Comcast cable customers were hit with a blackout of Bally Sports regional networks, leaving fans of 11 MLB teams without access to the networks that air local games. The blackout is a result of negotiations breaking down between Comcast and Bally Sports’ operator Diamond Sports Group. The dispute over terms occurred as consumers continue to cut pay-TV subscriptions in favor of streaming, putting pressure on the regional sports network business.
The blackout affects fans of teams such as the Detroit Tigers and Minnesota Twins, while fans of NBA and NHL teams will only feel the impact next season if the blackout continues until then. Diamond Sports Group, which has been under bankruptcy protection since last year, claims that Comcast “refused to engage in substantive discussions” despite offering terms similar to those reached with other distributors.
Comcast, on the other hand, stated that Diamond had the right to extend the agreement by another year but chose not to exercise it. The cable provider expressed its desire to continue carrying the networks but claimed that Diamond declined multiple offers. As a result of the blackout, Comcast will be providing affected customers with $8 to $10 per month in credits.
The breakdown in negotiations primarily stemmed from disagreements over how quickly Comcast could shift the Bally Sports networks into a tiered model. This model would require customers to opt into packages that include the channels at a higher rate, rather than having them included in broader cable packages.
Pay-TV distributors like Comcast have been losing customers as more individuals opt for cheaper streaming options. Comcast lost 487,000 subscribers in the first quarter alone. To adapt to the changing landscape, some regional sports networks have started offering streaming options at a price point that complements the pay-TV model. Diamond holds streaming rights for five of the MLB teams affected by the blackout.
While discussions with Charter Communications, DirecTV, and Cox Communications are ongoing, Diamond has already signed multiyear deals with Charter and Cox. DirecTV also reached a deal with Diamond to continue carrying the networks. These agreements extend the terms of the current deals, with a gradual shift to a tiered model expected over time.
It is worth noting that the Bally Sports networks are currently absent from major internet-TV providers like YouTube TV and Hulu+ Live TV. Diamond filed for bankruptcy last year and is looking to emerge from it in the coming months under the ownership of its creditors. The company has a hearing scheduled in June to confirm its reorganization plan.
The blackout of Bally Sports regional networks for Comcast customers highlights the challenges faced by regional sports networks in an era of cord-cutting and streaming services. As negotiations continue and the landscape of television distribution evolves, fans are left hoping for a resolution that allows them to once again enjoy their favorite local games.
