Sports TV News
Former YES CEO: Cost Of Sports Is Why People Cut The Cord
“More than 25 million people have left cable and satellite since 2012. By the end of 2025, it is expected that another 15 million will follow.”
People across America are learning to live without a traditional cable package. That is bad news for regional sports networks. The former CEO of one of the most valuable RSNs says those channels, and sports as a whole, are a big part of cord cutters’ motivation.
“The cost of sports is the main reason people are cutting the cord on cable. We’re learning to live without sports,” Leo Hindery, former CEO of the YES Network, recently told CNBC’s Alex Sherman.
Outside of ESPN, regional sports networks, tend to have the highest carriage fees on cable. That is to offset the costs accumulated by nabbing exclusive TV rights to major league teams. Sherman cites the research firm Kagan in pointing out that many RSNs charge cable and satellite operators more than $5 per subscriber. That, of course, forces the provider to raise customers’ rates and drives some customers away from traditional TV entirely.
More than 25 million people have left cable and satellite since 2012. By the end of 2025, it is expected that another 15 million will follow.
Sinclair’s Bally Sports RSNs were left out of the company’s most recent deal with DISH Network. That is a problem for Sinclair, but not for DISH. The company’s founder and chair Charlie Ergen recently told analysts that he doesn’t see a reason to change that position.
“We don’t have any customers calling us on RSNs today. We’re happy to talk about anything that’s creative and doesn’t harm our customers, but we’re not interested in taxing our customers when they don’t watch the channel. That doesn’t make any sense.”
Right now, industry analysts say there is no way for Sinclair to launch a reasonably priced streaming service featuring its regional sports network content. No one is cutting the cord on cable to pay what some have estimated could cost nearly $10 per month more than Netflix or HBOMax just for games. That is around what Sinclair would have to charge to make a service financially viable.
Sports TV News
ESPN Employees Brace For Major Layoffs
“According to Front Office Sports, 700 jobs have been cut, including those of anchors, reporters and analysts, since 2015.”
As the restructuring at Disney continues under CEO Bob Iger, tough decisions regarding people’s careers with the company are being made.
The jobs of 7,000 Disney employees will be eliminated as the company tries to save $5.5 billion in costs.
Stephen A. Smith, on a recent episode of his podcast K[no]w Mercy, said ESPN is not going to escape unscathed.
“ESPN is under the Disney umbrella,” Smith said. “They’re going to have cuts coming.”
ESPN has gone through multiple rounds of layoffs in recent years. According to Front Office Sports, 700 jobs have been cut, including those of anchors, reporters and analysts, since 2015.
Stephen A., who has an annual salary of $13 million, said no one’s job is safe.
“Hell, for all I know, I might be one of them,” Smith said. “Now, I doubt that. But it’s possible. No one knows.”
Jordan Bondurant is a features reporter for Barrett Sports Media. He’s a multimedia journalist and communicator who works at the Virginia State Corporation Commission in Richmond. Jordan also contributes occasional coverage of the Washington Capitals for the blog NoVa Caps. His prior media experiences include working for the Richmond Times-Dispatch, the Danville Register & Bee, Virginia Lawyers Weekly, WRIC-TV 8News and Audacy Richmond. He can be reached by email at email@example.com or follow him on Twitter @J__Bondurant.
Sports TV News
Steve Rosenberg Out As President of Diamond Sports Group
“John Ourand of Sports Business Journal reports that a memo went out to the company on Monday morning announcing the change.”
A company declaring bankruptcy is never good for the people at the top. Steve Rosenberg is experiencing that right now. He is out as the president of Diamond Sports Group.
John Ourand of Sports Business Journal reports that a memo went out to the company on Monday morning announcing the change. In it, Diamond CEO David Preschlack wrote that CFO David DeVoe will assume Rosenberg’s responsibilities for now.
Steve Rosenberg joined Sinclair in 2020. He replaced Jeff Krolik as the company’s president of local sports.
Last week, Diamond Sports Group filed for Chapter 11 bankruptcy. The company intends to work out new deals with the NBA and NHL for its Bally Sports RSNs in hopes that it will remain in tact. Ourand writes that an attempt to do the same with Major League Baseball has not yielded meaningful results as of yet.
“With the recent appointments we have made to the senior leadership team, and the talented staff we have throughout the organization, I am confident in this team’s ability to work together to execute our strategic goals at this time,” Preschlack wrote in his memo.
Sports TV News
Variety Predicts Sports Betting Broadcasts Future of RSNs
“With the state of the RSN business a little hazy for some networks, closer integration with gambling is something that VIP+ expects to be leant into more in an effort to engage the most passionate local fans.”
The sports betting market grew in 2022. With five new states legalizing mobile wagering last year, that is not a surprise. The overall take for sportsbooks was $93.4 billion. That is a whopping 84% growth over 2021.
With so much money coming from new markets, Variety wanted to get an idea of how much the sports betting industry is actually growing versus how much of the growth is artificial.
The study from the publication’s VIP+ shows that in markets with a full year of mobile wagering on the books before 2022, the growth is slower but still significant at 19%. Writer Gavin Bridge suggests that the statistic could hold the answer for the future of regional sports networks.
“While winning money was the most popular reason for sports betting, data provided by VIP+’s research partner CRG Global in our ‘Sports Gambling & Media‘ report show that one of the most popular reasons was that betting ‘makes the games I watch more exciting,’ with several other reasons relating to watching televised games also important to some betters,” he writes.
With regional sports networks looking for a new model in the face of serious economic uncertainty, Bridge points to Comcast’s regional NBC Sports networks as a reasonable path forward.
Through its partnership with PointsBet, NBC offers alternate broadcasts of the local teams it covers that have a gambling focus. The alternate feed have not been available for every game on the RSNs, but Bridge writes that we could see more of that in the future.
“With the state of the RSN business a little hazy for some networks, closer integration with gambling is something that VIP+ expects to be leant into more in an effort to engage the most passionate local fans. Ultimately, sports betting overlays and alternative game feeds can be anticipated for most major sports in the coming years as media partners look for new revenue streams and ways to engage fans for longer.”