The logo of the YES Network. (Graphic designed by The Desk)
The logo of the YES Network. (Graphic designed by The Desk)
Comcast’s pay television customers will continue to have baseball from the New York Yankees and basketball from the Brooklyn Nets for at least a little while longer.
Late Monday evening, Comcast and the YES Network issued a joint statement saying an agreement has been reached that keeps the regional sports network on Xfinity TV systems in the New York City metropolitan area. The affirmation came about four days after the two extended their prior agreement to avoid a programming blackout, and under threat of some unspecified action by the Federal Communications Commission if both sides did not reach a new deal.
“Comcast and YES have reached an agreement for continued distribution of the YES Network,” the joint statement released on Monday said.
It wasn’t clear if the new deal reached late Monday evening was a renewal of its prior extension or a multi-year deal that keeps YES Network on Xfinity TV for several years, as is customary with distribution agreements. Xfinity TV does not serve New York City itself, but does reach sports fans in parts of New Jersey, Connecticut and New York state within the Yankees broadcast area.
The deal was landed mere hours after the YES Network filed an informal complaint with the Federal Communications Commission, alleging Comcast was demanding to relegate the channel “to the Siberia of a tier.”
Comcast has been aggressive in moving regional sports networks to its “Ultimate Tier” of service, its highest-priced pay TV plan that includes league-owned sports channels like NFL Network, NBA TV, MLB Network and NHL Network, along with niche digital channels like Nicktoons, MTV Live and Teen Nick.
Previously, Comcast allowed subscribers of its Expanded Basic package to watch YES Network programming, including live Yankees and Nets games, along with pre-game and post-game shows and documentaries. Expanded Basic is less expensive than the Ultimate package, though it also includes fewer channels.
Comcast didn’t affirm whether it wanted to move YES Network to a more-expensive tier, but its own regional sports networks — including NBC Sports Boston, NBC Sports Bay Area and NBC Sports California — moved into the Ultimate tier earlier this year.
Comcast says it has reached deals with nearly two dozen other regional sports networks to move their channels across packages in recent years. But YES Network wanted to maintain an outdated distribution model while raising the price Comcast must pay for the continued distribution of its channels, a spokesperson affirmed early Monday morning.
The same situation played out in 2021, when Comcast dropped MSG Networks from Xfinity TV, leaving fans of the New York Knicks, New Jersey Devils, New York Rangers, Buffalo Sabres and Gotham Football Club (FC) scrambling for an alternative way to watch live games.
These days, the one-size-fits-all solution is the Gotham Sports app, which offers streaming access to live sports and other programming from MSG Networks and YES Network, although it doesn’t come cheap: MSG Networks costs $30 per month or $280 per year when purchased through Gotham Sports, while YES Network costs $25 per month or $240 per year. Gotham Sports doesn’t require a contract to receive online versions of either channel — sports fans only need a broadband Internet connection and a device compatible with the Gotham Sports app.
Still, Xfinity TV can be a preferred way for sports fans to watch live games, owing to the fact that Comcast distributes broadcast networks (ABC, CBS, CW Network, Fox and NBC) along with regional and national sports channels like ESPN, Fox Sports 1 and CBS Sports Networks — no switching into or out of apps needed.
For this reason, FCC Chairman Brendan Carr seemed to be particularly aggrieved at the notion that Comcast and YES Network might engage in a prolonged dispute that lasts more than a few days, if not a few weeks (or a few years, as the MSG Networks situation has shown).
Brendan Carr participates in a panel discussion at the 2018 Conservative Political Action Conference. (Photo by Gage Skidmore)
Brendan Carr participates in a panel discussion at the 2018 Conservative Political Action Conference. (Photo by Gage Skidmore)
Over the weekend, Carr wrote on social media that he was “aware that the YES Network could soon get dropped from Comcast systems,” and urged “a quick and favorable resolution for the benefit of everyone.”
“The FCC does have authority to step in and address claims of discriminatory conduct,” Carr wrote.
The FCC’s authority concerning matters between cable TV platforms and regional or national pay TV channels is actually fairly limited. Under the agency’s rules, both sides are required to negotiate toward a new agreement in “good faith” — a term that has never been definitively defined, and only subject to interpretation after one or both sides lodge formal complaints. The FCC can impose a sanction (usually a fine) against a pay TV distributor that uses underhanded tactics to squeeze out a better deal for itself during carriage negotiations.
However, the FCC can’t force a private cable or satellite TV platform to carry a regional or national channel that it does not want, even if Carr or anyone else disagrees with the decision. Comcast justifying a programming-related blackout on the premise of distribution fees would have been a legitimate reason for not carrying YES Network — just as it does not carry MSG Networks — and, under current rules, the FCC would not have been able to bring a direction action against it.
Likewise, the FCC can’t force YES Network or any privately-owned regional sports or national pay TV network to agree to terms they feel are unfavorable to their business. The FCC can scrutinize deals involving local television stations and their owners, though, given that they hold broadcast licenses issued by the agency and are subject to certain carriage distribution rules.
That said, Carr has not shied away from making it known that private companies that are at least partially regulated by his agency will face immense scrutiny should certain business practices rub him, the FCC or President Donald Trump the wrong way.
Comcast is already facing a probe over the company’s implementation of diversity, equity and inclusiveness (DEI) programs, though the scope of the FCC’s authority to act is likely limited to Comcast’s regulated broadband Internet and cable TV services and its licensed NBC-owned and Telemundo-owned stations.
Earlier this month, Carr said he was subjecting Disney to a similar investigation over its DEI programs, despite the fact that the company has walked back some of its diversity initiatives over the past year. Disney owns eight FCC-licensed broadcast TV stations that carry ABC programming.