The satellite, called DirecTV-7S, is the second spot-beam satellite on the production line. The first, DirecTVo4S, will launch later this year.

Strike three, you’re out!

We do admit cable companies have held a monopoly for years over satellite, but still the timing of this particular deal makes little sense. There are 90 million American homes that subscribe to cable or satellite, but there are just 16 million DirecTV subscribers. If Major League Baseball is disappointed with its 750,000 subscribers, this is not the way to boost numbers. This is a way for fans to lose interest in baseball.

DirecTV put a carrot on the table and promised a new baseball channel, which begins in 2009, and MLB.com may excite a few fans. But the bigger market is clearly in cable, and Major League Baseball whiffed on perhaps making an even better deal for the future. Who’s doing the negotiating for Major League Baseball? Instead, Major League Baseball has succeeded in alienating its prime fan base. This is completely ignoring supply and demand, which, again, makes little sense.

Sen. John Kerry has asked Kevin Martin, the chairman of the Federal Communications Commission, to investigate the deal. Some congressmen suggest baseball’s antitrust exemption should continue only if baseball avoids exclusive deals such as this. Fans have even started a petition to keep Extra Innings on cable and could potentially move toward a lawsuit.

Spot-beam satellites make it easier for DirecTV to offer local channels to U.S. markets, a quality that helps the satellite provider compete with cable operators and comply with a federal law.

Joel Sam 202-595-1500 ext 511

Fax: 202-478-1722

posted by Administrator at 9:03 am & filed under Dish Network |