SAN FRANCISCO — Comcast has blacked out 15 regional sports networks offered by Bally Sports, escalating a contract dispute with its distributor.
The cut affects games played by a dozen Major League Baseball teams based in nine states. Diamond Sports Group, which distributes the networks under the Bally name, called the blackout “disappointing” and blamed Comcast for refusing to “engage in substantive discussions.”
Meanwhile, Comcast said Diamond turned down several of its offers, such as allowing Diamond to unilaterally renew its existing contract with Comcast for one year. As a result, Comcast said, it no longer held the rights to the sports broadcasts as of Wednesday and had no choice but to discontinue them. It said it will credit its customers for costs associated with blocked streams, saying most will automatically receive monthly credits of $8 to $10.
Neither company would comment beyond prepared statements.
Complicating matters is the fact that Diamond is working to emerge from bankruptcy, which it declared just over a year ago, as a result of heavy debt incurred in a previous financial transaction.
The dispute reflects a broader reckoning approaching sports broadcasts in the streaming era, which has led to steep declines in pay television subscriptions, both cable and satellite. According to a Leichtman Research Group study released last October, the percentage of US households paying for these live TV services has dropped to 64% in 2023, down from 78% in 2018.
Fewer subscribers mean less money to pay for expensive programming like sports, and leading providers like Philadelphia-based Comcast have pushed for regional sports to be moved to “tiered” subscriptions priced higher than the basic service. Companies like Diamond resisted, arguing that an abrupt switch to a higher level of service would disrupt their finances and also create problems for the teams that distributors pay for access to their games.
The Comcast blackout currently only affects baseball games, but if it goes on long enough, other sports could be affected. Diamond, for example, currently holds the pay TV rights to games played by 38 teams from the National Basketball Association, the National Hockey League and the MLB.
The teams affected by the blackout are the Atlanta Braves, Miami Marlins, Tampa Bay Rays, Detroit Tigers, Cleveland Guardians, Minnesota Twins, Kansas City Royals, St. Louis Cardinals, the Texas Rangers and the Los Angeles Angels.
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