Somebody is going to have to pay for the billions that regional sports networks are shelling out for rights fees to franchises. And that somebody will be you.
Yet another example.
From Multichannel News:
DirecTV will expand its regional sports network surcharge in the spring to include existing customers chairman and CEO Mike White told analysts Thursday.
DirecTV began implementing a $3 monthly surcharge in August for regional sports networks in markets that had multiple RSNs, but only to new customers. That surcharge, mainly in markets like New York and Los Angeles, will expand to existing customers in those areas in the spring, White told analysts on a conference call to discuss fourth quarter results.
Other distributors have followed DirecTV’s lead with the RSN charge – Verizon’s FiOS TV began implementing a $2.42 monthly charge for RSNs in California, Texas and Florida in February, with plans to expand to its remaining sates in March. In Maryland and Virginia, the surcharge will take effect in April.
Analysts have expected other distributors to follow suit to help offset the high costs of RSNs, but so far no cable operators have taken the bait.
White has been a vocal opponent of rising programming costs, and on the conference call, said the surcharge doesn’t come close to covering its RSN costs.
“I think it’s a judgment you have to make based on responsible churn,” White said. “We’ve made choices not to carry certain sports unless we can carry them ala carte.”
Maury Brown, writing at Bizofbaseball.com, believes consumers have reason to be concerned.
Deals will continue to be brokered as media rights deals expire, but the battle to get them on the major carriers, or getting the massive deals that have been recently inked, will continue to be an issue.
Of course, none of this is good for fans. While the financial flexibility is something every sports fan loves to see their favorite club have, if it means a large spike in their cable or satellite TV bill, it comes with a price. The pin is positioned near the bubble. When will it make contact is the question.
I have had Direct TV for more than 2 years. I recently added a Genie Home DVR and all of a sudden am being charge the Regional Sports Fee “Which supposedly was only for New Customers”. I talked to Direct TV and they said it would stay and not be refunded and If I wanted it removed I would have to change my plan and lose 88 channels of service. I have NOT changed packages since I started with Direct TV; have always had the Ultimate Package but only just started getting charged $1.93 on a Separate Charge that does not show up on my paper bill. I didn’t even know I was being charged until I logged into my Online Account for the first time today. This cannot be legal; arbitrarily charging more once they have me hooked into a 2 year plan with hefty fees for early cancellation! What can I do????