Comcast blacks out 15 regional sports networks in contract dispute

SAN FRANCISCO, California: Comcast has blacked out 15 regional sports networks provided by Bally Sports, intensifying a contract dispute with their distributor.

This move impacts games played by a dozen Major League Baseball teams across nine states. Diamond Sports Group, the distributor behind Bally Sports, labeled the blackout as "disappointing" and squarely blamed Comcast for refusing to engage in meaningful discussions.

On the other hand, Comcast stated that Diamond rejected several offers, including allowing Diamond to renew its existing agreement with Comcast for a year. Consequently, Comcast asserted that it no longer possessed rights to the sports broadcasts as of May 1 and had no option but to suspend them.

Comcast announced plans to credit its customers for the costs associated with the blacked-out broadcasts, with most customers automatically receiving monthly credits ranging from US$8 to $10.

Both companies declined to comment further beyond their prepared statements. Adding complexity to the situation is Diamond’s attempt to emerge from bankruptcy, which was declared just over a year ago due to heavy debt incurred in a previous financial transaction.

This dispute mirrors a larger issue facing sports broadcasts in the streaming era, which has led to significant declines in pay-TV subscriptions for cable and satellite providers. According to a study by Leichtman Research Group released last October, the percentage of U.S. households paying for live TV services dropped from 78 percent in 2018 to 64 percent in 2023.

Fewer subscribers mean less money for costly programming like sports, prompting providers like Philadelphia-based Comcast to advocate for moving regional sports into "tiered" subscriptions with higher prices. However, companies like Diamond resist, arguing that a sudden shift to a higher service tier would disrupt their finances and pose challenges for the teams they pay for access to their games.

While the Comcast blackout currently affects only baseball games, if it continues, other sports could be impacted. Diamond currently holds pay-TV rights to games played by 38 teams across the National Basketball Association, the National Hockey League, and MLB. The affected baseball teams include the Atlanta Braves, the Miami Marlins, the Tampa Bay Rays, and others.