The Decline and Fall of Regional Sports Networks

The business model challenges faced by regional sports networks (RSNs) due to cord-cutting are causing a ripple effect across the TV ecosystem. While some bigger-market RSNs are staying afloat, many others are struggling, with Warner Bros. Discovery planning to exit the space. Diamond Sports, formerly Fox Sports RSNs, filed for bankruptcy protection, leading to the loss of control over San Diego Padres games. The future of live local sports could involve direct-to-consumer streaming services and national distribution through platforms like Amazon, YouTube, or Apple. The RSN struggles are already impacting the TV business, with companies making strategic moves for a post-RSN world. The landscape is shifting, and the local sports media industry is expected to undergo a major transformation.