FCC Confirms To Kerry It Will Examine MLB/DirecTV Deal

FCC Chair Kevin Martin, in a letter to U.S. Sen. John Kerry (D-MA), confirmed that the FCC will complete a full investigation of the proposed DirecTV/MLB deal for the Extra Innings out-of-market package. In the letter, Martin said once the commission is briefed, it would report on “the implications for consumers and any recommended changes to the law to ameliorate any harms to consumers.” Martin added, “I am concerned whenever consumers cannot purchase the programming they want or are forced to purchase programming they don’t want.” In a statement, Kerry said, “It’s good to know that [Martin] also has concerns about a deal that has the potential to deny choice to so many consumers.” Meanwhile, DirecTV rival Dish Network issued a statement calling the deal “anti-competitive and anti-consumer.” Dish said the deal is “particularly egregious given that these games until now have been carried by multiple cable and satellite TV providers. Thus, we will be forced to take away valuable programming from existing subscribers.”

SHORTER EXCLUSIVITY? In Thursday’s Closing Bell, THE DAILY cited industry sources as saying that DirecTV's exclusive hold on the package will only last for the first three years of the seven-year deal, potentially opening up an opportunity for other carriers to get Extra Innings starting in 2010. Such a provision, originally part of DirecTV's deal with the NFL for "Sunday Ticket" before the satellite carrier extended its hold on the programming, could ease angry fan sentiment surrounding the agreement. A shorter window of exclusivity, cable sources said, is also timed around the launch of MLB's planned channel. The belief is that MLB would be able to get cable distribution for its channel if it also offers cable operators Extra Innings (THE DAILY).

NOT DONE YET: In N.Y., Richard Sandomir cites sources as saying that the exclusivity “will not be relaxed, at least not when the deal is announced.” Sandomir notes letting the exclusivity lapse “might have eased a bit of the outrage. And, potentially, it might have softened the guaranteed fulminations on Capitol Hill when baseball and DirecTV officials testify sometime soon before the Senate Commerce Committee.” But if the exclusivity is “eventually eased, DirecTV would surely reduce its payments” (N.Y. TIMES, 2/23).