As trial was to start, settlement reached in MLB TV dispute

Bloomberg offers the following consequences of MLB region-locking: Phillies fans in Philadelphia are able to watch their home team only on the regional sports network – the MLB blocks these games from MLB.TV and Extra Innings in Phillies’ territory, even for subscribers of those services. The MLB tells NBC that’s a 23 percent drop from the cheapest option available now.

Major League Baseball on Tuesday agreed to sell single-team streaming rights to fans across the country. The plaintiffs in the case argued that competition was being limited by the current model, noting that regardless of which provider a baseball fan goes with, they have to deal with blackouts of certain games, depending on where they live.

Major League Baseball has had an antitrust exemption for more than 100 years, but in 2013 U.S. District Judge Shira Scheindlin ruled that was not a suitable defense in this case. Access to one team’s entire season of games will cost fans $84.99, and for an additional $10 (with an authenticated login), viewers can watch “in-market” games involving that particular team which previously would have been subject to local blackout rules.

Recently, MLB’s lawyers said they would change their sport’s packages similar to what the National Hockey League undertook when it settled its side of the lawsuit previous year. For example, New York Yankees fans living in Florida have had to buy a package of out-of-market games rather than just paying for the YES Network, which broadcasts the team’s games.

Lawyers for baseball had revealed in court papers this month that were planning to allow fans to buy single-team television packages for the first time this season. Baseball had defended a decades-old system of regional television contracts created to protect each baseball team’s area from competitors. “Baseball faces fierce competition, including from other sports offerings and an increasing slate of non-sports entertainment and leisure options”.

In most instances, a subscription to a team’s cable outlet is necessary to view games online, though the agreement contemplates eventually enabling some fans to watch games online without traditional cable subscriptions.