The attorney general of New York State is adding her voice to a growing chorus of critics demanding rebates from pay-TV operators of hefty sports programming fees during the COVID-19 time-out for s…
, broadcasters like CBS and NBC and regional networks like YES charge MVPDs substantial fees stemming from multi-billion-dollar sports licensing deals. Distributors like Comcast, Charter, Dish Network, AT&T and Verizon, in turn, pass the cost on to their customers.
James estimates that customers are paying an average of $20 per month for sports programming, and in the past two months have received all but nothing. ESPN’s live coverage of the NFL Draft and its broadcast of Michael Jordan documentary serieshave drawn big ratings but can’t be considered live sports. Other networks have filled their programming days with reruns of past classics.
With the economy reeling due to the pandemic, major pay-TV providers have also been appealing to programmers to offer them rebates or make-goods. As customer complaints have proliferated on Twitter, TV providers have tried to emphasize their view that they are caught in the middle.
Rich Greenfield, an analyst with Lightshed Partners, estimates that most U.S. pay-TV customers are paying about $40 to $50 a month for sports programming “that they are not actually receiving.” In the past decade, Greenfield wrote in a blog post, “sports programming costs have risen to absurd levels, damaging the price/value of the multichannel video bundle and helping to accelerate cord-cutting/cord-shaving.
Once the NBA, NHL, and MLB announce the course of action for their seasons, including the number of games that will be played, Xfinity could receive rebates or price adjustments from the regional sports networks…..
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