MLB Goes To Bat For TV Distributors

The launch success of the MLB Network on Jan. 1 with 50 million subscribers means that other new and existing sports leagues' TV enterprises may need to adjust their business strategies to ensure rapid growth.

Unlike the controversy surrounding the NFL Network, where cable operators want to put that network on a tier and make consumers pay extra, MLB Network was able to strike deals with cable operators on a basic cable tier.

That's because Major League Baseball gave big cable or satellite distributors Comcast, Time Warner, Cox Communications and DirecTV Group an equity stake in the services, which isn't the case with the NFL Network.

This happened because Major League Baseball originally offered up its Extra Innings pay-TV baseball package only to DirecTV. An uproar by cable operators and some federal officials pushed MLB to a partnership agreement with TV systems.

As a result, the NFL Network is considering new "partnerships" after resisting them. Analysts believe the NFL, the strongest financial sports league, was making a financial stand that was doomed from the start.

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The new MLB Network debuted Jan. 1 with 50 million cable homes, which makes it the best sports cable network launch in history, say analysts. In its first year, the channel says it will offer more than 1,400 hours of live programming and at least 26 live baseball games.

Like other cable sports networks, it will have one main news show, called "MLB Tonight," which will air every day at 6 p.m. except Sunday.

While MLB Network has enjoyed a strong launch among cable systems, it may have a difficult road ahead in getting national advertisers, considering the weak economy. One SNL Kagan analyst estimates the MLB Network may generate sales of $50 million in national advertising and $41 million to $51 million in yearly subscribers' fees from cable operators.

Analysts estimate that MLB gets 24 cents per cable subscriber per month, while NFL Network charges 88 cents per subscriber.

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