MLB, DIRECTV expand multi-year agreement

[Enrique]

Major League Baseball and DIRECTV, the nation's leading satellite provider, today announced a seven-year agreement that continues carriage rights to the MLB EXTRA INNINGS subscription package of out-of-market games and includes the launch of the MLB Channel as part of DIRECTV's basic package. Included within the agreement, DIRECTV will be a minority partner in the MLB Channel, and will work with MLB to develop the network, which will launch in 2009.




Additionally, in keeping with MLB's desire to provide as much MLB programming to as many baseball fans as possible, MLB and DIRECTV have agreed to include a provision that allows MLB EXTRA INNINGS to be offered to other incumbents - In Demand and DISH Network - at consistent rates and carriage requirements with a deal to be concluded before the baseball season begins. The provision also requires the incumbents to agree to carriage rights to the MLB Channel proportionally equivalent to DIRECTV's commitment. Should the incumbents decide not to match DIRECTV's commitment, the MLB EXTRA INNINGS package will be exclusive to DIRECTV. All out of market games continue to be available on MLB.com.


http://mlb.mlb.com/news/press_releases/press_release.jsp?ymd=20070308&content_id=1833910&vkey=pr_mlb&fext=.jsp&c_id=mlb

[bidger]

Additionally, in keeping with MLB's desire to provide as much MLB programming to as many baseball fans as possible, MLB and DIRECTV have agreed to include a provision that allows MLB EXTRA INNINGS to be offered to other incumbents - In Demand and DISH Network - at consistent rates and carriage requirements with a deal to be concluded before the baseball season begins. The provision also requires the incumbents to agree to carriage rights to the MLB Channel proportionally equivalent to DIRECTV's commitment. Should the incumbents decide not to match DIRECTV's commitment, the MLB EXTRA INNINGS package will be exclusive to DIRECTV.

From the 8th paragraph on DirecTV's website about this announcement:

The MLB Channel will launch in 2009 on DIRECTV, ensuring that the Channel is immediately available as part of DIRECTV's basic service. DIRECTV's commitment to carry the Channel as a basic service to more than 15 million homes was a major factor in the long-term agreement between the provider and MLB.

DirecTV's subscriber base is ~15 million, so DirecTV is saying they're making The Baseball Network available to all their subs, which tells the other incumbents, Dish and Cable, you can't stick the Baseball Network in a Digital or Sports tier package or you won't be matching the same arrangement DirecTV made.

Given the issues Cable had with the NFL Network not wanting their channel stuck in a digital tier, I see this as a sticking point for the other providers.