EL SEGUNDO, Calif.—Spectrum Networks has announced a new, multi-year distribution agreement with DirecTV for regional sports networks Spectrum SportsNet and SportsNet LA.
At a time when pay TV operators have been looking for ways to cut costs and have been dropping regional sports networks, this new agreement offers a significantly lower penetration threshold, giving DirecTV the ability to provide more affordable and flexible options to customers not interested in premium sports programming while still serving those who want live NBA Los Angeles Lakers and MLB Los Angeles Dodgers games.
“While viewing habits continue to shift, it’s clear that regular season professional sports programming remains extremely popular with a core base of traditional cable, satellite, and OTT customers,” said Dan Finnerty, senior vice president and general manager, Spectrum Networks. “That said, given these customers represent a relatively small percentage of the overall video subscriber base, and recognizing the marked increase in direct-to-consumer choices, the model for RSNs needs to evolve to reflect the realities of the current marketplace. With this agreement, we are taking a step to shift the business model so that customers have more control.”
As usual, financial terms of the distribution agreement were not revealed.
Under the new deal, DirecTV, DirecTV Stream, and U-verse customers throughout Southern and Central California, portions of Nevada including Las Vegas, as well as Hawaii will continue to enjoy live coverage of future Dodgers and Lakers games, pregame and postgame analysis, as well as exclusive studio and original programming such as “Backstage: Dodgers” and “Backstage: Lakers.”
“DirecTV continues to believe in the power of local sports, while also recognizing the demands of the many homes we serve with other diverse programming interests,” said Rob Thun, chief content officer of DirecTV. “This agreement with Spectrum Networks achieves three key objectives – putting consumers first, recognizing local value, and enabling both parties to extend their relationship with long-term, mutual benefits.”
