Commentary

TV Network Blackouts And Then Some: What About Dropping Channels Outright?

One can get too weary of those TV "blackouts," where pay TV providers and big TV network groups warn of a negotiation deadline approaching-- a threat of the disruption of being unable to access popular TV channels.

Still, we nearly always know the ending: An agreement is reached, and we go on.

But what about other deals where a pay TV provider just isn’t interested any longer -- where they just don’t want to carry TV networks with little or no reason?

It seems this is where new sports-focused FuboTV is at now when it comes to the AMC networks channels -- a carriage deal that expired at the end of last year.

“FuboTV's content agreement with AMC Networks expired at the end of 2022,” says a FuboTV representative in an email to TV Watch.  “We are focused on super-serving our passionate sports customers...”

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This is plain and simple: They and their viewers are not interested, apparently. We can make some educated guesses as to some deeper reasons.

As already mentioned, FuboTV is a sports-focused virtual pay TV provider, with 1.2 million subscribers. Because of its emphasis on sports TV, one could expect the costs associated with FuboTV are high, versus other content channels.

But at the same time, FuboTV does talk up that it is more than just sports. There are still other entertainment channels on the service. The FuboTV rep adds that its “mission is to provide leading sports, news and and entertainment content while keeping costs reasonable for consumers.”

All this helps some to justify its somewhat higher price -- at $69.99 a month.

Some smaller, newer virtual services just like Philo ($25/month) and SlingTV (as low as $40/month) are cheaper and carry AMC Networks. Philo carries no sports-associated networks. Sling TV has a variety of packages that can include higher priced channels, including sports. Sling's least expensive package contains ESPN.

Still, it’s rare to see a pay TV provider -- at least in the last couple of years -- where the service just cut back on channels for existing pay TV packages. Why? Because as an all-you-can-eat service, many analysts might be asking why they aren't reducing their monthly subscription fees. That is something companies don't like to do.

For its part, FuboTV is going deeper into sports, giving a now rare new carriage agreement for some troubled regional sports networks by way of an agreement to launch Sinclair Broadcast Group's Bally Sports, which starts up in the coming weeks. Typically these are premium “tiered” channels that require subscribers to pay more.

The FuboTV decision makes some sense in a world for all traditional pay TV providers -- including virtual pay TV providers -- which are increasingly under pressure financially. FuboTV is still operating at a net loss, trimmed in the fourth quarter to $112 million.

But what about its monthly price fees -- in reference to the drop of AMC? Perhaps it lies in this added statement from FuboTV: “No adjustments have been made at this time.”

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