The landscape of sports broadcasting is rapidly evolving, particularly as traditional cable models face significant challenges. Teams from the NBA, NHL, and MLB are adapting to a new paradigm where they must explore alternative avenues for their media rights. A notable example of this shift is the Utah Jazz, which had a long-standing relationship with AT&T SportsNet Rocky Mountain. Following the network’s closure, the Jazz became one of the first teams to embrace the “stream and beam” model, where they leverage local over-the-air broadcasts combined with digital streaming options. However, launching a direct-to-consumer platform proved challenging, prompting the Jazz to partner with streaming technology company Kiswe, which helped them create Jazz+, a service featuring customizable broadcasts and multi-device compatibility.
The urgency for teams to pivot is underscored by the broader context of regional sports networks facing financial difficulties. NBA Commissioner Adam Silver noted that many regional sports networks have either closed down or are in bankruptcy. While tech giants like Apple and Amazon currently remain on the sidelines, smaller streaming companies like Kiswe, Viewlift, and several others are rapidly positioning themselves to capture this emerging market. Kiswe’s co-founder, Wim Sweldens, emphasized their ambition for growth in diverse teams and leagues worldwide, indicating a competitive environment among these tech firms to secure partnerships with sports franchises, each hoping to capitalize on the ongoing disruption in the media landscape.
Despite the optimistic outlook, the economic realities of streaming services remain complex. The inaugural year of Jazz+ yielded approximately 21,159 subscribers, generating just over $3 million—far below the $25 million that the Jazz received annually from their prior cable contract. While the potential for additional exposure and first-party fan data could foster future growth, analysts point out that it may take time for teams to achieve a financial balance comparable to their previous cable agreements. The evolution of these streaming platforms entails significant investments, including the partnership commitments that firms like Kiswe are making to incentivize teams, emphasizing a long-term vision despite immediate financial losses.
Kiswe is not the only competitor in this space; Viewlift adopts a different business model by providing a software-as-a-service platform for regional sports streaming without taking a cut of the revenue. This approach emphasizes financial independence for the teams, allowing them to retain all the income derived from subscriptions and advertising. Founded by sports executive Ted Leonsis, Viewlift has partnered with various teams and leagues, including the NHL and LIV Golf, touting profitability and the potential for significant growth as its selling points to prospective clients. The competitive dynamics between companies like Kiswe and Viewlift highlight the diversity of strategies within this nascent market.
Amid the transformative changes taking place, there is uncertainty about the future of the “stream and beam” model. MLB Commissioner Rob Manfred has expressed interest in consolidating streaming rights into a national framework, potentially disadvantaging localized streaming efforts. Similarly, partnership developments with major tech players could reshape the broadcasting landscape. The struggles of established players like Diamond Sports Group further complicate matters, as they navigate bankruptcy while attempting to reclaim a foothold. Teams are exploring different strategies, as exemplified by Altitude Sports’ dual approach of maintaining cable broadcasts alongside their newly launched streaming service, signaling a period of experimentation to determine the most viable path forward.
Ultimately, although the transition from traditional cable broadcasts to streaming services presents opportunities for teams to adapt to changing viewer preferences, it is fraught with challenges and uncertainties. The current state of flux necessitates a careful evaluation of partnerships and revenue models. Team presidents and sports executives are acutely aware that the choices they make now will have long-term ramifications on their revenue-generating abilities and fan engagement strategies. As the dust settles on this rapidly evolving broadcasting landscape, only time will clarify which models will prevail and how sports franchises can best connect with their audiences in a digital-first world.
