AT&T Getting out of the Sports Broadcasting Biz

[Josey Wales]

Warner Bros. Discovery tells teams it is leaving RSN business

www.sportsbusinessjournal.com

Click to read more...

 

[The Great Mighty Poo]

When it shit rains it shit pours.

 

[Josey Wales]

When it shit rains it shit pours.

Some entity will buy them

 

[BlindWillyMcHurt]

When it shit rains it shit pours.

 

[MetalheadPenguinsFan]

Simplistically what does this mean out of curiousity?

 

[Josey Wales]

Simplistically what does this mean out of curiousity?

AT&T have Pens & Pirates on their AT& T sports Network & I guess some entity would have to buy the rights?

 

[The Great Mighty Poo]

Simplistically what does this mean out of curiousity?

Need a new television provider for the Pens and Buccos.

 

[Headshot77]

RSNs are collapsing as a business model. Cable TV subscriptions are down something crazy like 30% compared to the turn of the century and all these RSNs can't pay their rights fees with ad revenue anymore. This is gonna f*** over every franchise that doesn't own their own RSN.

At worst, the Pens don't get their RSN revenue anymore and suddenly ~20% of their income vanishes. The team now operates in the red. This happens to roughly 15 teams across north America (with Bally sports included here). If suddenly 15 teams lose 20% of their revenue the cap is f***ed. The bubble of franchise values will pop just like that if suddenly owning a sports team is not a guaranteed profit generator.

What will need to happen is for FSG to either buy into NESN, or create their own regional network to create content and distribute it themselves. It's gonna suck. RSNs will continue but the future of them will be essentially subsidiaries of the teams that own them. It's not nearly as lucrative or easy as selling rights but you do get the ad revenue directly.

 

[Headshot77]

Lemieux sold at just the right time man. I'm so happy for him. This franchise is going through some serious on-ice turmoil and throwing in a 5 week notice that your games will no longer be aired on TV does NOT help things at all.

 

[DesertedPenguin]

Ownership will likely have to step in and purchase a share of the channel. MSG, NESN, YES, MASN are all at least partially owned by team owners.

Probably the only viable way forward unless the leagues step in.

 

[BusinessGoose]

Bally Sports dying too

 

[Night Shift]

Is this farewell to Mears and Errey?

Bally Sports dying too

Dying alive.

 

[3ladesof5teel]

This is great news. Was sick of switching Satellite providers to just have them tell me they are no longer carrying AT&T sports Pittsburgh.

Now maybe a solid provider will pick them up so I don't have to stream all the time.

 

[Night Shift]

RSNs are collapsing as a business model. Cable TV subscriptions are down something crazy like 30% compared to the turn of the century and all these RSNs can't pay their rights fees with ad revenue anymore. This is gonna f*** over every franchise that doesn't own their own RSN.

At worst, the Pens don't get their RSN revenue anymore and suddenly ~20% of their income vanishes. The team now operates in the red. This happens to roughly 15 teams across north America (with Bally sports included here). If suddenly 15 teams lose 20% of their revenue the cap is f***ed. The bubble of franchise values will pop just like that if suddenly owning a sports team is not a guaranteed profit generator.

What will need to happen is for FSG to either buy into NESN, or create their own regional network to create content and distribute it themselves. It's gonna suck. RSNs will continue but the future of them will be essentially subsidiaries of the teams that own them. It's not nearly as lucrative or easy as selling rights but you do get the ad revenue directly.

So what you mean is its bad for small market teams like Pittsburgh to have their own network compaired to NYR or Bos ECT...?

 

[DesertedPenguin]

This is great news. Was sick of switching Satellite providers to just have them tell me they are no longer carrying AT&T sports Pittsburgh.

Now maybe a solid provider will pick them up so I don't have to stream all the time.

Hate to be the bearer of bad news, but this likely won't end carriage disputes. And streaming is probably more likely than less likely.

 

[The Old Master]

This is great news. Was sick of switching Satellite providers to just have them tell me they are no longer carrying AT&T sports Pittsburgh.

Now maybe a solid provider will pick them up so I don't have to stream all the time.

the pen's have good numbers so someone should pick them up.

 

[Gurglesons]

RSNs are collapsing as a business model. Cable TV subscriptions are down something crazy like 30% compared to the turn of the century and all these RSNs can't pay their rights fees with ad revenue anymore. This is gonna f*** over every franchise that doesn't own their own RSN.

At worst, the Pens don't get their RSN revenue anymore and suddenly ~20% of their income vanishes. The team now operates in the red. This happens to roughly 15 teams across north America (with Bally sports included here). If suddenly 15 teams lose 20% of their revenue the cap is f***ed. The bubble of franchise values will pop just like that if suddenly owning a sports team is not a guaranteed profit generator.

What will need to happen is for FSG to either buy into NESN, or create their own regional network to create content and distribute it themselves. It's gonna suck. RSNs will continue but the future of them will be essentially subsidiaries of the teams that own them. It's not nearly as lucrative or easy as selling rights but you do get the ad revenue directly.

FSG has been wanting to do this.

 

[3ladesof5teel]

Hate to be the bearer of bad news, but this likely won't end carriage disputes. And streaming is probably more likely than less likely.

I get really solid streams just an inconvenience sometimes when I gotta switch from upstairs/gameroom etc, just slower it get to game.

Nice things is a lot of the good streams are set up to watch home/away.

 

[SEALBound]

It should surprise literally no one that sports broadcasting companies are going bankrupt. The whole thing is one big shit show and instead of people caving, they are giving them the middle finger. Good f***ing riddance.

 

[Big Friggin Dummy]

Penguins hockey, on NESN

 

[Pens x]

Lemieux sold at just the right time man. I'm so happy for him. This franchise is going through some serious on-ice turmoil and throwing in a 5 week notice that your games will no longer be aired on TV does NOT help things at all.

He hired Ron Hextall and Brian Burke. Don’t forget that.

 

[Night Shift]

It should surprise literally no one that sports broadcasting companies are going bankrupt. The whole thing is one big shit show and instead of people caving, they are giving them the middle finger. Good f***ing riddance.

This is a good point. Cable and dish are becoming a thing of the past with their unaffordable prices (especially for sports) on top of internet. Thats why streaming has been the future.

I have to think literally no one but sports fans have cable or a dish anymore. Even as the years have gone by since streaming came out, sports fans are getting smarter and cutting the cord to save a $.

So im thinking (hoping) this is a good thing and hopefully blackouts will also be a thing of the past.

 

[3ladesof5teel]

This is a good point. Cable and dish are becoming a thing of the past with their unaffordable prices (especially for sports) on top of internet. Thats why streaming has been the future.

I have to think literally no one but sports fans have cable or a dish anymore. Even as the years have gone by since streaming came out, sports fans are getting smarter and cutting the cord to save a $.

So im thinking (hoping) this is a good thing and hopefully blackouts will also be a thing of the past.

Streaming service this past year have all raised their prices outside of youtubeTV which I anticipate coming shortly.

It's obviously much cheaper than cable/ Satellite now and will be for the foreseeable future but the greed will eventually step in.

Hopefully with more and more competition it regulates pricing and keeps it reasonable.

 

[canadianguy77]

This is a good point. Cable and dish are becoming a thing of the past with their unaffordable prices (especially for sports) on top of internet. Thats why streaming has been the future.

I have to think literally no one but sports fans have cable or a dish anymore. Even as the years have gone by since streaming came out, sports fans are getting smarter and cutting the cord to save a $.

So im thinking (hoping) this is a good thing and hopefully blackouts will also be a thing of the past.

People in rural North America (there are tens of millions) often have no other choice than to have a dish. I actually don’t mind it. I pay about 200 bucks a month but I can afford it and I get basically every channel there is and all of the associated apps. Over the years, Directv has been the most reliable way for me to watch Penguins games.

 

[Night Shift]

Streaming service this past year have all raised their prices outside of youtubeTV which I anticipate coming shortly.

It's obviously much cheaper than cable/ Satellite now and will be for the foreseeable future but the greed will eventually step in.

Hopefully with more and more competition it regulates pricing and keeps it reasonable.

Cable companies will in the future will have to eventually just call themselves the internet streaming service and they probably will control steaming all together and yes it'll cost more in the future than it does now.

but now it almost feels like cable and internet are 2 services, both expensive when combined- im hoping that it'll be more reasonable paying for 1 service than the current situation.