From their first conversation about launching what would be Chicago Sports Network, the Blackhawks committed to continuing their longtime partnership with the Bulls and White Sox. But the Wirtzes should’ve broken their pinky-swear agreement with the Reinsdorfs when they had the chance.
While Hawks fans remain frustrated with CHSN’s absence from Comcast cable, a division rival is pioneering a free, direct-to-consumer streaming service that has fans euphoric and more connected to their team than ever. And within the Hawks’ organization, there’s regret they didn’t do it themselves.
This season, the Stars launched Victory+, an app available on smart TVs, tablets and smart phones where fans can watch games within the team’s four-state territory. Anyone outside can watch related programming and other sports content for free. The Ducks joined for their region, and the media company that created the service is looking for more partners.
“We’d love to work with Chicago Sports Network,” said Neil Gruninger, president and CEO of A Parent Media Co. “There’s elements of what we can bring to the table that will help in that space. Every team has a different problem to solve. We’re just trying to help in any way we can. We have a very flexible product and streaming service that allows for any real business model to participate in Victory+.”
Granted, CHSN is available for free over the air with an antenna, but that option hasn’t been infallible. Obstructions and weather can affect the signal, distorting or erasing the picture. As much as viewing habits have changed with the advent of streaming, people still want to watch where they are. And for about 1 million people in the Chicago market, that’s on Comcast.
Stars president and CEO Brad Alberts said the team chose its path needing to fix distribution and address economics. The Stars were leaving what was then Bally Sports Southwest, which Alberts said was in the worst financial shape of all RSNs. After spending last season working with Gruninger’s team and getting financial security from the company to “de-risk” themselves, the Stars agreed to a seven-year deal.
“I don’t know that this is the answer, but we believe that streaming is the future, and we were not afraid to go there now,” Alberts said. “What you’re seeing in other places – your market is one of those – is that there are teams still trying to hold on to the old way that we all benefitted from through the RSN network. They’re trying to go to the cable companies or DirecTV to get the rights fee to stay on linear TV.
“I think it’s showing to be way more difficult than people thought. There’s certainly money there still, but that revenue stream continues to decline, and I just don’t think that’s going to be there long-term. We’re trying to get ahead of where this is going. That’s ultimately the reason why we did it.”
Not everyone is sold on the idea yet. The NBA’s Mavericks, who share American Airlines Center with the NHL’s Stars, sell a direct-to-consumer service while also putting every game over the air.
“I don’t see how teams can make up the revenue lost from RSNs,” said Mark Cuban, former principal owner and current minority owner of the Mavericks. “But it’s a smart step towards trying.”
MLB’s Rangers recently joined Victory+, but they’ll charge $100 for a season pass to stream every game. For the Stars, Ducks and other potential partners, Gruninger still sees paths to success through ad sales.
“We’re facilitating a platform where brands can get the reach they’re looking for,” he said. “We extend the arena experience to the home, and that comes with brands that are already spending there. We have relationships from a national standpoint with advertisers that have been spending with us for years. And then our ad technology de-risks any revenue that we might leave on the table.
“If Chicago Sports Network came into the equation, they would own their hub within Victory. It’s a shame that there’s revenue there that the team is losing out on. They want to charge? Great, that’s their own M.O. We have a different deal structure. Going free is the best method.”
Said Alberts: “We have fixed distribution; everybody can get the games. We have not charged; we have made it very easy to download the app. The viewing experience has been incredible. We’re working through the economic viability. That’s still the question mark. We’re only four months in.”
It will take years to determine whether teams can compensate for losing a guaranteed rights fee, however diminished. The Stars dropped a revenue stream hoping that wider distribution will lead to economic benefits elsewhere, such as engaging a younger audience and selling more tickets and merchandise. It certainly beats the alternative.
“The risk that these clubs are facing is that they become irrelevant,” Gruninger said. “What we’re seeing now is that younger audiences are coming to watch the Stars. Almost 30% of our viewers are under 25. That’s amazing. There’s an audience that we are training not to care. The risk is that those brands, Original Six or not, become obsolete.”
Remote patrol
- Leila Rahimi will host Chicago Sports Network’s Bulls studio shows tonight in place of Jason Goff, who’s on paternity leave. Rahimi made her CHSN debut filling in Wednesday.
- The Blackhawks’ game at noon Saturday against the Panthers will air on ABC 7. The excitable Bob Wischusen, analyst Ryan Callahan and reporter Leah Hextall have the call.
- For the first time, Apple TV’s MLS Season Pass will be available through Comcast and DirecTV services this season. It also will be available for free to T-Mobile customers.