MLB Takes Control of Local Broadcasts: A Sign of Things to Come for Regional Sports?
The Tampa Bay Rays, along with five other MLB teams, are pioneering a significant shift in how fans access local baseball. MLB is stepping in to directly manage the production and distribution of their games, a move triggered by the financial woes of Main Street Sports Group (formerly Diamond Sports Group and operating the FanDuel Sports Network). This isn’t just a Tampa Bay story; it’s a potential blueprint for the future of regional sports broadcasting.
The Fallout of the RSN Model
For decades, Regional Sports Networks (RSNs) were the dominant force in delivering local games. Diamond Sports Group, once the largest RSN owner, filed for bankruptcy in 2023, signaling deep cracks in the model. The core issue? The traditional cable bundle is unraveling. As more viewers “cut the cord” and opt for streaming services, the revenue flowing to RSNs has dwindled. Main Street Sports Group’s subsequent struggles and inability to secure rights payments from teams like the Rays only accelerated the crisis. According to Nielsen, traditional TV viewership among adults 18-49 declined by nearly 10% in 2023, further highlighting the shift.
The situation underscores a fundamental problem: the cost of sports rights remains high, while the means of delivering those games to a paying audience are becoming increasingly fragmented and competitive. Teams are realizing they can’t solely rely on a shrinking cable subscriber base to fund their broadcasts.
MLB’s Direct-to-Consumer Play
MLB’s intervention isn’t simply a rescue mission; it’s a strategic move towards greater control and a direct-to-consumer (DTC) approach. By taking over broadcasts, MLB can offer games through a combination of traditional cable/satellite, and crucially, its own streaming service, MLB.tv. This eliminates blackout restrictions that have long frustrated fans. Rays CEO Ken Babby emphasized this point, stating fans can now stream games on the MLB app without blackouts.
This strategy mirrors what other leagues are exploring. The NHL’s Tampa Bay Lightning, for example, partnered with E.W. Scripps Co. for over-the-air broadcasts and a dedicated streaming app, offering a $66 annual subscription. This demonstrates a willingness to experiment with alternative distribution models.
Did you know? MLB Commissioner Rob Manfred has stated that local media provides over 20% of industry revenue for major league teams, making this a critical area for financial stability.
Beyond Baseball: Implications for Other Regional Sports
The challenges facing MLB RSNs aren’t unique. The NBA and NHL are also grappling with similar issues. The Orlando Magic, still partnered with Main Street, is reportedly making contingency plans, and the future of regional broadcasts for other teams remains uncertain. Expect to see more leagues and teams exploring direct control over their broadcasts, either independently or through partnerships with larger streaming platforms.
The Atlanta Braves’ reported consideration of launching their own broadcast network is a particularly interesting development. This would represent a significant investment but could offer greater long-term control and revenue potential. It’s a bold move, but one that could set a precedent for other large-market teams.
The Hybrid Future: Cable, Streaming, and Over-the-Air
The most likely outcome isn’t the complete demise of traditional cable, but a hybrid model. MLB’s approach – offering games on cable, satellite, and streaming – is a pragmatic one. Rick Schlesinger, President of Business Operations for the Milwaukee Brewers, noted the “bundle” of cable is changing, but a robust audience still exists. The key is providing fans with optionality – multiple ways to access games based on their preferences and budgets.
Over-the-air broadcasts, like the Lightning’s deal with E.W. Scripps, could also play a larger role, particularly in markets with strong local viewership. This offers a free, accessible option for fans who don’t want to subscribe to streaming services.
The Role of Streaming Giants
While MLB is taking a more hands-on approach, the potential for partnerships with major streaming services like Amazon, Apple, or DAZN remains. DAZN’s failed attempt to acquire a stake in Main Street Sports Group highlights the interest in entering the regional sports market, but also the financial risks involved. These platforms could offer MLB (and other leagues) access to a wider audience and sophisticated streaming infrastructure.
FAQ: Navigating the Changing Landscape of Regional Sports
Q: Will I still be able to watch my local team if I don’t have a streaming subscription?
A: MLB is committed to ensuring games remain available on traditional cable and satellite providers alongside streaming options.
Q: What happened to Bally Sports?
A: Bally Sports, formerly the largest owner of RSNs, filed for bankruptcy and was rebranded as FanDuel Sports under Main Street Sports Group. However, the network is facing financial difficulties.
Q: Is this change going to cost me more money?
A: Pricing for MLB.tv subscriptions will be announced this month. The cost will likely vary depending on the package and features offered.
Q: Will other sports leagues follow MLB’s lead?
A: It’s highly likely. The challenges facing RSNs are widespread, and other leagues are actively exploring alternative distribution models.
Pro Tip: Stay informed about your local team’s broadcast plans by checking their official website and social media channels.
What are your thoughts on MLB taking control of its local broadcasts? Share your opinions in the comments below! For more insights into the evolving world of sports media, explore our other articles on WUSF Sports.
