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Olympic Basketball Is Just The Tip Of The Streaming Iceberg

“Most of you that paid for the game through Peacock are going to cancel the subscription once the Olympics are over, right?”

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If you, like me, were searching for a live broadcast of last weekend’s Team USA/France game, it was not easy to find. NBC decided that one of the more popular sports in the Olympics was only good enough for their new streaming platform Peacock. Yeah, you could have streamed it through the NBC Olympic app, but it was early Sunday morning, who wants to mess with that?

US loses to France 83-76, 25-game Olympic win streak ends | NBA.com
Courtesy: Getty Images

I wanted to see it on my television set without having to hunt for the app. Call me old fashioned. Also, you better call me a technology expert, because I have seen the future of sports and it’s streaming, not beaming to your set. 

I know, it’s been trending this way for a while and I’m not Nostradamus, but it really hit me last week. I have so many questions. How much is this going to cost, on top of what I’m already shelling out for cable? What does this mean for teams throughout all the major sports? Revenue? Lastly, what’s going to become of the Regional Sports Network? Some of them are heavily invested in or even owned by the teams themselves. 

We all understand why NBC aired the basketball game on its new digital network. Money rules the day. Plus, they figured, if we can get people to pay the $4.99 upgrade just to watch this game, we can hook them in for the other features too. Or, maybe they thought, well this is the only sport we’re putting on the premium service, let’s see how it goes and perhaps we’ll get some new subscribers this way. So, let’s not kid ourselves into thinking this was some brilliant idea because they weren’t sure how good the Men’s Hoops Team would be, it’s about cash. And also, let’s be totally honest. Most of you that paid for the game through Peacock are going to cancel the subscription once the Olympics are over, right?

You could have watched the game through the Olympics App, simply by opening the app, then verifying your cable service and entering your user name and password for your service. There were a few hoops, no pun intended, to jump through, but this way, you aren’t paying more than you already are for cable. It seems like a lot of things are set up this way, possibly to gain information on how many users are actually streaming through third party apps. 

Even after all of that, NBC decided to re-air the game on the network hours after it was completed. Hello NBC, maybe you didn’t get the memo that this is 2021 and there’s this thing called Twitter and other things called smart phones. Everybody that wanted to know the result already knew the final score. I feel like this is the majority of those watching the Olympics. It’s a waste of air-time. This is a story for perhaps another time. 

I’m not sure why we routinely stream movies and TV shows and don’t think much of it at the time. Shelling out up to ten bucks a month for Netflix doesn’t seem as painful to me for some reason. For most of my life, sports were on free, over the air television. Yeah, it was a bit jarring when my teams moved to cable but we adapted. I just had to point my remote control to a different station, and there was my team in living color. Until recently this was the case for most of us. Especially since most of the RSN’s linked to professional teams are locked into long term contracts, there hasn’t been a reason to move with the times. Those of the younger generations have been the ones to see the shift to streaming, through an RSN’s app or cable app. 

Now some of these agreements are expiring which means, teams and leagues are starting to explore the world of streaming. Some will have more streaming as of next year for mega bucks. Executives have realized that some of their viewers feel alienated. This, after “cutting the cord” with cable, giving them few alternatives to watch their favorite team.

It’s not a good time for RSN’s, who are basically the middleman between the teams and cable companies. There are instances where the network is actually owned by the team, like the Yankees’ YES and the Cubs’ Marquee Sports Network. The only advantage the RSN’s have now is they are where the fans go to see every local game. Changes to that thought process are in the works too which could leave the RSN out in the cold. 

With streaming becoming such a popular way to catch a game or an event, some executives were caught off guard as to how fast this was taking place. It was time to adapt or die. In an effort to gain new “viewers” online platforms with sports are much more critical and important. NBC is abandoning its NBC Sports Network by the end of the year. With the NHL moving on to ESPN and Turner, some of the other properties like NASCAR and EPL will likely head to Peacock. 

Watch Live Sports Online | Peacock

Major League Baseball has had success with MLB.tv, a way for fans that move away from their home area to view their hometown team. Inherent is the problem of blackouts, which in the not-too-distant future could change, creating a whole new ballgame for the league. Teams recently got the right to sell their own local streaming rights. Now they are still under the guidelines of honoring existing RSN streaming contracts. When those expire, they are free to move on. 

The NFL is streaming too. Peacock will get exclusive national rights to stream six regular-season games, one per season, from 2023-2028. This is in addition to its ongoing streams of NBC’s regular weekly NFL broadcasts. Peacock will also launch a virtual NFL channel highlighting classic games and content from NFL Films. Paramount+ will stream CBS games to local customers on both their ad-supported and ad-free tiers. Then there’s Amazon Prime, which starts exclusive rights to Thursday Night Football next season. 

The NHL’s new contract with ESPN and Turner allows for streaming rights too. The agreement between Turner Sports and the National Hockey League includes live streaming and digital rights across WarnerMedia including HBO Max.

Streaming services don’t require the use of an RSN. So, how will the RSN itself compete? Some have started to develop a “direct-to-consumer” model, which includes an app and streaming without a cable provider or the need for Hulu or YouTube TV. This would allow the cord cutter to continue to watch his/her favorite local team that’s currently carried on the RSN without having to subscribe to cable. It’s not clear yet how much this might cost. 

In an article at Sportico.com from earlier this year, Sinclair President and CEO Chris Ripley addressed investors about the plan to go DTC. Ripley said the company is “currently developing a product to reach consumers on a direct basis, in an app, similar to the way consumers access over-the-top platforms.” Sinclair hopes to roll out the app sometime in the first half of 2022. Ripley added, the service is meant to complement the existing linear TV properties rather than replace them outright.

Ok, well that’s one way to keep yourself relevant in this ever-changing marketplace. Again, what will it cost? Nobody seems to know that information yet and it will be a huge determining factor in what consumers decide to do. 

Here’s the biggest hurdle I see for the DTC approach. Will each RSN be able to handle itself and stay competitive in the streaming space? Probably not. It likely depends on which teams that particular network is providing coverage of and maybe how long the season is as well. 

What do I mean? Let’s say for example you’re an Arizona Diamondbacks fan (no offense Dbacks fans, I know it’s been a tough year, but this furthers what I mean). The team has been on the losing end of the score more often than not. Fox Sports Arizona decides to offer you a streaming package so you can watch all 162 games. Are you really going to do that? Wouldn’t you be more inclined this year to say, “nope, I’m sitting this one out”. 

Diamondbacks Blow Another Late-Inning Lead, Bow to Dodgers - Last Word On  Baseball
Courtesy; Getty

Unless they’re going to offer fans a game-by-game package, it’s going to be a hard sell for the season. Obviously, you have no idea at the beginning of the year how the team will perform, but that’s when they’ll want your money. It’s a gamble for both you the viewer and the RSN, because the latter will come out the loser in this situation. 

Nobody has a crystal ball to predict exactly how this will play out or when this scenario will even be a reality. Right now, there are many ways you can still watch your favorite sports whether you have cable, an HD Antenna or you’ve cut the cord. Things will be changing eventually. How many RSN’s will take the plunge into the arena of streaming on their own? That’s the multi-billion-dollar question. 

BSM Writers

Keeping Premier League Games Shouldn’t Be A Hard Call For NBC

“Beyond its massive global fanbase, the Premier League offers NBC/Peacock a unique modern 21st-century sport for the short attention span of fans.”

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NBC Sports is facing some tough, costly decisions that will define its sports brand for the rest of this decade.  A chance to connect with viewers in a changing climate and grow Peacock’s audience as well.  However, making the right choice is paramount to not losing to apps like Paramount+ (pun intended).

NBC is currently in the business of negotiating to continue airing the Premier League as their current deal ends after this 2021-2022 season.  NASCAR is contracted to NBC (and FOX) through the 2024 season.

NBC’s tentpole sports are the NFL and the Olympics.  

Negotiations for the EPL are expected to go down to the wire. Rather than re-up with NBC, the league is meeting with other networks to drive up the price. NBC has to then make a decision if the rights go north of $2 billion.

Should NBC spend that much on a sport that is not played in the United States? It’s not my money, but that sport continues to grow in the US.

If NBC re-ups with the Premier League, will that leave any coins in the cupboard to re-up with NASCAR? Comcast CEO Brian Roberts hinted that there might be some penny pinching as the prices continue to soar. This may have been one of the reasons that NBC did not fight to keep the National Hockey League, whose rights will be with Disney and WarnerMedia through ESPN and TNT, respectively.

“These are really hard calls,” Roberts said. “You don’t always want to prevail, and sometimes you’re right and sometimes you’re wrong, but I think the sustainability of sports is a critical part of what our company does well.”

Roberts was speaking virtually at the recent Goldman Sachs 30th Annual Communacopia Conference. He told the audience that between NBC and European network Sky, that Comcast has allocated approximately $20 billion towards these sports properties.

Comcast CFO Michael Cavanagh spoke virtually at the Bank of America Securities 2021 Media, Communications and Entertainment Conference and echoed that the company is in a good position to make some strong choices in the sports realm. 

“The bar is really high for us to pursue outright acquisitions of any material size,” Cavanagh added. “We got a great hand to play with what we have.”

While the European investments involve a partnership with American rival Viacom, the US market seems to have apparent limits.

Last Saturday’s NASCAR Cup Series at Bristol Motor Speedway was seen by around 2.19 million people. It was the most-watched motorsports event of the weekend. That same week eight different Premier League matches saw over 1 million viewers. More than half of those matches were on subscription-based Peacock. 

Beyond its massive global fanbase, the Premier League offers NBC/Peacock a unique modern 21st-century sport for the short attention span of fans. A game of typical soccer fan is used to a sport that is less than two hours long. The investment in a team is one or two games a week. 

My connection to the Premier League began before the pandemic.  When I cut the cord in late 2017, I purchase Apple TV.  Setting it up, it asks you to name your favorite teams.  After clicking on the Syracuse Orange and the New Jersey Devils, I recalled that my wife has family based in London, England.  They are season ticket holders for Arsenal, and that family redefined the word “die-hard” fans.

I’ve long been a believer that sports allegiances are best when handed down by family. I love hearing stories of people loving the New York Giants because their parents liked them, and they pass it down to their children.

I’ve successfully given my allegiance to the Devils to my young daughters. 

By telling Apple TV that I liked Arsenal, I get alerts from three different apps when the “Gunners” are playing. The $4.99 is totally worth it to see Arsenal.

Whenever I told this story, I was amazed to see how many other American sports fans had a Premier League team. Students of mine at Seton Hall University rooted for Tottenham Hotspurs, while an old colleague cheers on Chelsea.

Global Is Cool': The Growing Appeal of Premier League Soccer in America
Courtesy: Morning Consult

This is not meant to say that NBC should sign the EPL on my account. The key for any US-based soccer fan is that between Bundesliga, Serie A, and other leagues, there will be no shortage of soccer available on both linear television and streaming services.

Besides, Dani Rojas did say that “Football is life.”  NBC, originator of the Ted Lasso character, should make keeping its Premier League US connection a priority.

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BSM Writers

Media Noise – Episode 45

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Today, Demetri is joined by Tyler McComas and Russ Heltman. Tyler pops on to talk about the big start to the college football season on TV. Russ talks about Barstool’s upfront presentation and how the business community may not see any problems in working with the brand. Plus, Demetri is optimistic about FOX Sports Radio’s new morning show.

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BSM Writers

6 Ad Categories Hotter Than Gambling For Sports Radio

“Using sports radio as a back page service for gambling will have a limited shelf life.”

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For years sports radio stations pushed sports gambling advertisers to early Saturday and Sunday morning. The 1-800 ads, shouting, and false claims were seedy, and some stations wouldn’t even accept the business at 5 am on Sunday.

Now, with all but ten states ready to go all in on sports gambling, sports radio stations can’t get enough of that green. Demetri Ravanos wrote about the money cannon that sports gambling has become for stations. Well, what if you are in one of those ten states where it isn’t likely to ever be legal like California or Texas? Where is your pot of gold?

A Pot of Gold Articles - Analyzing Metals
Courtesy: iStockphoto

Or, let’s face it, the more gambling ads you run, the more risk you take on that the ads will not all work as you cannibalize the audience and chase other listeners away who ARE NOT online gambling service users and never will be. So, what about you? Where is your pot of gold?

Well, let’s go Digging for Gold. 

The RAB produces the MRI-Simmons Gold Digger PROSPECTING REPORT for several radio formats. In it, they index sports radio listeners’ habits against an average of 18+ Adult. The Gold Digger report looks at areas where the index is higher than the norm – meaning the sports radio audience is more likely to use the product or service than an average 18+ Adult who doesn’t listen to sports radio. The report, generated in 2020, indicates that sports radio listeners are 106% more likely to have used an online gambling site in the last thirty days. That’s impressive because the report only lists 32 activities or purchases a sports radio listener indexes higher than an average adult. I looked at those 32 higher indexes, and I think we can start looking for some gold.

Using sports radio as a back page service for gambling will have a limited shelf life. The gambling companies who commit significant money to get results will continue advertising and chase the others away. So, the future of sports radio needs to include other cash cows.

If it is evident to online sports gambling services that sports radio stations are a must-buy, who else should feel that way?  I looked at the Top 32 and eliminated the media companies. ESPN, MLB/NHL/NFL networks, and others aren’t spending cash on sports radio stations they don’t own in general. But Joseph A Bank clothing, Fidelity, and Hotwire should! Here’s your PICK-6 list I pulled together that’s hotter than sports gambling:

  • Sportscard collectors, Dapper Labs, Open Sea- read about Sports NFT $.
  • Online brokerage firms-Fidelity, Charles Schwab, Robinhood, Webull, TD Ameritrade
  • Golf courses, resorts, equipment, etc.- we play golf at home and vacation
  • Hotwire.com, Booking.com, TripAdvisor, Airbnb, Carnival Corporation, and Priceline.com- we’ve used Hotwire in the last year.
  • FedEx, UPS, U.S. Postal Service, Venmo, PayPal, Zelle-we wired or overnighted $ 
  • Jos. A. Bank, shein.com, macys.com, nordstroms.com- we went to Jos. A. Bank in last three months

The sports card/NFT market is 32% hotter than the sports betting market for sports radio listeners. Everything on the PICK-6 is at least 100% more likely to purchase than an average 18+ Adult who doesn’t listen to sports radio. All listed are at or above indexing strength compared to sports betting. The individual companies I added are industry leaders. Bet on it! Email me for details. 

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