New Contract and Controversy
On March 6, 2007, DirecTV signed a new seven-year carriage contract with the MLB. At first, it was to be an exclusive deal worth $700 million. However, as a result of viewer complaints and antitrust concerns - voiced by, among others, Massachusetts Senator John Kerry - MLB agreed to offer the package for renewal by cable systems and Dish Network. By March 9, negotiations had begun to try to settle the dispute, with a deadline of April 1, the first day of the MLB regular season. MLB demanded that the cable systems bundle the renewal of the Extra Innings package with the MLB Network, a 24-hour network in the vein of NFL Network, NBA TV, and NHL Network that MLB launched on January 1, 2009. Furthermore, these systems were asked to place the channel on an expanded digital tier. At least one major system, Time Warner Cable, balked at the terms.
The offer from the cable consortium to MLB would have matched the financing portion, but cable was only willing to put the MLB Network on a premium tier. Cable systems did guarantee to reach at least as many viewers of MLB Network as DirecTV will reach. MLB was not satisfied with the offer, and publicly claimed that the cable companies failed to meet more of the criteria for the deal than they had actually met. However, while MLB wanted the cable systems to match the same offer as DirecTV, MLB would be providing more generous benefits to DirecTV for the very same offer: DirecTV would be receiving a stake in MLB Network, thereby barring cable systems from receiving the telecasts. Hence, MLB was accused of claiming that cable would not meet the same terms as DirecTV, while not offering the same deal to the cable consortium.
As of the start of the season on April 2, only DirecTV had agreed to those terms and was able to retain Extra Innings. It would not be available on any cable system until after the deadline was extended and agreements were reached.
On April 4, MLB and iN DEMAND finally reached an agreement similar to the one that MLB reached with DirecTV. Cable companies that carry iN DEMAND resumed carrying MLB Extra Innings and also agreed to add the MLB Network upon its launch. iN DEMAND only had the authority to negotiate directly for and agree to add the MLB Network on their owners' cable systems which are made up by Comcast, Time Warner Cable, Cox Communications and Advance/Newhouse (Bright House Networks); in turn, iN DEMAND got an equity stake in the MLB Network about the same as the one DirecTV received. Cablevision which had been asking for their own equity stake as terms for them to agree to add the MLB Network came to terms with iN DEMAND and Major League Baseball on May 4, 2007 which was iN DEMAND and MLB's deadline for cable companies and Dish Network to reach a deal. Dish never came to an agreement and as of January 2013 is still not carrying the package. Cablevision agreed to carry the MLB Network without getting the equity stake in it. Charter Communications also reached an agreement with MLB.
iN DEMAND places MLB Extra Innings on the same channels as its NHL Center Ice service. Some providers, like Comcast and Suddenlink Communications may not offer all 14 MLB game channels. Because of hockey games shown on the same channels (particularly in April), some nights on Comcast and Suddenlink see no more than 2 or 3 games being shown. Some Comcast cable systems do carry all 14 game channels, while some systems have limited number of channels. DirecTV customers do not have this problem, as their 15 channels (mostly RSN remaps) are dedicated solely to baseball.
Read more about this topic: MLB Extra Innings
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