Wednesday, December 12, 2012

Sports Programming

Very interesting development - DirecTV to start charging customers with multiple regional sports networks (RSN's) a $3 charge.

Nobody argues that sports programming pricing is going through the roof but this news makes me think the following:

1. The logical thing would to be to move the sports programming to an expanded tier. I have Charter cable at home and the NFL Network is in the expanded tier but the MLB Network is in basic. Moving the sports channels to expanded would allow only the people who want sports to be paying for them. People like the RSN's, ESPN and others would fight this tooth and nail. They enjoy being is the most popular tiers because it makes them the most money.
2. The move by DirecTV is a little hypocritical when you think of how much they are paying for the NFL rights and the fact that many people subscribed to DirecTV just for NFL games.
3. This move could be interpreted as another step towards a la carte programming. I think if you gave sports content channel owners the choice between a la carte and having their channels on an inclusive expanded tier (sports, women's programming, etc.) - then the content owners would choose the expanded tier. We could therefor start to see some movement by the content owners regarding "must carry" requirements and tier placement as new agreements are reached with the major cable operators. The price expansion simply just can't go on like this.

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