Thomas Friedman once wrote: "This historical debate is over. The answer is free-market capitalism."
There are few who argue with this statement. We have essentially prospered as a nation by removing trade barriers and promoting free trade of goods and services. Obviously, this method can create some problems, but, overall, it has worked tirelessly for the last 40 years, growing the American economy alongside the rest of the world.
One of the biggest problems that has faced free-market capitalism is monopoly development. The U.S. government has broken up plenty of them throughout the decades. In recent years, though, many operations have been allowed to consolidate and buy out the competition, leading to higher prices.
Major League Baseball has a clear monopoly when it comes to professional baseball. Federal Baseball Club v. National League clearly defined baseball as a monopoly.
While the game has changed significantly, baseball has retained its exemption from the Sherman Anti-Trust Act and from the regulation of interstate commerce. Despite Curt Flood and the multiple challenges brought to the Supreme Court, Major League Baseball stands defiantly against the free market.
And this is where the consumer begins to feel the pinch.
While baseball must compete against Hollywood, video games, and other sports for your entertainment dollars, for those who are baseball addicts, there is really only one place to go. With the encouragement of exclusive media deals, Major League Baseball has made it even more difficult for fans to access the sport that they love. This stands as a dramatic and gigantic step backwards in the face of the free market.
Completely ignoring all of the problems with MLB.TV that viewers in Iowa and Nevada face when it comes to trying to watch baseball and completely ignoring the fact that viewers must subscribe to a cable or satellite service to watch their home team, baseball has ruined the postseason with their available MLB.TV package.
Last year, TBS signed a seven-year deal for exclusive rights to cover the first round of the MLB playoffs and one of the divisions of the second round. ESPN gets to cover the other division of the second round. Fox has rights to the World Series. These exclusivity agreements deny baseball fans exactly what they want: the chance to watch the game.
By 2008, a Dodgers fan in Florida should be able to pop open his cell phone just in time to watch the first pitch against the Cubs tonight. Instead, he will have to wait until he gets home, and, hopefully, he will have subscribed to one of the outrageous cable/satellite plans in his area. Otherwise, he is stuck listening to the radio.
By 2008, a Phillies fan in Seattle should be able to log on from work and watch Philadelphia take on the Brewers during his lunch break via his computer. Instead, he will have to wait until 45 minutes after the game is over to watch on his laptop.
By giving exclusive rights to TBS, MLB limited its ability to make money off of baseball fans. Instead, MLB chose to make money off of TBS and let the fans suffer.
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