The Los Angeles Dodgers finished eight games back in the National League West last year. But a so-so season clearly doesn't matter in the world of cable sports networks. Time Warner Cable -- here in L.A. -- announced a $7 billion, 25-year deal for a Dodgers baseball channel today. Yet another regional sports network on your cable guide, and one that you'll be paying for whether you like it -- or sports -- or not.
New York Times media writer Brian Stelter says the deal breaks down to about an extra $5 per subscriber, of which a good chunk will be passed down to the consumer.
Even if you are not a Dodgers fan, the cable companies argue that such a bundle is good for everyone. "You could look at this way," Stelter says. "All the money that gets put in every month gets divvied up -- not unlike an angel investor who goes out and makes bets on different companies."
In Time Warner's case, it goes and make bets on different channels, continues Stelter. "And they say they are able to bet on more channels than they otherwise would thanks to the investment that comes in every month."