CBS Blasts TWC Over Los Angeles Sports Rights Fees
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.