Friday, March 26, 2004
Cheers and Jeers in Cablevision/YES Deal
Steve Zipay of Newsday breaks down the winners and losers.
In addition to the Yankees, the winners included sports-loving Cablevision homes which had previously paid $4.95/month for the three local sports channels, including YES, which are now back on basic cable. The precedent also bodes well for other regional sports channels that want to stay on basic cable.
Cablevision is the biggest loser. It will be paying the Yankees another $27 million/year, and had to return Fox Sports Net and the MSG Network to basic cable to match YES. Other losers include the millions of Cablevision subscribers who don't watch baseball, who will be paying 95 cents more each month for programs they don't want.
Coincidentally, yesterday the Senate Committee on Commerce, Science and Transportation held a hearing on "Escalating Cable Rates: Causes and Solutions." Committee chairman John McCain said, "When it comes to purchasing cable channels beyond the basic tier today, consumers have all the 'choice' of a Soviet election ballot." McCain also commented on the YES arbitration:
" Just yesterday, consumer choice was dealt another blow. Although a reported 91% of Cablevision customers chose not to purchase the YES Network when given the choice last year, an arbitrator’s decision will compel all expanded basic customers to take the channel. And as one would expect, the rates of these subscribers will go up."
This issue's not going away. In addition to non-fans who don't want to pay for expensive sports programming, some parents groups object that they can't buy Disney or Nickelodeon for their children without also letting "racier" networks like MTV, fX or Comedy Central into the house.
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Steve Zipay of Newsday breaks down the winners and losers.
In addition to the Yankees, the winners included sports-loving Cablevision homes which had previously paid $4.95/month for the three local sports channels, including YES, which are now back on basic cable. The precedent also bodes well for other regional sports channels that want to stay on basic cable.
Cablevision is the biggest loser. It will be paying the Yankees another $27 million/year, and had to return Fox Sports Net and the MSG Network to basic cable to match YES. Other losers include the millions of Cablevision subscribers who don't watch baseball, who will be paying 95 cents more each month for programs they don't want.
Coincidentally, yesterday the Senate Committee on Commerce, Science and Transportation held a hearing on "Escalating Cable Rates: Causes and Solutions." Committee chairman John McCain said, "When it comes to purchasing cable channels beyond the basic tier today, consumers have all the 'choice' of a Soviet election ballot." McCain also commented on the YES arbitration:
" Just yesterday, consumer choice was dealt another blow. Although a reported 91% of Cablevision customers chose not to purchase the YES Network when given the choice last year, an arbitrator’s decision will compel all expanded basic customers to take the channel. And as one would expect, the rates of these subscribers will go up."
This issue's not going away. In addition to non-fans who don't want to pay for expensive sports programming, some parents groups object that they can't buy Disney or Nickelodeon for their children without also letting "racier" networks like MTV, fX or Comedy Central into the house.
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