The RSN Reckoning: How Teams Are Adapting with Direct-to-Consumer Streaming
- Skyrim.AI Expert Series
- Jun 25
- 13 min read
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The Collapse of the Old RSN Model
Remember when regional sports networks (RSNs) were cash cows? That era is ending fast. Cord-cutting has gutted the once-lucrative RSN business as millions of households cancel cable each year 1. Subscriber declines, combined with costly rights fees, have pushed RSN operators to the brink. Diamond Sports Group – which runs the Bally Sports RSNs – even filed for bankruptcy in 2023 under $8 billion of debt, a collapse few imagined just a few years ago 2. Warner Bros. Discovery likewise exited the RSN business, leaving teams scrambling for alternatives 3.
The traditional RSN model peaked in the 2000s and early 2010s, then entered a death spiral once cable subscriptions started dropping 5. Teams enjoyed guaranteed TV money but at the cost of reaching fewer fans every year. As one media consultant put it, “The current RSN model is not working… the pay-TV audience is declining by 10–12% per year.” 1 Fewer fans can actually watch local games now, undermining the next generation of fandom. In many markets, teams are now witnessing the downside of those long-term RSN deals: a shrinking audience and unstable broadcast partners.
The recent bankruptcy of Diamond/Bally Sports underscores this RSN reckoning. Diamond’s 19 Bally Sports networks lost so much value that their equity valuation plummeted from $20B in 2018 to about $600M in 2024 4. In March 2023, Diamond began skipping rights fee payments, prompting leagues to intervene. Major League Baseball took over San Diego Padres telecasts after Bally missed a payment, using the opportunity to “remove blackouts on local games… and expand the reach… by more than 2 million homes,” according to MLB’s media chief Noah Garden 6. This was a sign: the old pay-TV model is crumbling, and teams can’t count on RSNs to deliver the revenue – or reach – they once did.
Teams Taking Control with Direct-to-Consumer Streaming
With the RSN model in free-fall, many teams aren’t waiting around. Since 2023, a wave of teams across the NBA and NHL have seized back control of local distribution – often by pairing free broadcasts with direct-to-consumer (DTC) streaming services. These team-driven solutions put fans first, even if it means short-term revenue pain. Let’s look at some leading examples of this trend:
Phoenix Suns (NBA) – In 2023, the Suns ditched Bally Sports and struck a deal with Gray Television to air all games free over-the-air (OTA) across Arizona. This “fans first” approach instantly tripled the number of homes with access to Suns games (from 800,000 to ~2.8 million) 7. The Suns also launched “Suns Live,” a DTC streaming app (via Kiswe) for local fans at $14.99/month or $109.99/year 8. New owner Mat Ishbia prioritized reach over rights fees, believing if the team grows its fan base now, revenue will follow 9.
Vegas Golden Knights (NHL) – After their RSN partner shut down, the 2023 Stanley Cup champions went “back to the future” with free TV and a streaming twist. The Knights signed a multi-year deal with Scripps to air all games on local OTA channel Vegas 34, free to Nevadans 3. At the same time, they rolled out KnightTime+, a direct-to-consumer app offering all locally televised games live and on-demand. Priced at $69.99 for the season (or $6.99 per game), KnightTime+ lets cord-cutters watch every Knights game in-market 10,11. As team president Kerry Bubolz explained, this move makes the Knights “more accessible than ever before” to fans who don’t have cable 12.
Utah Jazz (NBA) – The Jazz embraced an “experimental post-cable” approach for the 2023–24 season. They returned to their old partner KJZZ-TV for free broadcasts in Utah and surrounding states 13, and launched Jazz+, a DTC streaming service. Jazz+ offers live games and exclusive content for $15.50 per month, $125.50 per year, or even single-game passes for $5 14,15. The annual package (80+ games) comes out to ~$1.50 per game, with perks like free tickets and merch for early subscribers 16. Jazz owner Ryan Smith acknowledged it’s more work to start from scratch, but “long term you’re gonna have that freedom… to build your brand” by owning the platform 17.
Washington Wizards (NBA) – In Washington D.C., Monumental Sports & Entertainment (owner of the Wizards and NHL’s Capitals) bought out their RSN and rebranded it as Monumental Sports Network. In late 2023 they launched a DTC streaming service so any local fan can subscribe to watch Wizards, Capitals, and WNBA Mystics games without cable 18,19. The service costs $19.99 a month (or $199.99 annually) and includes the live 24/7 channel feed, on-demand replays, and even alternate camera angles and real-time stats for home games 20. Annual subscribers get perks like merch discounts and ticket presales, as Monumental uses the platform to deepen fan engagement 21,22. “Our goal… is to make our games accessible to fans in-market who don’t have cable,” said Monumental’s media president Zach Leonsis 23 – a marked shift from the old cable-only days.
Dallas Stars (NHL) – The Stars took perhaps the boldest step in 2024: exiting their Bally Sports deal early to go all-in on digital. In a mutual agreement amid Diamond Sports’ bankruptcy, the Stars walked away from their RSN contract and launched Victory+, a free, ad-supported streaming network 24, 25. Every locally televised Stars game will stream for free on Victory+ across the Dallas-Fort Worth region – no subscription required 26. (The only exception: national broadcasts on ESPN/TNT still air normally 27.) Victory+ is co-owned by the Stars and tech partner APMC, which provided a revenue guarantee to help “de-risk” the move 28. As Stars CEO Brad Alberts put it, “Direct-to-consumer is the future for local sports… Let’s control our own destiny and not be tied to [the RSN] anymore.” 29
These examples show a clear trend: teams are reclaiming control of their local media. Many deals involve a hybrid “beam and stream” strategy – games air free on broadcast TV and stream online, ensuring fans can watch on any screen 30. Teams are partnering with local broadcasters (Gray, Scripps, Sinclair, etc.) for reach, and with tech companies (Kiswe, ViewLift, etc.) for streaming infrastructure. The common theme is a fan-first distribution mindset: better to sacrifice some short-term TV money in order to reach more fans now and build a sustainable base for the future.
Leagues Step In to Bridge the Gap
Teams aren’t alone in this transition – leagues have been stepping in to avert blackouts and assist with stopgap solutions during the RSN shakeup. In some cases, leagues have become emergency broadcasters; in others, they’re brokering new models to keep games on the air.
Major League Baseball has been the most proactive. When Diamond Sports (Bally) dropped its contract with the San Diego Padres in mid-2023, MLB’s newly formed local media department immediately took over production and distribution of Padres games 31,32. MLB eliminated local blackouts for Padres fans, offering games on cable providers and streaming via MLB.tv for a monthly fee 32. By the end of 2024, MLB was producing broadcasts for seven teams (including the Padres, Arizona Diamondbacks, Cleveland Guardians, and others) where RSNs either folded or lost rights 33. In each case, MLB ensured fans could still watch their team, even if it meant the league temporarily shouldering production costs and offering DTC streaming itself. Commissioner Rob Manfred has framed these takeovers as a chance to “reimagine the distribution model” and widen access for fans 6.
The NBA and NHL, meanwhile, have been navigating a mix of interim fixes and forward-looking pilots. In 2023, 15 NBA and 12 NHL teams were still carried by Bally Sports, but only after Diamond Sports negotiated lower rights fees and full DTC streaming rights in revised deals 34. This kept those teams’ games on the air through 2023–24, albeit with the RSN paying less money. At the same time, the leagues quietly supported teams seeking alternate paths. For example, the Arizona Coyotes (NHL) reached a deal with Scripps to air games free in Arizona and Utah (an intriguing move to cultivate a new market) 35, 36. The Coyotes then launched “Coyotes Central,” a Kiswe-powered streaming service, giving local fans an $11.99/month option to watch without cable 37, 38. Similarly, the Florida Panthers (NHL) and Tampa Bay Lightning both signed new agreements to put games on free local TV (with E.W. Scripps stations) after walking away from Bally Sports 40. The NBA has signaled it’s watching these experiments closely – the Utah Jazz and Phoenix Suns moves were essentially blessed by the league as pilot programs in a post-RSN world 41.
In some markets, teams and leagues have arranged “bridge” solutions with existing regional networks or in-house production:
In Pittsburgh, the Penguins (NHL) and Pirates (MLB) teamed up with new ownership to take over their failing RSN and rebrand it, maintaining a familiar TV channel while adding streaming for cord-cutters.
In Houston, the Astros (MLB) and Rockets (NBA) jointly acquired their AT&T SportsNet channel to secure their local broadcasts after WBD’s exit, again pairing it with a DTC offering for fans.
In Phoenix, after Diamond’s exit, the Suns and MLB’s Diamondbacks split onto different paths (Suns with Gray TV, D-backs under MLB’s wing) but both aimed to keep games widely available.
The common goal: avoid leaving fans in the dark. Whether through league-produced streams, team-owned networks, or interim deals with local TV stations, sports organizations are doing whatever it takes to prevent a worst-case scenario where loyal fans suddenly can’t watch their hometown team. In the short term, that has meant creativity and flexibility – even if it’s just a temporary patch until a more permanent new model emerges.
The Opportunity (and Challenge) in DTC Streaming
Every team that has gone direct-to-consumer understands one thing: this is both a huge opportunity and a significant challenge. Cutting out the old middleman (RSNs) lets teams build a more direct relationship with their audience – but it also puts the onus on teams to replace those hefty TV rights checks with new revenue streams. Let’s unpack the upsides and downsides of DTC streaming for sports teams.
On the opportunity side, DTC streaming creates a direct fan relationship like never before. Teams can now know exactly who their local viewers are, not just vague Nielsen ratings. They get first-party data from streaming subscribers or registered users (in the Stars’ case, an email login is all that’s required 26). This data is a goldmine for marketing: teams can personalize offers, target merchandise or ticket promos to viewers, and understand viewing habits in granular detail. Owning the platform means owning the customer, which is a stark contrast to the old RSN days when the cable company owned the subscriber info.
Teams are also using DTC platforms to enhance the viewing experience. For example, Monumental’s streaming app lets fans toggle between multiple camera angles and see real-time stats during Wizards and Capitals games 20. Other teams have floated ideas like sports betting overlays, alternate commentary feeds, and social features integrated into the stream. These kinds of interactive bells and whistles are much easier to roll out on a digital platform than via a traditional TV broadcast. In a DTC world, watching a game can become an interactive, customized experience, which appeals especially to younger, tech-savvy fans.
Crucially, DTC streaming aligns with young fans’ habits. Millennials and Gen Z are “cord-nevers” who expect content on their phones, tablets, and smart TVs on-demand. A team-branded app or streaming service meets them where they are. For instance, the Vegas Golden Knights saw strong uptake for their affordably-priced KnightTime+ streaming service, suggesting many fans were eager for a standalone way to watch the Knights without cable 10, 11. And by making its Victory+ service free, the Dallas Stars are clearly betting on grabbing as many eyeballs as possible – including new fans – which could pay off in merchandise sales, higher sponsorship value (due to larger audience), and future ticket buyers. As the Coyotes’ CEO described during their streaming launch, flexible DTC options can even reach “fans in waiting” – people who might not yet follow the team closely, but will sample a free broadcast or cheap stream and get hooked 42.
However, the DTC route comes with short-term challenges. The most immediate is the financial gap left by lost RSN revenue. Many teams spent decades enjoying eight-figure annual rights fees from RSNs –money that was locked in regardless of how many people actually watched. Those guarantees are largely gone. A subscription service needs to attract tens or hundreds of thousands of paying customers to match the old deals. Even a $20/month offering requires serious volume: for example, at $19.99 a month, it would take roughly 100,000 subscribers to generate $24 million a year. Few DTC team services are near that scale yet. “DTC platforms offer long-term revenue potential but require innovative solutions to match lost RSN revenue”, noted one tech partner in this space, emphasizing that it will take time to build back the income 43. Teams like the Jazz and Suns have openly acknowledged they likely won’t equal their previous TV earnings in the first years of DTC 9. This puts pressure on teams to find new sponsors and creative monetization (e.g. more in-stream ads, higher ticket prices, or bundling perks to justify subscription costs).
Another challenge is ensuring stream quality and reliability. Sports fans are used to flipping on the TV and seeing a smooth broadcast. If a streaming app buffers, lags behind real-time, or crashes at a critical moment, fans will be frustrated. Teams must invest in robust streaming infrastructure and customer support – which is why many have partnered with experienced tech firms (Kiswe, ViewLift, etc.) rather than building from scratch. Still, the onus is on the team (not a big network) to deliver a broadcast-quality product across many device types and internet conditions. It’s a new kind of operational challenge that sports franchises haven’t dealt with in the past.
Finally, teams going direct must navigate league restrictions and competitive issues. Leagues still enforce local territory blackouts – for instance, Suns Live and Jazz+ are only available to in-state viewers 44. Out-of-market fans have to use NBA League Pass or equivalent, due to national media contracts. Teams can’t simply sell their games globally on their own, at least not yet. So DTC hasn’t completely solved the blackout problem (except in cases where the league itself stepped in, like MLB did for the Padres with no blackouts 6). Teams also have to coordinate on pricing and packaging to ensure one club’s approach doesn’t undercut another’s (this is especially true in MLB and NBA where league-wide media deals share revenue). In short, the opportunity is real – but so is the learning curve.
The Road Ahead: Fragmentation or flexibility?
As we look to the future of local sports broadcasting, one big question looms: are we heading toward a fragmented mess of team-specific apps, or a more flexible ecosystem for fans? The answer might be a bit of both.
On one hand, there’s a risk of consumer fragmentation. A die-hard sports fan who follows MLB, NBA, and NHL teams in one city might soon need to juggle three different streaming services to catch all the local action. For example, a Phoenix-area fan could have one app for Suns games, another for Diamondbacks (via MLB), and yet another for Coyotes – whereas one RSN used to carry all three. Too many apps and logins can frustrate fans, especially older viewers who are used to the simplicity of channel surfing. The user experience could suffer if every team and league goes its own way. This concern has been voiced by many in the industry: if fans face confusing barriers, some might simply tune out. Leagues are aware of this and could eventually seek a more unified platform (there’s already speculation about an NBA-wide service for local games down the line), but nothing concrete is in place yet.
That said, the current shakeup also offers unprecedented flexibility. Without the RSN straitjacket, teams can experiment with new distribution partnerships and technologies. We’re seeing a new ecosystem form, one that might ultimately be more resilient. No single model is likely to dominate – and that’s not necessarily bad. Some markets might coalesce around a few regional streaming hubs (imagine a single service for all Los Angeles teams, for instance), while smaller markets might stick with free broadcast TV plus a team app. There’s also the possibility of tech giants entering the chat: could Apple, Amazon, or YouTube aggregate these local streams in the future? The NBA’s next media rights negotiations (set for 2025) are rumored to include options for greater direct-to-consumer offerings, perhaps in partnership with a streaming platform.
For teams and fans, the key will be adaptability. Teams that embrace flexibility, invest in fan-centric features, and price their services smartly will likely thrive. Those that cling to the fading RSN payouts or fail to market their DTC options could struggle. It’s telling that even in traditionalist markets, owners are now talking like innovators. “Enough’s enough. Let’s get out of this. Let’s control our own destiny,” said the Stars’ CEO about leaving the RSN model 29. That sentiment is echoing in boardrooms across pro sports.
Yes, the transition away from RSNs means short-term pain and uncertainty. There will be experiments that falter (some DTC services might merge or fold if uptake is low). There will be older fans who feel left behind until teams find ways to accommodate them (for instance, the Stars have considered putting a small package of games on a local TV channel to appease non-streamers 27). But there’s also a long-term vision taking shape: one where teams have full control over their content and brand, and fans have more ways than ever to watch – on their terms.
In this new direct-to-consumer era, the winners will be those who put fans first and innovate accordingly. The local sports broadcast of 2025 might be on an app or a streaming stick instead of cable, but if it’s more interactive, more personalized, and more accessible, that’s a trade-off many are willing to make. The RSN reckoning has been a wake-up call. Teams are now rewriting the playbook for local media, and while the final score is yet to be decided, one thing is clear: the game has changed, and there’s no going back to the old rules.
Sources: Recent industry reports and news on RSN declines, team streaming launches, and league interventions 4, 7, 10, 14, 18, 6, among others, from 2023–2025. The trend is rapidly evolving, and sports executives and investors should keep a close eye on these direct-to-consumer experiments as the new season approaches.
Footnotes
1, 5, 7, 9 - Suns Put Fans first, Announce Local Games to be Available OTA [May 4, 2024], https://www.johnwallstreet.com/p/suns-put-fans-first-announce-local-games-available-ota
2, 33, 44 - Diamond Sports Group gets approval to emerge from bankruptcy - ESPN [May 4, 2023], https://www.espn.com/mlb/story/_/id/42388454/diamond-sports-group-emerges-bankruptcy
3,10,11,12 - Vegas Golden Knights announce KnightTime+ streaming platform [Sep 25, 2023], https://awfulannouncing.com/nhl/vegas-golden-knights-knighttime-streaming-platform-scripps-dtc.html
4 - Analyst details just how bad the RSN business has gotten [Oct 18, 2024],
6, 31, 32 - MLB takes over Padres broadcasts Wednesday after Bally misses payment [May 31, 2023], https://www.wsls.com/business/2023/05/31/mlb-takes-over-padres-broadcasts-wednesday-after-bally-misses-payment
8, 44 - How to watch the Phoenix Suns online [Oc 4, 2023],
13,14,15,16,17,41 - Utah Jazz Launch Streaming Service Amid RSN Shakeup [Sep 27, 2023],
18,19,20,21,22,23 - Monumental Sports Network's streaming service to serve cord cutters - The Washington Post [Oct 10, 2023], https://www.washingtonpost.com/sports/2023/10/10/monumental-sports-network-streaming-capitals-wizards-mystics
24,25,26,27,28,29 - Stars taking all local broadcasts to new ad-supported digital platform [July 7, 2024],
30,37,38,42 - Coyotes Launch Direct-to-Consumer Streaming Platform in Partnership with Kiswe and Scripps Sports | NHL.com [Feb 16, 2024],
35 - Scripps Sports to start broadcasting Arizona Coyotes games - KJZZ [Oct 6, 2023],
36 - Scripps Sports will air Coyotes games in both Utah and Arizona [April 23, 2024],
40 - Anaheim Ducks will move local broadcasts from Bally to over-the-air [Aug 27, 2024],
43 - Transmit & ViewLift Partner to Revolutionize Sports Streaming [Dec 5, 2024],
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