SAN FRANCISCO (AP) — Comcast has shut down 15 regional sports networks offered by Bally Sports, escalating a contract dispute with the distributor.
The cancellation affects games played by 12 Major League Baseball teams based in nine states. Diamond Sports Group, which distributes the network under the Bally name, called the outage “unfortunate” and accused Comcast of refusing to have “substantive discussions.”
Meanwhile, Comcast said it turned down several offers, including allowing Diamond to unilaterally renew its existing contract with Comcast for one year. As a result, Comcast said it did not hold the rights to the sports broadcast as of Wednesday and had no choice but to cancel the broadcast. The company said it would refund customers for costs associated with the blackout broadcast, and said most customers would automatically receive an $8 to $10 monthly credit.
Both companies declined to comment beyond their prepared statements.
Complicating matters is the fact that Diamond is working its way out of bankruptcy, having declared bankruptcy just over a year ago as a result of large debts incurred from previous financial transactions.
The controversy reflects the widespread scrutiny looming over sports broadcasts in the streaming era, with pay-TV subscriber numbers plummeting across both cable and satellite channels.according to Research by Leichtman Research Group The share of U.S. households paying for such live TV services has fallen from 78% in 2018 to 64% in 2023, according to statistics released last October.
Fewer subscribers mean less money to pay for expensive sports and other programming, leading major providers such as Philadelphia-based Comcast to offer “tiered” subscriptions for regional sports at a higher price than the basic service. We are promoting the transition. Companies like Diamond have resisted, arguing that a sudden move to a higher service tier would not only disrupt their finances, but also create problems for teams whose distributors pay them access to their games. There is.
The Comcast power outage is currently only affecting baseball games, but if it lasts longer, it could affect other sports as well. For example, Diamond currently owns the pay-TV rights to games played by 38 teams in the National Basketball Association, National Hockey League, and MLB.
Teams affected by the power outage are the Atlanta Braves, Miami Marlins, Tampa Bay Rays, Detroit Tigers, Cleveland Guardians, Minnesota Twins, Kansas City Royals, St. Louis Cardinals, Cincinnati Reds, and Milwaukee Brewers. is. , Texas Rangers and Los Angeles Angels.
