Jeff Bennett's Blog

Sports Business Journal is reporting that the NBA is about to give regional sports networks (RSNs) like MSG Network, Yes Network and Fox Sports affiliates the rights to control their local digital content. The NBA will be the only professional sports league to allow the RSNs to develop, manage and roll out digital content as they see fit. The new deal will cover VOD, some broadband services and the local in-market streaming rights to live games.

It would appear that the NBA is the big winner with this move, as it can reap the benefits of digital adoption without having to invest in additional tech, sales or marketing infrastructure.

This is also going to be good for the RSNs like Comcast SportsNet that are owned by cable operators as they will be able to market the content as a value-add versus rivals like DirecTV and Verizon. The RSNs will be able reap new revenues from subscribers to stream games live but they will still have to pay their cable or satellite partner a cut of that revenue.

To me it seems this is bad for many of the teams who are not owned or tightly affiliated with RSNs. The NBA has operated NBA.com and the team sites as the digital door for all things basketball for many years. Teams cut their own regional media deals for cable and radio. It would seem they might lose some leverage and opportunity with RSN’s who know have been bestowed additional rights by the NBA.

We will keep an eye on this development. First of its kind by a league.