CBS Blasts TWC Over Los Angeles Sports Rights Fees

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via press release:

A CASE STUDY ON TIME WARNER CABLE & RIGHTS FEES

 

  • In Los Angeles, TWC is on the other side of the table in terms of rights fees.

 

  • Here are the facts that many don’t know about their fight for the consumer…

 

  • Half of LA Lakers games used to be on free over-the-air TV before TWC outbid everyone for the rights for $3 billion.

 

  • TWC then created a Lakers channel charging subscribers $4/month whether they watch the games or not.

 

  • This works out to $49 per subscriber for 52 exclusive games this year, or nearly $1/game.

 

  • TWC followed this up by paying nearly $8 billion for rights to the LA Dodgers.

 

  • And next season the Dodgers will reportedly also move from free over-the-air TV to a newly created TWC Dodgers channel that by industry estimates will cost even more than $4 per subscriber per month.

 

  • Neither the Lakers nor Dodgers TWC channels are available to consumers on an a la carte basis.

 

  • A class-action lawsuit has been filed against Time Warner Cable on the matter
  • Meanwhile, per local regulations, TWC discloses on the back of its bills that they are charging $20/month for “broadcast” television. 
    • This is 54% higher than they charged just two years ago, during which time it’s been made known that both the Lakers and Dodgers have been removed from broadcast.

     

    • Time Warner Cable has yet to address this matter publicly.

     

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