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I grew up watching my beloved Baltimore teams on a network branded “Home Team Sports.” It was a regional sports network (RSN). Throughout the years, the business and brand changed hands multiple times. Ironically, the brand is now owned by my company, Playfly Sports. This wasn’t a coincidental acquisition; it speaks to how deeply our local sports are ingrained in our American DNA. As a little kid, growing up and owning the company with exclusive national sales rights to RSN content is America at its core.
The RSN model has worked for decades, but it’s shifting as technology expands options. The new models aren’t a cause for concern for those on the fence. The constants will remain: the games will be played, fans will still be rooting, and the advertisements will always run during the breaks. The new models will create opportunities to drive fan engagement and deepen advertising integration into distribution. There are five trends that both sports fans and advertising executives should note if they want to prepare for this expanded sports broadcasting model:
1. The RSN Isn’t Going Away.
Although more options are arising, the current model will be around for the foreseeable future and will continue to deliver some of the highest-rated local content in the country. Major distributors will continue working with RSNs to broadcast local games. Although a wider array of streaming services have cut into cable, many American households still have some form of cable, and the ratings prove that the engagement is higher than other programming.
Massive media conglomerates (like NBC, Diamond/Sinclair and Spectrum) and large regional groups (like NESN) will continue to own and operate regional sports networks, providing a convenient way to watch local teams without paying for extra services. Local live sports are the core driver of their markets. This model will continue, as live local sports are the cornerstone of the traditional TV model. With that said, fans are pushing for more flexibility and new ways to engage, thus some of the new models below.
2. Team-Owned Distribution
Another trend is teams owning media and distribution. Previously, this was less of an appeal for teams; the cable distribution pie was growing, and they could harvest significant value by licensing their rights to a third-party media company.
Unfortunately, the middle party often prevented teams from directly accessing their fans. That’s changed, however. For example, the Wizards and Capitals are owned by Monumental Sports and Entertainment, who recently acquired the NBC Sports Network, with the rights to broadcast sports in Washington from NBCUniversal. Now, the teams own the entire process: promotions, advertising, programming and distribution.
Distribution methods won’t change much — it will still be a cable network at its core but with new possibilities. Teams will now be free to make games available via their streaming service or license games to third-party streamers. Any standalone streaming services would be sold directly to consumers, allowing consumers to buy a team’s live games as an independent package. This flexibility hasn’t been before in local sports media.
3. Streamers Get in the Game
You didn’t think big tech would let all that engagement from the local live sports fans pass them by, did you? Streamers like Amazon Prime have acquired streaming rights for sports like local New York Yankees baseball and national Thursday Night Football. Other companies are stepping up to bid on these rights, too. As streaming evolves, these platforms understand the power of the local sports fan can drive business.
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Last year, YouTube won a hard-fought match for the rights to NFL’s Sunday Ticket. While this is an out-of-market network for NFL games, it illustrates local sports media trends. As content rights fragment into other forms of distribution, fans are given more choice over what they pay for versus the full cable bundle.
4. A Blast to the Past
Over the past five years, there’s been a resurgence in American broadband households using antennas for over-the-air (OTA) viewing. Sports teams are taking advantage of this change. For example, the Utah Jazz has moved its live local games from a traditional cable network to a local broadcast station for the upcoming season. OTA viewing is driven by ad revenue and affiliate/retransmission fees, but affiliate fees have decreased as cable subscriptions decrease. Ad revenue, however, is growing due to live local sports. The expanded reach of a local station being available both over the air and through cable distributors is a leading platform for pro teams and advertisers alike.
These station groups actively seek high-rated, quality content and are willing to bump lower-rated entertainment — or, in some cases, convert the local station to a sports-themed channel.
5. League-Run Media
The final trend entails pro leagues managing local media on behalf of a team. Last month, we partnered with the MLB to take over the production and distribution of all locally-aired San Diego Padres games — a first in history. Fans are searching for more opportunities to engage with their favorite teams, and leagues are stepping up to give them exactly what they’re looking for. Buying these rights and handling distribution adds significant costs, so leagues consider ad revenue as a way to offset those costs.
Local sports will continue to grow. Fans will continue to watch. Ads will continue to run. America’s ongoing love affair with sports means that brands and advertising will continue to play a key part in the local sports media business model.
Seek and Ye Shall Find
For fans, these trends make it be easier to access your favorite team’s games with new enhanced features and flexibility, but it may require some planning. Fans who want access to every game will have that availability at their fingertips but might find themselves paying more than a cable subscription — particularly if they subscribe to multiple platforms. There will be multiple outlets for local live sports games, but it’s nothing some preparation or a quick internet search won’t solve.
Long live the Home Team Sports fan!
Disclosure: Playfly Sports works with a number of MLB, NHL and NBA teams and their media networks.
