Regional sports networks or RSNs are struggling. AT&T SportsNet will reportedly shut down later this year. Bally Sports RSNs are in bankruptcy and their future is largely uncertain at this time. According to Sports Business Journal, Spectrum, one of the biggest cable TV companies in the market, reportedly plans to offer a cheaper TV package later this year that will sideline RSNs and other league-owned sports channels.
In Q3 2023, Spectrum TV customers will have the option to choose a Spectrum Select Plus plan with RSNs or a Spectrum Select Signature plan without the local RSN. In the past, even Spectrum’s basic cable television packages included RSNs, which helped Bally Sports and others subsidize the RSNs.
Spectrum says they will only make these new packages available to new customers or customers who wish to change their programming package. So if you want to get that cheaper package, you have to ask for it.
Spectrum says they will also offer direct-to-consumer streaming packages to RSNs. Customers can subscribe to their local RSNs if they want them directly.
Charter hopes these cheaper packages will help retain customers looking to cut the cord. Many cable cutting services no longer offer RSNs, which helps them keep their price down. This helps cable cutting services attract subscribers who do not watch sports, or at least any sports offered on local RSNs.
However, there is a catch: in order for Spectrum to offer these packages, all RSNs in that market must have agreed to a new deal with them. Currently, Spectrum has new contracts with RSNs in 85% of its markets. The remaining RSNs are up for renewal over the next year.
If this plan is successful, other cable TV providers will likely copy it and offer cheaper TV packages.