Does the DISH/Extra Innings Deal Really Mean In-Market Streaming is Nigh?

After an eight season absence, MLB has broken the bonds of its quasi-exclusive arrangement with DirecTV and Big Cable’s iN Demand consortium and have signed on DISH Network to carry the Extra Innings package starting this season.  The most interesting aspect, of course, was the prospect that live MLB games would finally be streamed in-market, an issue which has picked up steam this offseason in particular.

The DISH deal appears to open the door to that possibility by including this in the press release about the deal:

“The agreement provides a path for consumers to have authenticated access to stream live in-market games on digital properties from MLB, local programmers  and pay-TV providers. In-market live streaming would require additional agreements between the parties including DISH, MLBAM and programmers with local TV rights of MLB games.”

It has become clear since Rob Manfred replaced Bud Selig in the Commissioner’s chair that Major League Baseball really, truly wants to allow all of their product to be made available on all MLB.TV digital platforms, including the local game streaming within the local market.  This is something that has been more or less banned ever since the beginning of Internet-based broadcasts of live games.

But just because the press release says this “path” has been “provided for” doesn’t mean it’s going to happen very soon, or even soon-ish.  As Maury Brown metaphorizes in his sharp article about the deal, the broadcasting relationship in place among the parties is a three-legged stool: MLB is one leg; the telecast networks like Fox and NBC/Comcast and ROOT are the second leg; and distributors such as satellite and cable providers are the third.  But it is that third leg that is the load-bearing leg that might undermine the whole arrangement if they were to pull out, and they have a good reason to pull out, or at least threaten to, if the other two legs insist on in-market streaming.

In this era of programming in which the majority is time-delayed by watchers so they can view it at their convenience―and, incidentally, be able to zip through expensive commercials―sports programing is considered the gold bar of programming, since it almost always demands live viewing to fully appreciate it.  With that live viewing comes much greater viewing of commercials.  Because of this, commercials in sports programming are more expensive per viewer than in nearly all other types of programming.

But if local live sports becomes available to viewers on digital platforms (i.e., platforms other than cable and satellite), then that removes a very big reason for people to continue to subscribe to cable services that are, let’s face it, more costly by a factor of multiples than what people are willing to pay.  And even though such in-market digital games would be available only by authenticating “your” existing subscription, anyone who has a friend who subscribes to Netflix or Hulu knows that login credentials can be shared with as many people as the subscriber knows.  In other words, cable companies in particular know that in-market availability of games will cost them subscribers, revenue, and ultimately profits.  And they certainly don’t want that.

The restriction against viewing local games reaches epidemically ridiculous proportions in that it even includes a prohibition against watching out of market delayed broadcasts on the satellite and cable provider itself, or even “classic games” from decades before.  I live in Chicago, and I can’t view old Yankee classic games on YES, or Orioles classic games on MASN, because of the deal between MLB and distributors.  Why this is, I don’t know exactly―maybe it’s one of those things that distributors don’t really need, but like to have anyway just so they can negotiate away something not so important to retain the thing that is most important in cases like this―that most important thing being, of curse, live streaming of games to local markets.

But make no mistake: as much as Baseball and The  Networks want to make the product available to everyone everywhere, distributors have just as much desire to keep local viewers in the dark during local games.  Because they believe they have a very fat ox waiting to be gored when that happens, and unless some business arrangement or technical system is undertaken to address it, they have no interest in falling on that ox’s horns.

Leave a Reply

Your email address will not be published. Required fields are marked *