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How the Dodgers' New TV Contract Exemplifies Major League Baseball's Problems

Cable subscribers are subsidizing a dying industry

Yes, the die-hard Dodger fan will readily fire up his debit card to cover the impending $200 tab. But the team's broadcasts average just 100,000 viewers. That means the remaining 5.6 million L.A. households with cable must be convinced to pay the same to catch such searing drama as Vanderpump Rules and Confessions: Animal Hoarding.

One needn't be an economist to know this won't turn out well.

Webster University economist Patrick Rishe: "I think baseball is seen as archaic. It moves at a slower pace. Their athleticism doesn't jump off the screen."
PHOTO BY TOM CARLSON
Webster University economist Patrick Rishe: "I think baseball is seen as archaic. It moves at a slower pace. Their athleticism doesn't jump off the screen."

Baseball is introduced to reality

Baseball may be sick, but the prognosis isn't terminal. Average per-game attendance was 31,000 last year, not far below pre-recession days. Better still, polling shows that Latinos, the country's fastest-growing demographic, are also the game's biggest fans.

Posnanski notes that teams have agreed to share Internet revenues, meaning there may come a day when the Pirates and the Royals won't have reserved seats at the kids' table come playoff time.

Yet it's more likely that consumers and the cable industry will force baseball to confront its decaying foundation. And if they're successful, the cost to true fans will rocket.

Companies like Time Warner Cable have begun to use their own market power to fight back, offering cheaper, mostly sports-free deals for those tired of paying for games they don't watch. Time Warner's TV Essentials package comes in at less than $50, says spokeswoman Huff, and is "designed for people who are just kind of feeling the economy." Most telling: It doesn't include ESPN or other sports channels.

Cablevision is the biggest threat looming off baseball's stern. Earlier this month, the New York provider filed a federal antitrust suit against Viacom, claiming that in order to carry Comedy Central and VH1, it was forced to buy channels like Logo and Palladia as well. According to the suit, Cablevision could always reject these demands. But Viacom wanted a $1 billion penalty in exchange for any exercise of free will.

If the court rules against Viacom, cable and satellite may finally be able to offer packages to suit any price or taste. Baseball's welfare payments from non-fans will corrode. And with an audience in decline, remaining subscribers will be forced to spend that much more to compensate. Suddenly, that $200 bill could look like a going-out-of-business sale.

A dying game will be introduced to Economics 101. It won't be a pleasant encounter.

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13 comments
billdale
billdale

I have never subscribed to cable or satellite, and never will so long as they play these games where everyone is forced to order a bloated menu and agree to pay such outrageous fees. If I can pick and choose which channels I watch, and can simply pay for those channeIs I actually watch, I may finally subscribe to cable for the first time-- until then, I'll get by on what is broadcast for free, and what I care to see at walk-in theaters, what is available online, and what's available while I'm at the gym. I refuse to give in to bullies.

I would never watch baseball or football in their present form: hours of sitting and waiting for players to execute a few spare minutes of action... that's insane. If I want to watch sports, I'll watch Kobe and company as they work out vigorously throughout an entire game... or, even better, burn some calories myself rather than be a mere spectator, getting fat on a couch with a remote in hand.

SaMo
SaMo

"Viewership for the NBA Finals — though reduced from the days of Bird, Magic and Jordan — is once again climbing skyward."

This is simply not true.  Nielsen ratings for the NBA finals have declined from 10.6 to 10.2 to 10.1 over the past three years. 

NativeAngeleno
NativeAngeleno

You assume too much, mainly that the status will remain in quo across the board.

As people revolt against cable and satellite bills, the cost will have to be downgraded. This will become the case especially after the dollar is devalued down to it actual worth, maybe a nickel.

Prices for everything will drop accordingly, after a while. People will still crave their diversions, tho, so baseball will be there and just have to adjust, along with everyone and everything else.

It could well turn out that ballplayers and owners alike will have to downgrade their years of pillaging the glory hole to a more common status of "survival, plus".  An equilibrium will be found that pays the average multi-millionaire player the then-equivalent of a few hundred thousand dollars instead, the average billionaire owner a few hundred million. Baseball's take will have shrunken to meet fans' discretionary spending. That's all. 

The economics will not kill the game. I would offer the assertion that no other game is POPULAR enough to be played, to adequate attendance, 6 days a week, ESPECIALLY in baseball's apecial season, summer, when no other game can even be played, beside soccer. And soccer especially in the US will never replace baseball. It doesn't even replace baseball in countries where there is nothing else BUT soccer!

As the years go by and the old like me (63) die off, we will be replaced by other then-oldsters, now 30 and 10.  The slower game is for those who age their way into appreciation of it. You may not have learned to appreciate this fact yet,m if ever.

Whether national contracts will disappear altogether---they won't---so long as enough local interest exists, no matter the state of the economy, the game will be played.  I have watched my oldest child, now 26, go from disdaining the game to really loving it, in part because her boyfriend does. They have their own favorite team they follow. As they age, they will appreciate their allegiance more.  Ask any fan who is now old when they started really watching, and attending spring training, and the like. It's as they age. That's how it works, that's how it stays extant. Screw the demographics, they do not tell the end of the story. And the economics always adjust to the availability of spending money. I haveno worry baseball will be around and loved way off into the future. I know too many people way younger than me who have discovered they love it. In LA in particualr, baseball is moving away from the Northeast into the new center of the baseball universe hereabouts, That switch is bolstering new allegiances atop the old which will remain, tho a little diminished. Baseball is evolving, and because of it will survive. 

DemBoyz213
DemBoyz213

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jkkdistrict
jkkdistrict like.author.displayName 1 Like

How is Willie Wilson batting in the bottom of the ninth in Philadelphia?

pizzmoe
pizzmoe

@jkkdistrict Good observation!  He most certainly did not bat in the bottom of the 9th, but it made the story more dramatic, right? Makes you wonder what other facts were fudged

louispfreely
louispfreely

I subscribe to MLB.tv and use a VPN to get around the blackout to watch Dodger games.  I know a bunch of other guys who do the same thing.  We ain't showing up on your stats. 

Rhoberly Gillon
Rhoberly Gillon

I do not like this at all! Unfair, I don't watch sports, and I don't care at all about them

NativeAngeleno
NativeAngeleno

@Rhoberly Gillon Why are you reading this?!

Overwhelm your congressman into passing a law that forces cable and satellite to de-bundle your costs. Until you do that, stop whining about it.

Ed Kim
Ed Kim

Greed. But maybe it will be like a house. Buy something you can barely afford and hope you financially "grown into it." I haven't been able to take a close look at the numbers so I don't know if "growing into it" is possible.

apalemick
apalemick

Most everyone I know watches online now.

 
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