Smart tempered thoughts below on how it is still VERY early for local broadcasters to declare victory over RSNs in the race for local sports rights; remember, teams will be dealing with massive TV revenue holes that OTA reach alone will not even come close to replicating in the near-term, if ever. The below commentary via John WallStreet & Patrick Crakes lays out one scenario (tiered RSN model); the NBA's upcoming national rights deals - which may now also include some form of local rights - may provide another. https://lnkd.in/gUDRRQYV
In addition to Tim and Matt's comment, the convergence of OTA and OTT in homes bring significant extended revenue opportunities for teams. From multi-device viewing, to hyper targeted dai, merchandising, fanbase FAST/VOD/Live added content experiences with team/players/staff, plus all the community intersections with branding, charity, growth and lastly direct interactions build overall dedication and loyalty across big paying sponsors. Just to name 5 quick ones off. Not saying this because FreeCast is making this happen, but cable is a copper wired infrastructure rotting in the ground everyday but more so because bandwidth is going to the sky as a form of delivery, regardless of who brings it albeit ATSC, 5G /10G, or Musk. Cable based trans fees are a shrinking commodity, and streaming is currently lost soles floating wildly uncontrolled in space needing a space station for consumers to board. So while these heads of streaming companies continue to purchase scattered pieces, they are busting up sports. The last great American Revolt is mounting for those who just want to preserve their local pastimes and what's left of spirited competition and pride....the broadcasters are the pinpoint source of that last bit of town pride.
📝 Journalist covering the business of media & tech | 📰 Publisher, TheDesk.net
12moIt's important to remember that TV revenue, while a decent chunk of the pie, is only part of the equation. Teams also factor in ticket sales and merchandising, and it's reasonable to believe that teams see increased revenue from both when sports fans have frictionless access to live games — whether it's on broadcast TV or through an a-la-carte streaming service. If you're a sports team, you're going to put more butts in the seat and have long-term fans if those fans have easier access to your games. "Easier" access could mean the difference between paying $80+ per month for a streaming cable solution that offers one or more RSNs, and $20 a month for an a-la-carte streaming RSN (or watching the games for free on broadcast TV).