Light Reading
The new Los Angeles Dodgers sports network, SportsNet LA, is asking for monthly fees between $4.50 and $5 per sub from pay-TV providers. Many are resisting.

Ticket Price Shock for New Dodgers Network

Mari Silbey
2/27/2014
50%
50%

Sports networks are expensive. However, SportsNet LA, the new regional sports network offering around-the-clock coverage of the Los Angeles Dodgers, is more so than most.

USA Today reports that SportsNet LA is asking between $4.50 and $5 per subscriber per month from pay-TV providers that want to carry its content. So far, only Time Warner Cable Inc. (NYSE: TWC) has added the station to its line-up, which is not surprising because the cable company is already subsidizing the network to the tune of $8.35 billion shelled out to the Dodgers over the next 25 years.

TWC has an estimated 2 million customers in Los Angeles, representing about 45% of the TV market. DirecTV Group Inc. (NYSE: DTV), Verizon Communications Inc. (NYSE: VZ)'s FiOS, and AT&T Inc. (NYSE: T)'s U-Verse are among the providers that have balked at paying the price that SportsNet LA is pitching.

Cable companies repeatedly cite sports programming juggernaut ESPN as providing the most valuable content in their bundles for customer retention and acquisition. The results of an operator survey released this week by Beta Networks Corp. listed ESPN as the No. 1 network for perceived value among pay-TV providers for the 14th year in a row. Yet even ESPN charges no more than an estimated $5.40 per subscriber per month, and the network's sports coverage is far more extensive than a single team.

ESPN is also the most expensive content provider to date in cable bundles, although content rights fees are rising in other areas as well. CBS Corp. (NYSE: CBS) CEO Les Moonves has said he expects his company to generate $1 billion from retransmission and affiliate fees by 2017. (See CBS Financials Fuel Aereo Angst)

The price of programming is one big reason why the cable industry is consolidating. Service providers are hoping to wield more power in content negotiations by increasing their distribution footprints. Regional sports networks present a unique challenge, however, because their greatest viewing interest is contained in a very small geographic area.

The question is: How long will pay-TV providers be able to hold out against networks like SportNet LA in the face of fan demand? The answer may be a lot clearer come opening day of the baseball season at the end of March.

— Mari Silbey, special to Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
3/1/2014 | 3:31:03 PM
Re: Overpriced?
This issue will come to a head in April. The Dodgers are a popular brand in LA, especially for content in the summer. The $8.35 billion TWC has paid out to the Dodgers network is proof of that. 

Live sports is one of the last mediums of content that broadcast and cable can count on. Netflix is not streaming baseball games yet. 
albreznick
50%
50%
albreznick,
User Rank: Blogger
2/28/2014 | 4:44:23 PM
Re: Overpriced?
You mean the Dodgers can command higher prices than, say, the KC Royals? Well, yeah, i guess so. But can they command a higher price than the Yankees in New York or the red Sox in Boston? I'm not so sure abut that. As for that loyal Dodgers fan base, don't they all still leave Chevez Ravine in the 7th inning to avoid the traffic going home?e  
DOShea
50%
50%
DOShea,
User Rank: Blogger
2/27/2014 | 4:47:01 PM
Re: Overpriced?
Not that this legitimizes the asking price in any way, but the Dodgers will field one of the best teams in baseball this year, and have one of the largest, most rabid regional fan bases every year. If they're going to ask for a big fee, now is the time to do it.

 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/27/2014 | 3:46:45 PM
Overpriced?
Something having to do with professional sports is overpriced? I'm shocked, shocked I say!
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Like Us on Facebook
Twitter Feed