Home NBA The Future of NBA’s Local Sports Rights: Consolidation, Opportunities, and Pricing

The Future of NBA’s Local Sports Rights: Consolidation, Opportunities, and Pricing

by americanosportscom

Title: Sunday’s Dolphins-Chiefs Game Scores Impressive Ratings in Kansas City Market

Date: [Insert Date]

In a surprising turn of events, Sunday’s Dolphins-Chiefs game from Germany garnered an astonishing 94% share in the Kansas City (K.C.) market. This means that 94% of all televisions in use were tuned in to the game, highlighting the immense popularity of the matchup among local viewers.

The early morning game, which started at 8:30am CT, captivated the K.C. audience, showcasing the strong fan base and dedication to their beloved Chiefs. The high viewership numbers demonstrate the unwavering support for the team, even during unconventional game times.

The significant ratings success of the Dolphins-Chiefs game could have far-reaching implications for the future of local sports rights in the area. Many league and team sources believe that the NBA’s recent deal with Diamond Sports could be a crucial step in the eventual unwinding of the bankrupt company.

As part of the deal, the NBA will regain the rights to 15 teams that currently have local deals with Bally Sports networks after this season. This timing aligns with the league’s ongoing negotiations for a national rights deal. The NBA aims to consolidate its rights and maximize their value, with these local rights potentially becoming a lucrative asset in securing a larger national deal.

While some sources caution against the deal, suggesting that Diamond Sports may double down on its most profitable Regional Sports Networks (RSNs), others believe that the RSNs will still be available for negotiation with teams that go to market with their local rights. Local broadcast stations are expected to express interest, although most markets only have one RSN, making the cable bundle an attractive option for teams.

According to sources, the deal terms include a 16% reduction in the NBA teams’ rights fees for this year, allowing for contract end-dates to align in April. Although Diamond has faced delays in making payments, teams like the Orlando Magic expect to be paid now that an overall deal has been struck with the league. However, the approval of the deal by the bankruptcy judge is necessary for any further action to take place.

An intriguing aspect of Diamond’s NBA deal is the provision that allows the 15 affected NBA teams to shop up to 10 games to an over-the-air broadcaster in each market this season. This move is expected to offset the 16% rights fee cuts and establish relationships with local broadcasters who have shown interest in bidding for local sports rights.

Bill Koenig, the NBA’s top media executive, highlighted the league’s intention to pursue a “hybrid” approach to local sports rights. This approach involves teams selling local linear TV rights while the league aggregates the digital rights into a package that can be sold to streaming companies. Digital giants like Amazon and Apple, as well as traditional media companies like ESPN and Warner Bros. Discovery, have already expressed interest in such a package.

The NBA remains committed to local TV and has engaged in direct talks with distributors, should the league decide to bypass RSNs. Additionally, the NBA has invested in its Next Gen Platform, which has facilitated direct-to-consumer services for teams like the Los Angeles Clippers, Phoenix Suns, Utah Jazz, and Los Angeles Lakers.

In the realm of local sports direct-to-consumer (DTC) services, pricing strategies have varied. Most teams have priced their DTC offerings at $20 per month or higher, aiming to demonstrate the value of the cable bundle while coexisting with cable and satellite operators.

As the landscape of local sports rights continues to evolve, the NBA’s deal with Diamond Sports and the success of the Dolphins-Chiefs game in the K.C. market serve as significant milestones in shaping the future of sports broadcasting.

[Insert Author Name]Title: Sunday’s Dolphins-Chiefs Game Scores Impressive Ratings in Kansas City Market

Date: [Insert Date]

In a surprising turn of events, Sunday’s Dolphins-Chiefs game from Germany garnered an astonishing 94% share in the Kansas City (K.C.) market. This means that 94% of all televisions in use were tuned in to the game, highlighting the immense popularity of the matchup.

The early morning game, which started at 8:30am CT, captivated the K.C. audience, showcasing the unwavering support for the Chiefs in their home market. The high viewership numbers demonstrate the strong fan base and the city’s passion for football.

The significant ratings success of the Dolphins-Chiefs game has raised questions about the future of Diamond Sports, the company currently holding the NBA’s local rights. Many league and team sources believe that the NBA’s deal with Diamond Sports could potentially lead to the company’s eventual unwinding, given its bankruptcy status.

The NBA’s agreement with Diamond Sports will allow the league to regain the rights to 15 teams that have local deals with Bally Sports networks after this season. This move aligns with the NBA’s goal of consolidating its rights and potentially securing a more lucrative national rights deal.

However, some sources urge caution, suggesting that Diamond Sports may use this opportunity to focus on its most profitable Regional Sports Networks (RSNs) at the end of the season. Despite the uncertainty surrounding Diamond’s future, the NBA expects teams to be paid now that an overall deal has been struck with the league.

Magic CEO Alex Martins expressed concerns about the situation, stating that the team’s RSN situation is currently in “limbo.” Martins mentioned that the team is exploring alternative options to broadcast their games if necessary.

The NBA’s top media executive, Bill Koenig, discussed the league’s approach to local sports rights during the recent SBJ Media Innovators conference in New York. Koenig revealed that the NBA is considering a “hybrid” approach, where teams sell local linear TV rights while the league aggregates the digital rights into a package for streaming companies.

Koenig emphasized the NBA’s commitment to local TV and mentioned direct talks with distributors as a potential bypass for RSNs. The league is also investing in its Next Gen Platform, which has facilitated direct-to-consumer services for teams like the Suns, Jazz, and Lakers.

In the realm of local sports direct-to-consumer (DTC) services, pricing has become a crucial factor. Spectrum Networks SVP and GM, Dan Finnerty, explained that the $19.99 per month fee for the Lakers’ DTC service was determined to showcase the value of the cable bundle and not encourage cable subscribers to abandon their packages.

Most teams’ DTC offerings have followed a similar pricing strategy, with prices set at $20 per month or higher. This approach aims to strike a balance between providing value to consumers and maintaining a harmonious relationship with cable and satellite operators.

As the landscape of sports broadcasting continues to evolve, the NBA’s deal with Diamond Sports and the growing popularity of DTC services highlight the industry’s ongoing transformation. The future of local sports rights and the role of traditional media companies versus digital platforms remain key points of interest for stakeholders in the sports media landscape.

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