- Early Wednesday morning, a month after the start of MLB's regular season, Bally Sports' regional network lost power to Comcast Cable customers after transportation negotiations with bankrupt channel operator Diamond Sports Group broke down.
- Comcast's Xfinity pay TV customers will automatically receive an $8 to $10 monthly credit, the cable company said.
- The horse-drawn buggy is the latest headache for both Diamond Sports, which is emerging from bankruptcy this year, and the struggling regional sports network industry.
Comcast customers no longer have access to Bally Sports regional network after one month MLB regular season.
Fans of 11 MLB teams, including the Detroit Tigers and Minneapolis Twins, were left without access to networks broadcasting local games early Wednesday morning. With the NBA and NHL postseasons in full swing, if the power outages last until then, fans of teams in those leagues likely won't feel the effects until next season.
Negotiations between Comcast and Diamond Sports Group, the operator of Bally Sports, which has been under bankruptcy protection since last year, collapsed over a dispute over terms. Comcast offers cable and internet services under the Xfinity brand.
The outage is another blow to regional sports network businesses, which are under pressure as consumers opt for streaming and cut pay-TV subscriptions.
MLB teams are no longer available to Comcast customers
detroit tigers
miami marlins
cincinnati reds
st louis cardinals
tampa bay rays
texas rangers
atlanta braves
los angeles angels
kansas city royals
minnesota twins
milwaukee brewers
*Note: Comcast is not a market provider for all of these teams.
A Diamond spokesperson said in a statement Tuesday that Comcast “refused to engage in substantive discussions” even though Diamond offered terms similar to those agreed to with other distribution companies. .
“We are a fan-first company and will continue to seek an agreement with Comcast to return to broadcasts.At this critical time for Diamond, we recognize the important and mutual role that Diamond and RSN play in the media ecosystem. I hope Comcast recognizes the useful role of “diamond spokesperson.'' said in a statement.
Diamond's contract with Comcast expired in the fall, but the companies agreed to a six-month extension at the time. A Comcast spokesperson said in a statement that Diamond had the right to extend his contract for another year, but “he chose not to do so.”
“While we would like to continue offering their network, they have turned down multiple offers and we now lose the rights to this show,” the statement said. Comcast announced it would provide affected customers with credits ranging from $8 to $10 per month.
Late Tuesday, Diamond said Comcast “rejected an extension offer that would have kept the channel on the air.” The offer is open-ended and would keep the network on the air while negotiations continue toward a multi-year deal, according to people familiar with the matter.
The conversation largely broke down over how quickly Comcast could move the Bally Sports network to a tiered model. This means that the customer will have to choose a package that includes the channel at a higher rate, rather than having the channel included in his broader cable package.
Pay TV distribution companies have been rapidly losing customers in recent years as customers choose cheaper streaming options. Comcast lost 487,000 subscribers in the first quarter, but had more than 13.6 million pay-TV customers as of March 31.
Some regional sports networks have begun offering streaming options to their customers at price points that don't upend the pay-TV model. Diamond has streaming rights to five of the MLB teams that lost service on Comcast.
Transportation transactions with distributors are considered key to securing Diamond's viable business plan and future. In addition to Comcast, Diamond has also been in talks in recent weeks. We partner with DirecTV and Cox Communications, Charter Communications, which offers pay TV services under the Spectrum brand.
Diamond has previously signed multi-year deals with Charter and Cox. On Wednesday, DirecTV also announced it had reached an agreement with Diamond to continue operating the network. The deal extends the current agreement and moves to a phased model over time, according to people familiar with the situation.
Diamond and Internet TV bundle FuboTV also signed a multi-year deal in December, but Bally Sports' network does not join other major Internet TV providers such as Google's YouTube TV and Disney's Hulu+ Live TV.
Diamond filed for bankruptcy in March of last year. Since then, it has rejected rights deals with some teams, including MLB's San Diego Padres and NBA's Phoenix Suns, who have signed deals to broadcast games through local broadcasters.
The largest regional sports network aims to emerge from bankruptcy in the coming months under the ownership of its creditors, with a public hearing to approve a restructuring plan scheduled for June.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
