The regional sports network business model is undergoing a period of significant transition as more and more people cut the cord from their cable providers and become increasingly reliant on streaming.
“The house is on fire here,” one network executive said, referring to the RSN business.
Executives from leagues, teams, distributors and the networks have met regularly over the past several weeks to look into new business models for local media rights.
Local media rights can make up to 50 percent of an MLB team’s total revenue, sources said.
The main topic discussed is how to bridge the gap from the current RSN model to a future streaming one. Any rush toward streaming, however, would mean a decline in local team revenue in the short-term.