Sports streaming is in its fragmented era

SportsNet Pittsburgh, the regional sports network home to Pittsburgh Penguins and Pittsburgh Pirates broadcasts, yesterday announced that it’s launching a new standalone, direct-to-consumer streaming service that costs $17.99/month.

This seems to be a growing trend:

• NESN, which broadcasts Red Sox and Bruins games, became the first regional sports network to offer a streaming alternative outside cable TV in 2022, charging $29.99/month.
• And because what the Red Sox do the Yankees have to do better, the YES Network, home of the New York Yankees, Brooklyn Nets, and New York Liberty, last year launched its streaming service, which is available for $24.99/month.
• MSG Network, which airs New York Knicks, New York Rangers, and New Jersey Devils games, also launched a new streaming service last year and charges $29.99/month.

Regional sports networks, once a lucrative business, are chasing revenue amid the demise of cable TV. Diamond Sports, the owner of the largest portfolio of regional sports networks, also launched streaming services for some of its teams in a bid to stop the bleeding of cable TV subscribers – before filing for bankruptcy in 2023 and exiting some contracts to avoid paying high rights fees.

But consolidation could be right around the corner. Disney/ESPN, Fox, and Warner Bros. Discovery – who collectively hold the rights to all of the major professional sporting league events, the major college sports divisions, and more – plan to launch a standalone sports streaming service this fall.