy viagra purchase luvox 100mg buy viagra online thailand augmentin tablets what are the used imiquimod cream 5 cost benadryl australia diphenhydramine pills that get you high yahoo answers canadian health care mall cialis pharmacy checker blog advair diskus over the couter how often can i take cialis 20mg tegretol without prescription miami elimite pills increasing sperm count and quality best place to buy olanzapine how to use proventil hfa original celexa online venlor generic name dramamine lowest price zithromax dosage for uti tegretol no rx lamictal without a prescription from us femara online in us remedio para emagrecer alli onde comprar accutane over the counter discount minoxidil rogaine for women to buy antabuse over the counter provera pill identifier xanax generic reviews on allegra cheapest sinemet allopurinol dose for gout order acivir pills 10 pharmacy acheter digoxin pas cher compazine no prescription canada rhinocort for men in usa how to get estrace in australia what does reglan cause betneval 0.1 pommade pharmacies buy vpxl alesse for discount prescription actos price japan buying doxycycline using paypal beat way to order premarin purchase menosan is voltaren a prescription drug discount generic accutane online neurontin purchase what is apo-citalopram 20 mg kamagra jelly wikipedia side effects of indocin low cost overnight tinidazole best place to order differin in us buy retin a online no prescription speman order on web bayer crystal aspirin in canada vasotec cost comparison trandate mail order india buy cordarone 40 best active prices canadian pharmacy super cialis online how to get finast drug generic gyne-lotrimin for sale on line best pharmacy to order lotrisone fluoxetine generic effectiveness securetabsonline cialis 20mg can you buy fucidin h cream over the counter what is mentat made of premarin over counter drug cheap finasteride uk free canadian family tree search buy midamor online no prescription united states where can i get olanzapine augmentin liquid rxlist buy perfume online international delivery minocycline skin pigmentation prandin tablet sale compare prices elocon online medicine store usa zestril paypal allegra over the counter 1996 where to buy nexium with amex diclofenac gel results forum pharmacy express corp ontario can you buy ventolin online what does maxalt do lancet azithromycin bronchiectasis non persciption aldactone best online pharmacy generic purinethol buy actos online no prescription drugs cheap keflex 40 mg what is benzac made of danazol lawsuit vermox plus walgreens order paroxetine lowest price where to buy anti depression medication can i order prevacid no prescription in the usa where to apcalis sx different kinds asthma inhalers order aripiprazole (abilify) online zoloft canadian online overnight pharmacy s and m bikes desyrel generic 2013 drugs no rx cephalexin online how to buy bystolic buy atacand online no prescription us dapoxetine cheap uk ventolin costco kamagra chewable mg buy buy genuine elocon uk cialis 20 mg side effects rheumatoid arthritis blood test buy ventolin inhaler no prescription omnicef 100 mg ??? lisinopril perth australia erectile dysfunction samples what drug category is zenegra low cost actos generic suprax available pletal medication order where to get lithium orotate buy minocin boots pharmacy pramipexole dihydrochloride uses can i buy viagra in tijuana nolvadex not generic genuine cialis tablets buy colchicine australia buy meclizine hong kong prescription buy aygestin online cheap isoptin pharmacy celexa heart problems lawsuit can you buy propecia australia prescription medicine for dog diarrhea generic protonix safe buy lopid boots pharmacy why is there a shortage of apcalis sx xenical 120 mg reviews lisinopril/hydrochlorothiazide no prescription best non prescription flea medicine for dogs prednisolone for dogs ear infection generic allopurinol 100mg cialis testimonials forum comprar benemid original en madrid ventolin hfa online pharmacy lamictal dose for seizures propranolol refill pack but otc valtrex ephedraxin shop lipitor australia side effects prophylactic dose of doxycycline for malaria diclofenac generic brand actos online purchase how to use ventolin diskus cheap clomid tablets ventolin delivery uk healthcare alliance scam over the counter amaryl side effects of procardia dipyridamole tablets for sale buy casodex boots pharmacy buy triamterene online no prescription us doxycycline capsules acne how much does levaquin 500 mg cost celadrin side effects long term use rumalaya gel roche precio argentina how to purchase nymphomax online amlodipine maleate or besylate is it illegal to order generic lithium furosemide cheap uk pharmacy protonix medicine used for vermox discount voucher ceftin discount can i buy viagra over the counter uk cheap genuine prednisone online brand viagra ordering no prescription nizoral price india viagra online kaufen paypal where can you buy pain pills online 1 cheap abilify online pharmacy tegretol discount voucher order non generic yagara what does prazosin do provera didn;t work...now what order abortion pill online uk buy chloramphenicol online no prescription us what does ginseng do to your body which uk site to buy lithium minocycline 100mg for acne reviews tamoxifen australian customs plavix loading dose use is silagra a prescription drug best place to buy online cheap kamagra how long should i use retin a for acne ciprofloxacino para que sirve 500 mg generic name for altace order naprosyn pill buy provera with visa 5mg cialis daily use femara dosage recommended lopid online bestellen side effects of inderal la 80 keflex uk next day delivery can you buy propranolol over the counter avapro dose sizes med cab ophthacare fast speman delivery sildenafil viagra and ophthalmology nootropil no prrescription prescription bystolic take where to get acai berry juice in stores order adalat 40 mg buy brand levitra lowest price morning after pill free manchester buy zanaflex tablets india levitra tablets uses order avalide 300 25mg what does cleocin look like buy lanoxin tablets online a good web page to buy zithromax with no script zenegra sale cheap online pharmacy buy cialis tablets australia buy liverpool fc tickets 2012
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 1155 guests online

Atom RSS

LWIIB: What Does a Drop in Cable TV Subscribers Mean for MLB? PDF Print E-mail
User Rating: / 7
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?