Time Warner Cable is set to take a massive loss on its deal for TV rights to the Los Angeles Dodgers. Writing in the New York Post, Claire Atkinson reports the the writedown is expected to be as high as $1 billion.
“Time Warner Cable and Dodgers fans are facing a second season of silence from West Coast TV distributors who, so far, are balking at the price for carrying Time Warner Cable’s SportsNet LA, which carries the Dodgers games exclusively,” Atkinson writes. “The cable operator paid rights owners, led by Guggenheim Partners, $8.35 billion over 25 years, but has not been able to get rival pay-TV operators to carry the network at around $5 per subscriber per month.”
As a result, about 70% of households in Southern California do not get the team’s games, Atkinson notes, with sources hinting that more of the same appears to be in the cards for the coming season. According to the report, the $5 price tag may be too high.
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