Jason Miles
NBA’s Phoenix Suns ignite TV dispute
US sports television debate sparked by Phoenix Suns
Phoenix Suns have sparked a debate on US sports television by announcing a new TV and streaming deal that violates their existing contract with Diamond Sports Group. The relocation raised two issues: the future of RSNs and the teams’ ability to manage their own media rights.
RSNs in decline
Due to the reduction in cable subscriptions brought on by cord-cutting, RSNs have been having trouble lately. As a result, it is now more challenging for RSNs to make money from advertising and carriage charges. Therefore, some RSNs are in bankruptcy or sold at a fraction of their former value.
Phoenix Suns’ new deal
The Suns’ new partnership with Grey Television and Kiswe directly challenges the RSN business model. The agreement enables the Suns to stream games directly to fans instead of going through an RSN. A wave of additional teams could follow suit as a result, significantly weakening the RSN market.
Dispute with Diamond Sports Group
Regarding the Suns’ new contract, Diamond Sports Group is not pleased. In an effort to stop the purchase, the company has filed a complaint in bankruptcy court. According to Diamond Sports Group, the Suns’ new contract is a violation of their original agreement and will hinder the company’s capacity to restructure.
Implications for the future of sports television
The conflict between the Suns and Diamond Sports Group is the most recent illustration of the unrest in the sports broadcasting sector. There may be a significant change in how sports events are distributed as a result of the development of cord-cutting and streaming, which is placing pressure on RSNs.
Conclusion
The Suns’ latest agreement is a risky move that might have a significant impact on the direction of sports television. The Suns’ approach has undoubtedly shaken up the business, but it is still unclear if they will be able to successfully oppose the RSN model.
Additional information
- The new contract with the Suns will pay $200 million annually for ten years.
- The agreement included a clause allowing the Suns to end the agreement after five years if they are unhappy with the outcomes.
- Sinclair Broadcast Group is the owner of Diamond Sports Group.
- Sinclair Broadcast Group owns the most RSNs in the US.
- The Suns became the first NBA organization to agree to a direct-to-consumer streaming agreement.
- People anticipate that the transaction will serve as a significant RSN future test case.
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