Thursday, February 17, 2011

Letter to MLB: Stop Monitoring & Start Acting!

The following letter has been mailed to Major League Baseball’s headquarters. If you agree that the infamous Hawai`i MLB Blackout must end, send your own letter. A third blacked-out season is about to begin.


February 17, 2011


Mr. Christopher S. Tully
Senior Vice President, Broadcasting
Major League Baseball
245 Park Avenue
New York, NY 10167


Dear Mr. Tully:


I am one of many baseball fans in Hawai`i asking Major League Baseball to intercede in the business standoff between Time Warner Cable and Comcast Sports. Two subsidiaries of the latter have television rights to Bay Area baseball teams – Comcast Sports Net Bay Area (Giants) and Comcast Sports Net California (Athletics).


As you are aware, Hawai`i is in the “home television territory” of both teams. We’re also in the home territory of four other teams – the Dodgers, Angels, Mariners and Padres. PrimeTicket and FOX Sports West, the regional sports networks (RSNs) for the Dodgers and Angels respectively, have long had a business arrangement with Time Warner to carry the two Los Angeles teams on Oceanic Time Warner in Hawai`i. The Mariners and Padres have waived their “blackout rights” in Hawai`I, even in the absence of a deal with Time Warner.


Comcast and Time Warner have not reached a similar deal, and for the past two seasons Giants and A’s games have been blacked out in Hawai`i, including streaming on MLB.com. You said in your letter to U.S. Representative Mazie Hirono (D-HI) dated December 15, 2010: “Please rest assured that MLB is committed to serving the best interests of our fans in Hawai`i and that we will continue to monitor the progress of these carriage negotiations.”


Clearly, Mr. Tully, the negotiations have gone nowhere for the past two years, and there is no indication from Time Warner and Comcast that they’re going anywhere now. Your letter also seemed to place the blame on Time Warner because “Oceanic Time Warner has not yet agreed to carry the two Comcast RSNs.”  That certainly is true, but your conclusion that the fault is all Oceanic Time Warner’s seems strange in having apparently prejudged the issue in Comcast’s favor. Here is the latest email I’ve received from an Oceanic Time Warner marketing representative, dated February 15, 2011:

“For years the only regional sports available to us was provided by Fox West and Fox Prime Ticket. Rates were very low and both have been carried on our Analog Expanded Basic for over 30 years. It wasn’t until Comcast’s recent acquisition of Bay Area Giants and Oakland A’s that there was even the possibility of carrying those teams but unfortunately, the rate being asked for access to 2 teams of interest in Hawaii makes no business sense.


“Because of our ‘close’ proximity to the market, they are prohibiting us to put the Giants and A’s on a sports tier. That means it would go on our standard service and all our subscribers would see a rate increase on their monthly cable bill, north of 6%.”

Mr. Tully, this issue involves two companies that have failed to work out a deal -- one that insists on charging a fee that the other believes is too high and refuses to pay. This could go on forever, and notwithstanding your suggestion that Hawai`i baseball fans simply switch to DirecTV if we want the games so badly, that is a non-starter, and you should rethink your position. DirecTV has far fewer subscribers than Oceanic Time Warner; the market clearly has spoken with regard to which service Hawai`i subscribers prefer.


Please also rethink and/or clarify this statement in your letter to Rep. Hirono: “While we are not satisfied with the current distribution of Giants and Athletics game telecasts in Hawai`i, we continue to believe that fans in the State are best served by the broad availability of the RSNs that carry Giants and Athletics game telecasts, and we would not want to see their access be limited to the purchase of a separate subscription package.”

Your comment appears to defend DirecTV’s interests in carrying the Giants and Athletics games here. Does MLB benefit financially if DirecTV is the only carrier of games in Hawai`i? Is MLB pledged to defend DirecTV to the exclusion of any other potential service provider? Is MLB in a conflict of interest with the vast majority of baseball fans in Hawai`i – promoting MLB’s interests ahead of ours?


MLB’s “monitoring the progress” position clearly is not in the best interests of baseball fans here, so please respond to this letter by stating what MLB is doing to end the impasse between Time Warner and Comcast Sports.  Please do something to actually help us! Your response will be posted at the web site printed at the top of this letter.


Sincerely,
/signature/
Doug Carlson


cc:  Rep. Mazie Hirono

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