from Geoff Baker of the Seattle Times,
Fast forward three decades, and it’s all imploding, with TV viewers deserting cable in favor of streaming and leaving teams and RSN operators scrambling to find a future. One option increasingly eyed by teams — especially NHL squads such as the Kraken in search of broader audiences — is what’s been likened to a “Back to the Future” approach of showing games on free channels as in the 1980s and prior.
The difference now being, instead of one or two weekly games, it would be the majority freely accessed. Sounds great, right? Well, there are obstacles. But right now, the current RSN model is unsustainable and as sports fans you should be very concerned.
Here in Seattle, we’re seeing the not-so-pretty ramifications of RSN model demise on two team fronts with ROOT Sports Northwest.
With the Kraken, who are paid an annual TV rights fee by ROOT Sports said to be within the standard $15 million-$30 million for NHL teams, they haven’t grown their product as well as they’d like. We’ve mentioned previously that Kraken ticket demand has lagged on online resale exchanges, reflecting a lack of demand that goes beyond a poorly performing team.
A great way for any new team to increase interest is through television. But with fewer people willing to pay for packages that include ROOT Sports, the “eyeballs” on Kraken games haven’t been there.
Holy shit. Someone that makes sense. The current state of watching the NHL on TV is a disaster. I don't see how it's better for nobody to watch it on TV than give it away for nearly free.
One solution, and one that the owners would probably fight to the death, is to lower the fee paid by RSN's. Charge them $5M-$10M instead of $15M-$30M, especially in markets that are smaller or are just developing. Grow the market and the teams should reap the benefits through ticket and merchndise sales.
But owners want their money guaranteed up front. And, apparrently, they're willing to watch the RSN's fail because they think everyone will instantly switch to streaming where they think they'll make even more money.
Ideally it would be free. We all like free, no? But I just don't see that as a reality. What I'm more concerned with is how fragmented the market has become. In the U.S. you have 2 national providers (ESPN & TNT). ESPN still doesn't offer a streaming only option for all its games. Some are available via ESPN+/Hulu but not all games, especially the playoffs. TNT has just recently put its games on MAX and hopefully commits to putting playoff games there as well. Then there are the multiple RSNs. Some have streaming only options but are priced so high because they assume you want everything available on their network (not just hockey).
I shouldn't have to subscribe to multiple providers, most part of larger bundles, just to watch every Red Wings game from outside the Detroit area. I want a TOTAL NHL package and I want it now!
Who would have thought taking out $10b in debt to acquire a product that loses $500m a year would be a bad investment? Get rid of the archaic blackout bullshit and let ESPN or someone that doesn't have their head stuck up their ass handle it.
I live in Washington and Root TV was a hideous idea from the beginning. They lost their entire first season of fans! In my mind the league should have "ADVISED" them more forcefully.....
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