$1.1 Billion Set To Return To Pay-TV Subscribers

Pay-TV providers in the United States may soon be shelling out refunds and credits worth a collective $1.1 billion to subscribers as compensation for the multiple sports cancellations related to this year’s COVID 19 pandemic. The companies were still collecting sports-programming fees despite severe disruptions to the sports schedule and the cancellations of thousands of events including college basketball’s March Madness and games across Major League Baseball (MLB), the National Basketball Association (NBA) and the National Hockey League (NHL).

The payouts come after months of cable providers collecting insurance settlements and refunds from various leagues and regional sports networks.

Verizon was the first of the big pay-TV providers to announce that customers could expect repayments in the form of credits on their bills. 

In a statement the company said, “We at Verizon remain resolute in our plan to pass on the COVID-related refunds that we receive from Regional Sports Networks to impacted Fios TV customers. We are pleased to begin issuing bill credits to these customers next month. Impacted Fios TV customers will see a credit in their December 2020 bill statement labeled as “RSN Credit.” We anticipate that additional refunds may come to Verizon in 2021. Eligible Fios TV customers will be notified when credits from such refunds will be applied to a future bill.” 

Charter Communications will be crediting as much as US$218 million back to pay-TV customers, estimated at $14 each. Dish Network Corp. will be providing customers with bill credits as well as free replacement sports coverage.  AT&T plans to give ‘courtesy adjustments’ to subscribers who paid for regional sports channels from April to July. These customers will be credited with the exact amount that the company is refunded by the sports networks. 

Across the pond, providers have been grappling with the same issues. The English Premier League agreed to return £170 million (US$213.5 million) to Sky Sports. The UK pay-TV network allowed subscribers to pause their service during the break from action. Sky has also engaged in talks over rebates with other sports bodies including Formula One’s owner Liberty Media and national governing body, the England and Wales Cricket Board (ECB). 

Sports programming has been adversely affected by the pandemic. Events which would usually have occurred during the spring and summer all combined instead for a packed Fall schedule with several overlaps. Ratings are down across the board. While numbers for the NFL remain gaudy, viewership has still slightly dropped from the same time last year. The rest of the industry has seen a much steeper decline. MLB’s division series and league championships plummeted 40 percent and 32 percent respectively. The World Series featuring the Los Angeles Dodgers and the Tampa Bay Rays fell 36 percent from 2019’s matchup between the Washington Nationals and the Houston Astros. An average of 12.62 million watched Dodgers clinch the series in six games versus the 23.2 million who viewed last year’s decider on Fox. Overall, the NBA and NHL playoffs dropped by 37 and 38 percent, with their finals falling 49 percent and 61 percent from 2019. The final round of the U.S. Open golf championship fell 56 percent from last year.