Nexstar Rejects RSN Model, Prioritizes Local Broadcast for Sports Rights
Nexstar President/COO Michael Biard stated that Nexstar is not interested in recreating the Regional Sports Network (RSN) model or spending heavily on sports rights. This indicates a strategic shift in how the local broadcaster plans to approach sports content distribution and financing amidst upcoming media rights renegotiations by sports leagues.
Key Takeaways
- Nexstar stations carrying full seasons of teams would be "hugely disruptive" to existing programming on Big Four affiliated and CW stations.
- The economics of large sports rights checks, paid for by increasing retransmission fees, "don’t make a lot of sense" for Nexstar.
- Nexstar believes broadcast's reach can help teams grow brands beyond DTC and RSNs, positioning it as a complementary distribution platform.
- Michael Biard's comments indicate a strategic shift for the local broadcaster regarding sports content financing and distribution.
Why It Matters
Nexstar's definitive rejection of the RSN model signals a clear strategic direction away from the traditional, high-cost regional sports ecosystem. This approach could influence how other local broadcasters engage with upcoming sports media rights negotiations, potentially fragmenting regional sports distribution further. Watch for how other station groups respond to the economic pressures of RSNs and whether more partnerships emerge focusing on broadcast-DTC hybrid models.
Read full article at cablefax.com