Pittsburgh Pirates pitcher Paul Skenes.
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The regional sports network that broadcasts Pittsburgh’s MLB and NHL teams is launching a direct-to-consumer streaming service, the latest move as more fans are cutting the cord.
SportsNet Pittsburgh on Monday unveiled SNP 360, which will require fans in their local markets to spend $17.99 per month to watch Pirates and Penguins games outside of a pay-TV bundle. Viewers with a pay-TV subscription will also have access to the app.
The streaming offer for the Pirates and Penguins – the highest-rated NHL teams heading into the 2023-24 regular season – comes as the regional sports network business, a key part of the professional league’s media rights model, is affected by the change. It happens. Streaming. This also follows the changes that occurred at SportsNet Pittsburgh last year.
When the network came under new ownership last year warner bros discovery Exited the regional sports network business, which it inherited in the 2022 merger between WarnerMedia and Discovery.
The network is now owned by Pirates and Penguin. Fenway Sports Group, which owns the Boston Red Sox, Agreed To acquire a controlling stake in Penguin in 2021. Fenway Sports Group and Delaware North, which is also the parent company of the Boston Bruins, own regional sports network NESN, which manages SportsNet Pittsburgh.
“Our desire is to reach fans wherever they are and give them options to access our clubs’ broadcasts,” said Sean McGrail, CEO of NESN and SportsNet Pittsburgh. “There are now many people who do not subscribe to a linear TV bundle, and we wanted to make sure they had the opportunity to engage with our teams and become part of the fan base.”
Pittsburgh Penguins left wing Jake Guentzel (59) celebrates a first period goal with the team bench during the regular season NHL game between the Pittsburgh Penguins and the Toronto Maple Leafs at Scotiabank Arena on November 20, 2021 in Toronto.
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SNP 360 came together quickly over the past six months when NESN took over operations of SportsNet Pittsburgh, McGrail said. He said the network is offering the service at an “aggressive price point”, lower than the cost of most other regional sports streaming plans, while it builds its own content beyond the Pirates and Penguins.
NESN, which broadcast Red Sox and Bruins local games First The regional sports network will offer a streaming option for its market in 2022. NESN 360 is available for $29.99 per month or $180 for the first year on an annual plan.
Last yearYes Network, home of the New York Yankees, Brooklyn Nets and New York Liberty, launched its streaming service at $24.99 per month. MSG Network, which airs New York Knicks, New York Rangers and New Jersey Devils games, launched A new streaming service in 2023 and charges $29.99 per month.
Regional sports networks, once a lucrative business, have been particularly squeezed as consumers have opted out of traditional pay-TV bundles in favor of streaming.
Many now offer streaming options to regain those customers. Networks remain careful about pricing to avoid further disrupting the pay-TV model and violating contracts with distributors.
Contracts with pay-TV distributors help support the billions of dollars in fees that networks pay professional sports teams to broadcast their games.
Diamond Sports, owner of the largest portfolio of regional sports networks, also launched streaming services for some of its teams before applying bankruptcy Security in 2023. During the bankruptcy proceedings, Diamond has abandoned contracts with some teams to avoid paying high rights fees.
“It’s definitely been a challenging time,” McGrail said. “But those times bring opportunities, and you have to think proactively about your distribution strategy and how you will handle distribution in the future. It addresses the needs of a certain group of people who don’t live in the country Linear world now. We’re trying to be flexible and make sure we’re supporting these fans.”