From Front Office Sports <[email protected]>
Subject FOS PM: Piracy Fills ESPN Cable Void
Date September 6, 2023 8:45 PM
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September 6, 2023

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After nearly 30 years in and around sports media, I can’t recall a period as turbulent as the current one, a large-scale disruption that informs each of today’s major stories. From the Charter-Disney dispute driving consumers to extreme alternatives and the impending shutdown of Denver’s RSN, to Warner Bros. Discovery luring additional subscribers to Max with sports, every major programmer and distributor is navigating unprecedented levels of cord-cutting and the decline of the traditional cable bundle.

There are, of course, no easy answers. But the individual responses are only getting larger and more dramatic, reflecting the scale of the issue at hand.

— Eric Fisher [[link removed]]

Disney-Charter Dispute Creating Chaos, Even Piracy [[link removed]]

Danielle Parhizkaran-USA TODAY Sports

The Charter Spectrum-Disney distribution battle [[link removed]] is just days old, but some consumers — and even top-ranked tennis pros — are resorting to piracy to keep up on sports.

Daniil Medvedev, the world’s third-ranked men’s player, acknowledged he’s turned to perhaps illegal websites to keep up with the tennis major in which he’s taking part.

“I guess in a lot of hotels, they have Spectrum, so I cannot watch it on TV anymore,” said Medvedev, who is facing No. 8 Andrey Rublev in the quarterfinals on Wednesday afternoon. “I don’t know if it’s legal or illegal, but I have to find a way because I cannot watch it on TV — so I got [the] internet, and probably pirate websites or something, [and] I watched tennis there. I have no other choice.”

There has been no significant progress in talks between Charter and ESPN parent Disney since 19 Disney channels — including ESPN, ESPN2, and ESPNU — went dark on the country’s second-largest cable carrier on Aug. 31.

ESPN has since started a heavy promotional offensive to encourage consumers to seek alternate providers, while Charter is pursuing a redefinition of what has been the traditional cable bundle. The network has also quietly started [[link removed]] giving secure online logins to tournament action to U.S. Open players, including Medvedev, and some media.

“The consumer wants simplicity, aggregation, and the most bang for their buck. This dispute is putting tension around some of those issues,” said Brian Roberts, CEO of Comcast, the country’s largest cable carrier. “I hope they work it out … Each company is dealing with their version of this transformational moment.”

Charter, meanwhile, has also been hit [[link removed]] with a class-action lawsuit in Florida from subscribers as the dispute continues.

Despite the ongoing blackout of ESPN networks for 14.7 million subscribers, the network’s Sept. 3 coverage of Florida State-LSU drew an average of 9.1 million viewers, its best Labor Day Sunday college football game since 2016.

Another RSN Falls Victim To Volatile Media Landscape [[link removed]]

Ron Chenoy-USA TODAY Sports

The crumbling edifice of regional sports network business is about to lose another pillar.

The Denver-based AT&T SportsNet Rocky Mountain, which airs MLB’s Colorado Rockies, is reportedly [[link removed]] set to shut down. Full-time employees are due to stop work on Oct. 6, and the network will fully shutter around the end of the year.

The decision isn’t exactly surprising. Network owner Warner Bros. Discovery Sports has long sought to exit the RSN business, has already sold what will become SportsNet Pittsburgh, and is potentially close to a similar deal in Houston for AT&T SportsNet Southwest.

But the development leaves significant questions, both locally and for the industry at large.

The Rockies must decide what to do for 2024 and beyond, and their leading choices are to align with MLB to produce and distribute games — similar to what the league is now doing in Arizona [[link removed]] and San Diego — or sign with the Stan Kroenke-owned Altitude, which already airs the NBA’s Nuggets, NHL’s Avalanche, and NLL’s Mammoth.

The latter option, however, will bring a distribution issue: Altitude has been dark [[link removed]] on Denver-area Comcast systems since 2019 amid a bitter carriage dispute.

In a wider sense, the AT&T SportsNet Rocky Mountain situation adds to the ongoing bankruptcy drama [[link removed]] surrounding Bally Sports and parent company Diamond Sports Group.

Pittsburgh Deal Done

WBD Sports did find some closure in Pittsburgh with its expected [[link removed]] sale of that regional network to Fenway Sports Group, parent of the NHL’s Penguins, MLB’s Boston Red Sox, and Premier League’s Liverpool, among other assets. FSG’s NESN will manage the daily operations of SportsNet Pittsburgh, with the acquisition and rebranding effective Oct. 2.

“Our top priority is to continue to deliver Penguins hockey, creative content tailored to our fans, and other exciting sports coverage of the region,” said Kevin Acklin, the Penguins’ president of business operations.

MLB’s Pittsburgh Pirates will also face a decision not unlike the Rockies’ about whether to stick with SportsNet Pittsburgh or go with the league-operated model.

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Max Will Use Free Sports To Lure New Streaming Subscribers [[link removed]]

Brett Davis-USA TODAY Sports

Live sports will be a crucial part of Max’s evolution as a streaming service.

Warner Bros. Discovery will offer game broadcasts for no additional charge when it launches the Max sports tier [[link removed]] this fall, coinciding with the MLB playoffs, according to Bloomberg [[link removed]].

WBD has traditionally put its package of games on cable channels like TBS and TNT.

Max currently costs $10 per month with ads and $16 without ads, and the new report claims customers will have to start paying extra for the sports content during the big spring events of March Madness, the NBA and NHL playoffs.

Last month, WBD CEO David Zaslav said the company had digital rights for all its sports deals — but a source told [[link removed]] FOS at the time that it was still discussing game simulcasts on Max with WBD.

As of now, there are no indications that any sports content will be exclusively available on Max. It is also unclear how much the sports tier will cost, or whether it could simply be a part of the higher-priced, ad-free Max subscription.

Conversation Starters Vanessa Bryant has handpicked six college basketball teams to be honored as “Mamba Programs” for the 2023-24 season. The teams will wear Kobe’s and Gigi’s Nike shoes and may have the Nike Kobe “Sheath” logo on their jerseys in the future. Check out the list [[link removed]]. Real Madrid released a first look at their new retractable pitch [[link removed]] — which will equip Santiago Bernabéu Stadium to host concerts, tennis, esports, and NFL games. The Pittsburgh Penguins unveiled $30 million in upgrades to PPG Paints Arena, including a massive jumbotron and VIP suites. Take a look. [[link removed]]

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