From the moment the deal was announced, many questioned the unprecedented price Time Warner Cable (TWC) agreed to pay for the exclusive right to distribute Los Angeles Dodgers games through its SportsNet LA channel. Though the deal was deemed a coup for the team’s new owners, TWC acknowledged the risk that it could lose money on the Dodgers. Would this be the deal “where the big TV money in baseball bubble pops”?
The free market answer is, “Yes”. When TWC demanded that SportsNet LA be carried on the basic service tier at rates of $4-$5 per subscriber, DirecTV balked. The satellite operator was willing to place a bet in the marketplace that its subscribers would rather skip the Dodgers than be forced to bail TWC out of its bad deal, and so far, its bet has paid off. Fans feel like its the Dodgers who let them down. Read More