Amazon is reportedly close to a deal with Diamond Sports Group (DSG) to bring Bally Sports local broadcasts to Prime Video.
According to the New York Post, fans will be able to pay US$20 a month to watch games involving 12 National Basketball Association (NBA) teams, five Major League Baseball (MLB) franchises, and nine National Hockey League outfits (NHL) from next season.
While financial terms are unclear, the newspaper says the contract would be non-exclusive – freeing up DSG to secure similar partnerships with other platforms.
Amazon had previously agreed to invest US$115 million in DSG as part of a wider financial package designed to help the beleaguered regional sports network (RSN) convince the courts that it has a sustainable business plan and exit chapter 11 bankruptcy protection in the US.
Recent reports suggested that Amazon has had a change of heart and has withdrawn its offer. However, distribution on Prime Video will significantly boost the reach of Bally Sports coverage, aiding DSG’s cause.
DSG first filed for chapter 11 in March 2023, hoping to strike a deal with creditors and negotiate “unsustainable” local rights deals it inherited as part of the $10.6 billion acquisition of the former Fox Sports regional sports networks (RSNs) from Disney in 2019.
The venture has been hindered by a decline in pay-TV households, the lack of a viable direct-to-consumer (DTC) option, and massive debts believed to be up to US$8.5 billion.
Since then, DSG has secured long-term agreements with the NBA and NHL as well as carriage deals with several major cable and satellite platforms. However MLB, which is the most reliant on local broadcast revenue and has been the most vocal critic of DSG, could yet oppose any plan.
Should Amazon conclude the deal, it would bolster a rights portfolio that includes the National Football League’s (NFL) Thursday Night Football and, from 2025, the NBA and Women’s National Basketball Association (WNBA).
SportsPro says…
Despite DSG’s troubles, local sports rights and RSNs are still big business in the US and an important source of revenue for any property that isn’t the NFL.
However, cord-cutting has undermined the economics of the cable bundle in the US, reducing RSN income and limiting exposure for major league sports teams.
Few had given the traditional RSN much hope of survival in the digital era, with several teams opting for a combination of DTC and free-to-air (FTA) coverage as an alternative. Some leagues have even considered bundling local rights with national deals or adding them to first-party streaming deals.
This proposed deal with Amazon offers an idea of how RSNs can adapt to the modern media environment through more affordable subscriptions, non-exclusivity, and platforms that offer the widest reach possible in a fragmented landscape.
