DirecTV adds local sports surcharge for some new subscribers
DirecTV is trying a new way to sell regional sports networks.
(Dan Krauss)
By Joe Flint
This post has been updated -- see below for details.
Satellite broadcaster DirecTV has quietly added a surcharge to some customers for sports channels separately on several of its most popular programming packages.
New DirecTV subscribers who live in areas where there are more than one regional sports network (Los Angeles has four -- News Corp.'s Prime Ticket and Fox Sports West and Time Warner Cable's SportsNet and Deportes) and want those channels are being asked to pay a monthly surcharge of $3. That fee is on top of whatever portion of the costs of the channels DirecTV passes on to its customers.
DirecTV has installed the surcharge on four of its packages, including Choice and Choice Plus. The surcharge started in September. A spokesman for the company said only about 20% of the markets around the country have more than one regional sports network -- although that number is on the rise as Comcast, News Corp. and Time Warner Cable increasingly turn to sports to develop new channels.
The move is significant because even though it is only for new DirecTV subscribers and only used in areas where there are multiple local sports channels, it could be seen as a first step toward selling sports channels separately. Sports channels account for a large chunk of cable bills as the rights to games continue to skyrocket. DirecTV has also tested this approach with some current subscribers as well, the spokesman said.
Companies that DirecTV's move will affect include News Corp.'s Fox Sports unit, Time Warner Cable and Comcast Corp. All three are players in the regional sports network game. In Los Angeles, Time Warner Cable recently launched two channels and landed the rights to the Lakers in an effort to compete against News Corp.'s channels here.
DirecTV's shift will likely be met with a backlash by those companies. One executive at a sports programmer who was not authorized to speak on the record said this is an attempt by DirecTV to paint regional sports networks "as the bad guys."
A DirecTV spokesman said the surcharge "only covers a small portion of the cost DirecTV is paying sports programmers to carry" the regional sports networks.
Dodgers talk TV with Time Warner Cable
Cable lobbyist warns of rising sports costs
Rising sports rights means bigger cable TV bills
Follow Joe Flint on Twitter @JBFlint.
This post has been updated to reflect that the surcharge is not optional. If a customer does not want local sports channels, then the lower cost entertainment package is the option.
INTERACTIVE: TVs highest paid stars
QUIZ: Celebrity voice overs
PHOTOS: Hollywood back lot moments
Get our daily Envelope newsletter
Joe Flint
Joe Flint is a former staff writer for the Los Angeles Times.
Behind the scenes on the 'surreal nightmare' within '1917'
Cinematographer Roger Deakins and production designer Dennis Gassner explain what director Sam Mendes was after in this pivotal scene and how they made it work.
Al Pacino and Robert De Niro: Five decades of friendship crowned with 'The Irishman'
Robert De Niro and Al Pacino approach acting from different places. But their friendship has sustained them through career ups and downs.
Antonio Banderas has won many awards for 'Pain and Glory.' It's time for the Oscar
Antonio Banderas gave the best performance with 'Pain and Glory.' Historically, the lead actor Oscar has gone to the actor who does the "most."
Performances we love: Christian Bale fools us again
An actor at the top of his game
'Parasite' was one of the best-acted movies of 2019. Why didn't the Oscars recognize that?
Bong Joon Ho's movie made Oscar history, but it also revealed the industry's blind spots about Asian actors.
'Jojo Rabbit,' '1917' — why do war films always grab Oscar's attention?
War works its way into five films this season. Why is it so popular? Maybe it's the underlying message of hope.
Demi Lovato is making a high-profile return to the Grammy stage
Singer Demi Lovato made good on a December tease that she'd be singing again soon: She'll perform at the Grammy Awards on Jan. 26.
Oscar nominee Cynthia Erivo feels 'bittersweet' as the only actor of color recognized
Cynthia Erivo reacts to her double Oscar nominations and being the sole nominee of color in the four acting categories.
Nine reasons why the 2020 Oscar nominations were not completely dispiriting
The academy didn't do great this year, but at least they handed six Oscar nominations for the Korean film "Parasite" and recognized Antonio Banderas and Florence Pugh.
'Joker' tops the nominations, with '1917,' 'Irishman,' 'Once Upon a Time' close behind