NBC Sports launched its revamped regional sports network in Chicago, with one major distributor, DISH Network Corp., on the sidelines.
The satellite service's customers, as well as subscribers to its virtual provider Sling TV, have lost access to NBC Sports Chicago (US), as the parties could not come to terms on a new carriage deal.
Major League Baseball's Chicago Cubs exited the network to form a joint venture with Sinclair Broadcast Group Inc. that will result in a dedicated channel for the club, Marquee Sports Network, leading NBC Sports Chicago to revise its deals with three other area professional teams: the NHL's Blackhawks, the NBA's Bulls and the MLB's White Sox.
The new channel lineup, featuring expanded coverage of the above-mentioned trio of pro teams, has its debut Oct. 1.
As has been the case in other recent battles on the RSN front, DISH said it was willing to reach a deal based on those who watch sports action, while it said NBC Sports wants payment based on a guaranteed number of subscribers.
"The regional sports model has been broken for years, and we’re facing a critical point in our industry," Andy LeCuyer, DISH senior vice president of programming, said in a statement. "NBC Sports Chicago is losing its most popular content in the Cubs, while demanding payment on a guaranteed minimum number of subscribers, when only a fraction watch the channel. It simply makes no sense for our customers."
DISH said it offered a short-term contract extension to keep the channel available to subscribers while negotiations continued, but NBC Sports Chicago balked.
NBC Sports Chicago has signed new affiliate pacts with parent Comcast Corp., the largest cable operator in the Chicago market, as well as RCN Corp., WideOpenWest Inc. and other smaller operators. Virtual providers, such as Google LLC's YouTube TV, Sony Corp.'s PlayStation Vue and Hulu LLC's live TV offering, are also on board.
The regional sports network also averted a disruption of service with the nation's leading satellite provider DIRECTV by inking a temporary deal with DIRECTV parent AT&T Inc., as they continue to negotiate toward a definitive agreement.
In a statement, NBC Chicago thanked the distributors that "recognized" the channel’s value.
The RSN could face its first true flash point Oct. 4 with DISH subscribers, when the Blackhawks open their 2019-2020 NHL season against the Philadelphia Flyers.
DISH and Sling TV have not carried 21 regional sports networks now owned by Sinclair since late July. DISH, Comcast and DIRECTV are all also engaged in a standoff with Altitude Sports & Entertainment (US), the RSN home of the NHL Colorado Avalanche and the NBA Denver Nuggets. The Avalanche begins its season against the Calgary Flames on Oct. 3.
MoffettNathanson telecom analyst Craig Moffett in a recent research report forecast DISH, which is also involved in other carriage disputes, including one with Fox Corp., will continue to shed subscribers during the third and fourth quarters. The analyst estimates that the satellite service will finish the period ended Sept. 30 with 9.42 million subscribers and 9.22 million customers at year-end, down from 9.91 million at the close of 2018.
As for its Sling TV product, the streaming service finished 2018 with 2.42 million subscribers. Moffett expects 2.48 million subscribers in the third quarter and 2.49 million customers by year-end.
