Are sports fans getting the shaft on pay-TV bill?
Despite no live games, fees stay in lineup
Your pay-TV program grid no longer features live pro sports, but your pay-TV bill includes the same sports-network fees as always. That’s yet another consequence of the novel coronavirus pandemic – and, like most others, months may pass before any resolution.
The underlying reason may resonate with anybody shying away from clicking the “Cancel” button on summer-vacation flights: The sports leagues aren’t ready to admit that this year is a lost cause or even accept that a large fraction of games won’t be played in 2020.
And until Major League Baseball, the National Basketball Association, the National Hockey League and other pro sports organizations reach such a decision, the nation’s sports network and other companies involved can’t accept the inevitable consequence.
“There is going to have to be some sort of a make-good,” said Daniel Cohen, senior vice president for media rights consulting at Octagon, a Stamford, Connecticut, sports and entertainment agency with a client list including NBA stars Stephen Curry and Giannis Antetokounmpo.
For now, customers are being told to keep watching for updates. A statement sent by Comcast, the largest TV provider in the U.S., captures this stay-tuned dynamic: “Any rebates will be determined once the NBA, NHL, and MLB announce the course of action for their seasons, including the number of games that will be played, and of course we will pass those rebates or other adjustments along to our customers.”
AT&T, the second-largest provider, offered a similar statement: “We are closely monitoring the situation and in contact with programmers and sports leagues as they plan their next steps. Any rebates we receive from programmers or leagues will be provided to our customers.”
That Dallas telecom giant is, however, now crediting back subscriber payments to MLB Extra Innings and MLS
Direct Kick, baseball and soccer channels that carry out-of-market games.
Michael Nathanson, founding partner with the research firm Moffett Nathanson, said via email that he doesn’t expect this impasse to break until cable and satellite operators themselves start withholding payments to sports channels. “The longer that sports stay off the air, the higher the likelihood that sports networks will be paid less,” he said.
On the other hand, pay-TV providers may be leery of losing sports channels if they play hardball this year.
“At least for the first year, a lot of them will be afraid of losing the rights,” said Alan Wolk, co-founder and lead analyst at the research firm TV[R]EV. He cited the recent deal between Microsoft and the NBA to create an online platform including streamed games as one possible future: “When do the leagues start taking back the rights and just start selling it directly?”
Meanwhile, cash-strapped subscribers weary of paying for sports channels now padded with classicgame reruns can try demanding refunds directly. Phillip Dampier, president of the cable-complaints clearinghouse Stop the Cap, said steadfast threats to cancel service have yielded the usual retention offers of discounts or free channels.
Once seasons start getting canceled or radically scaled back, Octagon’s Cohen advised sports leagues and networks to think about providing pay-TV subscribers more than just refunds – tickets to games, online or in-person meet-and-greet opportunities with players, and other fan experiences.