Bally Sports RSNs Are Reportedly Preparing For Bankruptcy

[Bruce]

This has nothing to do with Bally/Diamond, but it does affect the overall RSN Business model.

Comcast and regional sports network SportsNet Pittsburgh struck a deal to keep local games on the provider’s system with one pricey change.

SportsNet Pittsburgh, home of the Penguins and Pirates games, will move from Comcast Xfinity’s Popular TV package to the Ultimate TV package.

and then this-

Comcast started to inform customers that Root Sports Northwest will be moving to its Ultimate package starting immediately. So, if you want to watch that your favorite NBA and NHL teams in that area, you will need to pay more.

The reason why this is a big deal, the only ones who might upgrade are the few sports fans that cannot go without ( and I have proven over and over, that is a extreme low minority of viewers, no need to do it again).

The RSNs will then lose the per sub fees of that tier since the majority will not switch, the ones who do not watch, but the RSNs need, because more losses will put them closer to ending service.

This is a real big deal for Pittsburgh, the primary cable company there is Comcast, the other one is Fios, who is getting rid of their Live TV Service.

Comcast Moves Another RSN to a More Expensive TV Package | Cord Cutters News

Comcast and regional sports network SportsNet Pittsburgh struck a deal to keep local games on the provider’s system with one pricey change. SportsNet Pittsburgh, home of the Penguins and Pirates games, will move from Comcast Xfinity’s Popular TV package to the Ultimate TV package. The Popular TV...

cordcuttersnews.com

 

[NashGuy]

This has nothing to do with Bally/Diamond, but it does affect the overall RSN Business model.

Comcast and regional sports network SportsNet Pittsburgh struck a deal to keep local games on the provider’s system with one pricey change.

SportsNet Pittsburgh, home of the Penguins and Pirates games, will move from Comcast Xfinity’s Popular TV package to the Ultimate TV package.

and then this-

Comcast started to inform customers that Root Sports Northwest will be moving to its Ultimate package starting immediately. So, if you want to watch that your favorite NBA and NHL teams in that area, you will need to pay more.

The reason why this is a big deal, the only ones who might upgrade are the few sports fans that cannot go without ( and I have proven over and over, that is a extreme low minority of viewers, no need to do it again).

The RSNs will then lose the per sub fees of that tier since the majority will not switch, the ones who do not watch, but the RSNs need, because more losses will put them closer to ending service.

This is a real big deal for Pittsburgh, the primary cable company there is Comcast, the other one is Fios, who is getting rid of their Live TV Service.

Comcast Moves Another RSN to a More Expensive TV Package | Cord Cutters News

Comcast and regional sports network SportsNet Pittsburgh struck a deal to keep local games on the provider’s system with one pricey change. SportsNet Pittsburgh, home of the Penguins and Pirates games, will move from Comcast Xfinity’s Popular TV package to the Ultimate TV package. The Popular TV...

cordcuttersnews.com

Yeah, this is an incremental step toward the end game, which is making RSNs (or whatever we end up calling the subscription vehicle that contains the great majority of local MLB games) a la carte rather than part of the cable bundle (in other words, like HBO/Max).

As for Verizon getting rid of Fios TV, where did you hear that? News to me. I can absolutely see them doing that in a couple years but the latest development there is that they recently launched Fios TV in managed IPTV format (rather than QAM, as the service had always been delivered) paired with their own custom Android TV box.

 

[Don in CT]

The YES Network and MSG Networks Form Gotham Advanced Media and Entertainment (GAME), a New Technology, Sports and Entertainment Streaming Joint Venture

/PRNewswire/ -- The YES Network ("YES") and MSG Networks ("MSGN") today announced that they have formed Gotham Advanced Media and Entertainment ("GAME"), a new...

www.prnewswire.com

The Yankees are getting into the game.

NEW YORK, Jan. 4, 2024 /PRNewswire/ -- The YES Network ("YES") and MSG Networks ("MSGN") today announced that they have formed Gotham Advanced Media and Entertainment ("GAME"), a new 50/50 joint venture to capitalize on technical and operational synergies associated with YES' and MSGN's streaming services. GAME will also offer turn-key digital content distribution services, including platform technology, operational support and comprehensive data analytics to third parties, utilizing the combined technical and operational expertise each company has garnered from the respective successful launch and operation of the YES App and MSG+.

 

[Bruce]

As for Verizon getting rid of Fios TV, where did you hear that? News to me. I can absolutely see them doing that in a couple years but the latest development there is that they recently launched Fios TV in managed IPTV format (rather than QAM, as the service had always been delivered) paired with their own custom Android TV box.

I read that also, but here is what I was referring to-

Verizon lost 78,000 Fios TV customers as Verizon continued to move away from TV and shift customers over to YouTube TV.

Verizon Lost 78,000 TV Customers But Added 384,000 5G Home Internet Customers, Putting Pressure on Comcast & Spectrum | Cord Cutters News

Today, Verizon Wireless announced its 3rd quarter earnings for 2023. With that, they announced total revenue of 33.33 billion, a drop of about 2.6% compared to the 3rd quarter of 2022. Verizon lost 78,000 Fios TV customers as Verizon continued to move away from TV and shift customers over to...

cordcuttersnews.com

 

[jayn_j]

Funny, Spectrum is doing the opposite here. I was able to choose my local RSN as part of the lowest tier, Total Choice pick 15.

 

[savarese04]

Yeah, this is an incremental step toward the end game, which is making RSNs (or whatever we end up calling the subscription vehicle that contains the great majority of local MLB games) a la carte rather than part of the cable bundle (in other words, like HBO/Max).

You're absolutely right and I think the model will die well before that. Once you get to the point of going a la carte, it's just not economical for the end consumer. My RSN fee is $17. That's $204/year. For $120+$99 ($219 total), I can get MLB and NBA streaming services and, not just get my local games, BUT ALL MLB/NBA games.

 

[Yespage]

You're absolutely right and I think the model will die well before that. Once you get to the point of going a la carte, it's just not economical for the end consumer. My RSN fee is $17. That's $204/year. For $120+$99 ($219 total), I can get MLB and NBA streaming services and, not just get my local games, BUT ALL MLB/NBA games.

Keep in mind, HBO used to be $6 in 1984. NESN in the same year was between $7.50 and $10. Sports were a la carte and they weren't cheap. And they worked. Granted, with the media competition today, that'll be harder to cut through, however, if people are stripping the overhead of other programming, it could be possible that $20 or $30 a month for the local RSN is a viable option.

 

[Bruce]

Keep in mind, HBO used to be $6 in 1984. NESN in the same year was between $7.50 and $10. Sports were a la carte and they weren't cheap. And they worked. Granted, with the media competition today, that'll be harder to cut through, however, if people are stripping the overhead of other programming, it could be possible that $20 or $30 a month for the local RSN is a viable option.

The problem with the RSNs have is not enough people watch them, so doubtful they would have enough subscribers to support the service.

For example the La Dodgers averaged 140,000 households watching per game.

The rights fees for them is $196 Million a year, that comes out to $1400 per household they would have to pay to cover the current contract Sportsnet has with LA, then we have rights fees for the NBA/NHL team, so about $2000 a year total, or $166.67 a month.

That is just the rights fees, there are a lot more costs involved in running a channel.

The only model the RSNs were able to survive in is if everyone pays, watching or not, that is how it was 7 years ago, before cord cutting started.

 

[comfortably_numb]

The only model the RSNs were able to survive in is if everyone pays

Those days are over

 

[Bruce]

Those days are over

Yes they are.

 

[Don in CT]

Those days are over

That’s the cable tv model in general.

 

[Bruce]

Waiting for the details-

Amazon Buys Part of Bally Sports & Will Become The New Streaming Provider For Bally Sports Direct-to-Consumer Streaming | Cord Cutters News

Today Bally Sports announced a deal a deal that will allow it to exit bankruptcy. With this deal, Amazon will become a minority owner of Diamond Sports, the owner of Bally Sports. This deal will see Amazon become the new home of Bally Sports streaming for direct-to-consumer packages. “We are...

cordcuttersnews.com

 

[navychop]

Sigh.

Just KILL it!

 

[Bruce]

And Diamond is already playing games with NBA/NHL.

Amid the fog and chaos of the long, arduous, vastly complicated restructuring process, Diamond forged short-term "cooperation agreements" with the NBA and NHL to keep the leagues' signatory teams in the Bally Sports fold only through their respective current pro basketball and hockey seasons, in exchange for reduced local TV rights fees payments.


In its filing to its Houston bankruptcy court Wednesday, however, Diamond stipulates that the cooperation agreement never took effect, and that it will now be superseded, with the teams on the hook for their original Bally Sports agreements.

"The Cooperation Agreement Order shall not have become effective, the terms of the NBA Term Sheet and the NHL Term Sheet conditioned on the effectiveness of the Cooperation Agreement Order shall not have gone into effect," Diamond said.

Bankrupt Sinclair Subsidiary Diamond Finally Announces Restructuring Plan, With $115 Million Assist From Amazon ... But Will MLB, the NBA and the NHL Stick Around?

'We will refrain from offering our congratulations,' an Major League Baseball lawyer told a beat reporter

www.nexttv.com

 

[meStevo]

Amazon jumping in still just feels like them positioning themselves to pick and choose the bits / rights they want access to for a song when this ultimately settles on it's end state in the future.

Kind of like claiming a player's rights when they're cut in the NFL on the waiver wire so you don't have to compete for their services on the open market. Sometimes you pay a little more to not have to compete.

 

[Bruce]

Amazon jumping in still just feels like them positioning themselves to pick and choose the bits / rights they want access to for a song when this ultimately settles on it's end state in the future.

Kind of like claiming a player's rights when they're cut in the NFL on the waiver wire so you don't have to compete for their services on the open market. Sometimes you pay a little more to not have to compete.

I do wonder if Amazon deal is connected to Diamond retaining those rights, the one they were trying to get out of.

Also, the MLB is still saying no to any more rights .

My guess is, Amazon and MLB ( and maybe NBA/NHL teams) are now talking before next week’s court date.

But if the court says no to Diamond trying to get out of the new contract, I would bet Amazon goes bye bye.

 

[meStevo]

Given the circumstances, there have to be a lot of contingencies to any investment in Diamond, hard to see Amazon just cutting them a check and hoping for the best. At any given moment they're a court date from being a completely different business (or not in business at all).

So yeah, more likely than not, there have to be a bunch of gotchas in that deal for it to remain in place.

 

[navychop]

So there’s hope! My wife suspects Amazon will get all Prime members to pay part of the bill. One way or another.

I suspect she’s right.

 

[comfortably_numb]

My wife suspects Amazon will get all Prime members to pay part of the bill

Hmm.. sounds like a giant "bundle" to me! Hope Amazon breaks out the RSN fee from the Prime membership fee.. otherwise this is just like cable

 

[Bruce]

So there’s hope! My wife suspects Amazon will get all Prime members to pay part of the bill. One way or another.

I suspect she’s right.

Not how it is supposed to work, you will not get it automatically if you are a Prime subscriber, you would have to pay the extra $20 a month to get it.

I have no interest in paying for it.