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As we approach 2024, sports stakeholders are turning their attention to the next storylines and hot-button topics that will continue to shift the ever-changing industry. Read on for some predictions for what is sure to be another eventful year in sports business.
What happens to the local RSN model
The collapse of the local TV sports networks took a significant turn in 2023 as Diamond Sports Group, which owns several regional sports networks under the Bally Sports brand, filed for bankruptcy. It led to MLB’s takeover of broadcasts for the Arizona Diamondbacks and San Diego Padres, while the NBA and Diamond Sports recently reached a deal for Bally Sports to keep broadcasts for 15 teams this season. The NHL is reportedly in talks with Diamond Sports over an arrangement similar to the NBA’s.
Expect more franchises to take a route similar to the Utah Jazz: Their games, previously available via the now-defunct AT&T SportsNet network, are now shown via free over-the-air TV or Jazz+, the team’s new paid streaming service.
Ultimately, how local sports rights are distributed in 2024 and beyond will be one of the biggest questions facing the industry. A team’s hybrid approach of offering free and paid subscription options feels like a natural solution as consumers grow more comfortable with selecting their entertainment sources à la carte. The days of channel surfing to find the game on a local sports network will soon be a thing of the past.
Questions do remain: How does the local TV sports crisis impact teams’ revenues? What’s the magic pricing formula for a direct-to-consumer service? And what kind of content, beyond the games themselves, do subscribers expect from a team-owned entity? (Jazz+ costs $15.50 per month or $125.50 for a year.)
Given the abundance of sports and entertainment options available, especially across streaming services, teams should expect some financial pains, at least in the short term. Organizations — like the Jazz, who reportedly received about $20 million per season from their prior AT&T deal — will have to find other avenues to make up for the money lost from the RSN deals.
Relationship between influencers and sports will only grow
These days, social media influencers can drive marketing campaigns like Hollywood celebrities have done for decades. From Kim Kardashian’s Skims partnership deal with the NBA to YouTuber MrBeast's “signing” with the Tampa Bay Buccaneers for a day, these rising stars can help strengthen the relationship between the sports industry and Gen Z.
Morning Consult data suggests that brands should devote even more resources to meeting sports fans where they already are on social media — namely Facebook, YouTube, Instagram and TikTok, the apps where influencers shine most naturally.
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