Revenue Concerns

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NBA, MLB Executives Concerned over RSN Model-Related Revenue Drops

There is a significant amount of concern in both the MLB and NBA as it pertains to a recent drop in revenue.

The regional sports network (RSN) business model is in the midst of a serious transition as more and more people continue to move off their cable providers in favor of streaming their sports telecasts.

“The house is on fire here,” one network executive said, referring to the RSN business.

According to reports, local media rights can make up to 50 percent of an MLB team’s total revenue, meaning the current boom in streaming has a massive impact on the entire sport as a whole. Executives from both leagues have met with networks regularly over the past several weeks in an effort to find a new business model for local media rights.

Both the NBA and MLB are hoping to bridge the gap from the current RSN model to a future streaming one.

At the present moment, there seems to be no solution to the growing problem and the longer it takes all parties involved to come up with something, the decline in local team revenue will continue.

The pressure is most certainly on.

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