FORT LAUDERDALE — A generation ago, New York Major League Baseball fans had an easy way to watch a game. Mets fans tuned to WWOR-9; Yankees fans chose WPIX-11. Then came the regional sports networks, as cable TV grew. Today, cord-cutting and other financial pressures has made the RSN a fiscally prickly arena, yielding a return of play-by-play to broadcast stations in various markets including Phoenix.
As the RSN model shows its weaknesses, how are broadcasters working to fill the void? The question was one of several pondered during a panel discussion held Thursday (11/9) at the Matrix Media Ad Sales Summit.
For those hoping to hear from Mike McCarthy, GM of Sinclair Broadcast Group subsidiary Marquee Sports Network — home of the Chicago Cubs, a future event will be needed; McCarthy was unable to attend at the last minute.
But Pat LaPlatney, the co-CEO of Gray Television, which acquired the rights to the Phoenix Suns and Phoenix Mercury and is bringing live action to its “3TV” and CBS5 in Phoenix, was in attendance.
LaPlatney appeared alongside Bob Sullivan, President/CEO of BitFire Studios, described as an “end-to-end live video transmission and production solution built by broadcasters for broadcasters” with operations in Boston and in Phoenix.
With Magid EVP Bill Hague serving as moderator, he set the table by sharing that 23 of the top 50 programs aired last year involved sports. He also noted the struggles with the Bally Sports RSNs and how AT&T shutdown RSNs of its own.
How then does Gray TV look at sports? “It’s the large audiences, right?” he told the crowd at the Conrad, a luxury hotel along Fort Lauderdale Beach. “And, it is a linear product. Our business is really local news, at the end of the day, if you run television stations. And there’s really no better compliment than local sports to local news.”
LaPlatney expressed that Gray is “really happy” with the Suns deal, even as a possible YouTubeTV “blackout” threatens access to games on KTVK-3 in Phoenix. Why? Even if a retransmission consent impasse transpire, reach for the Suns on Bally Sports Arizona left 75% of the market void of access, he claims. “For anybody with a product that’s targeted to a market, only being able to reach 25% of that market is a huge issue,” LaPlatney said. “They saw the value in the distribution that local television can bring. Broader distribution brings higher ad sales rates, better marketing and, ultimately, bigger franchise value. To be candid, if you’re the NBA, it grows the sport of basketball when more people can watch the game.”
With The E.W. Scripps Co. signing agreements with the Arizona Coyotes and the Las Vegas Golden Knights, the Southwestern U.S. has become the pacesetter for bringing big-league sports action to stations that Hague couldn’t even roll off the call letters for.
Chiming in on the production of big-ticket sporting events, Sullivan started with the money. “These are not cheap enterprises you’re getting into,” he said. “Where are you going to make the money, and how are you going to save some money?”
For BitFire, “We’re a white label solution,” and can come in with IP transmission tools, eschewing fiber and satellite.
REVENUE THROUGH LIVE SPORTS
Hague was curious if the value of local television is being shared with the ownership of broadcast sports teams, given the shift in Phoenix. Yes, said LaPlatney, noting that the Suns are particularly media savvy. Now, baseball is on the horizon, with an education working to perhaps turn back the clock on how games are distributed to TV consumers.
With innovation on the production side with sponsorships and shoulder programming, Sullivan explained how he worked with HBCU to expand beyond the idea of just doing games. The result? Pre- and post-game programming from studios BitFire has in Phoenix.
Later in the session, Sullivan made it clear how he views the importance of local sports to broadcast TV station owners. “If the local affiliates didn’t get into the sports business, they’re insane,” he said. “The need to control their destinies, that is no longer tied to a monogynous relationship with your network … that’s over. Streaming has just sped this up, so you better start coming up with new programming/content to stand alone.”
While KTVK is a thriving independent, Sullivan forecasts that many more unaffiliated TV stations will emerge in markets across the U.S. Why? “The network is going to say, ‘We’re moving on,'” Sullivan said.
But, how can broadcast TV compete against the “GAFAN” big-tech giants? LaPlatney explained that Gray TV is in for local and regional deals, whereas Prime Video is looking at national distribution. “Do we worry about that? Sure,” he said. “There are still RSNs out there, and there is local television. Now, we look to what baseball is going to do.”
