MLB Extra Innings Makes Deal with in DEMAND

A seven year agreement was reached yesterday between Major League Baseball and iN DEMAND, representing cable companies throughout the country, to offer the MLB Extra Innings package to cable subscribers. This means that cable subscribers will not have to switch to DirecTV to watch their favorite teams, per the original agreement.

It is ineresting that Major League Baseball to extend their negotiations past the original deadline of March 31. Several factors could have come into play. Congress had continued to put pressure on Major League Baseball to allow baseball fans who were not DirecTV subscribers to have access to the package that offers out-of-market games to its viewers. A three day extension was established which was enough for iN DEMAND to make the decision, perhaps as a result of pressure from their subscribers, to meet the original terms that had initially been offered by DirecTV.

Pressure was also brought on Major League Baseball by disgruntled fans. After the season started it was obvious that many fans had chosen not to be bullied into switching and voiced their opinions to both their providers and MLB. The extension gave iN DEMAND the opportunity to reconsider and please their subscribers by agreeing to the terms, thereby taking away DirecTV's exclusive rights.

In a release, Bob DuPuy, President and Chief Operating Officer of Major League Baseball stated, "Our chief goal throughout the process was to ensure that fans would have access to as many baseball games and as much baseball coverage as possible." He went on to say, "With this agreement, the MLB Channel will launch with an unprecedented platform. We are pleased with the launch of the MLB Channel to so many homes coupled with our agreement to extend the distribution of MLB Extra Innings with iN DEMAND."

The seven year deal between iN DEMAND includes the original clause requiring the cable stations, including ComCast, Cox, Time Warner and Cablevision to also carry The Baseball Channel when it is introduced in 2009. DirecTV maintains 20 percent ownership in The Baseball Channel, although it has lost its exclusivity in the market. As a result of losing exclusive rights, DirecTV's original offer of $700 million to MLB Extra Innings has been restructured now that the new arrangement has been reached with iN DEMAND.

Chase Carey, president and chief executive of DirecTV, said last month that the deal would work for his company "on either front." When asked which he would have preferred, Carey replied, "Exclusivity would probably have been the preferred path. But we've reached an accommodation that would work either way for us."

This leaves EchoStar Satellite LLC as the only provider that has not yet accepted the agreement with Major League Baseball, and therefore is still unable to offer the MLB Extra Innings package to its subscribers. According to Dish Network's website (owned by EchoStar LLC) negotiations have not ended so there may still be hope, and they are promising to keep the website updated with any changes or agreements. Major League Baseball confirmed that negotiations are continuing. Subscribers to the EchoStar LLC satellite network are encouraged to call their providers to express their desire an agreement to be reached with Major League Baseball.

In the meantime, ESPN has been carrying games each night this week, including two between the 2006 National League Pennant rivals, the St. Louis Cardinals and the New York Mets. With last night concluding that series in St. Louis, the Cardinals have learned the meaning of the phrase "paybacks are Hell!" The Mets swept the series exhibiting superior pitching in all three games which efficiently kept the Cardinals' bats quiet. The Cardinals were held to two runs in the three game series. The Mets have a strong lineup and excellent pitching, but baseball fans need to be reminded that the season consists of 162 games and the competition has just begun.