New RSN streaming plans continue to emerge

Regional sports networks are increasingly looking to diversify distribution revenues in the face of declining traditional pay TV subscribers. Carriage disputes are becoming more common as networks seek to offset subscriber declines with increases in affiliate fees. As a result, RSN owners like Sinclair Broadcast Group Inc. have been bullish on streaming services, and it seems the rest of the sector is taking notice and following up with similar direct-to-consumer, or DTC, plans of their own.

The Chicago Cubs and Sinclair are said to be in talks to enter the streaming universe and launch a direct-to-consumer product for the co-owned Marquee Sports Network LLC, according to recent news reports. This separate endeavor comes at a time when Sinclair's highly anticipated Bally's DTC platform is still struggling with limited MLB digital rights.

Marquee Sports Network is the exclusive home to "everything Chicago Cub." Although it serves a niche MLB audience, the network still ranked 16th highest in terms of total subscribers with 3.1 million across the 49 major RSNs in 2021. The coveted baseball club's popularity comes at a cost as the network's programming expenses ranked 17th highest at about $114.9 million in 2021. This corresponds to a costly $132 million average annual price tag for Cubs distribution rights, ranking fourth highest across the MLB and sixth highest across all major sports teams.

Considering these fees originate from just a single team, a direct-to-consumer streaming service that caters to a "die-hard" fanbase could be a lucrative shift. Although reports suggest a 2022 DTC product, the ongoing MLB lockout negotiations could potentially push back the season start date as well as the timeline for launching a streaming service.