Pittsburgh Pirates, Penguins launch streaming service for native video games

The regional sports activities community that airs Pittsburgh’s MLB and NHL groups is launching a direct-to-consumer streaming service, the most recent to take the step as extra followers reduce the twine.

SportsNet Pittsburgh on Monday unveiled SNP 360, which can price followers in its native market $17.99 a month to look at Pirates and Penguins video games outdoors of the pay-TV bundle. Viewers with pay-TV subscriptions may also have entry to the app.

The streaming providing for the Pirates and Penguins — the highest-rated NHL staff within the 2023-24 common season — comes because the regional sports activities community enterprise, a key piece of the skilled leagues’ media rights mannequin, takes a success from the shift to streaming. It additionally follows a shakeup at SportsNet Pittsburgh final yr.

The community got here beneath new possession final yr when Warner Bros. Discovery exited the regional sports activities community enterprise, which it inherited within the 2022 merger between Warner Media and Discovery.

The community is now owned by the Pirates and Penguins. Fenway Sports activities Group, which owns the Boston Pink Sox, agreed to accumulate a controlling stake within the Penguins in 2021. Fenway Sports activities Group and Delaware North, additionally the mum or dad firm of the Boston Bruins, personal the regional sports activities community NESN, which manages SportsNet Pittsburgh.

“Our need has been to succeed in followers wherever they’re and provides them choices to entry our golf equipment’ telecasts,” mentioned NESN and SportsNet Pittsburgh CEO Sean McGrail. “There are a lot of folks now who do not subscribe a linear TV bundle, and we wished to ensure that they had the chance to interact with our groups and be a part of the fan base.”

SNP 360 got here collectively rapidly during the last six months when NESN took over operations of the Sportsnet Pittsburgh, McGrail mentioned. He mentioned the community is providing the service at “an aggressive value level,” decrease than the price of most different regional sports activities streaming plans, whereas it builds up its content material past the Pirates and Penguins.

NESN, which broadcasts Pink Sox and Bruins native video games, was the first regional sports activities community to supply a streaming various for its market in 2022. NESN 360 is on the market for $29.99 a month, or $180 for the primary yr on the annual plan.

Last year, the YES Community, dwelling of the New York Yankees, Brooklyn Nets and New York Liberty, launched its streaming service for $24.99 a month. MSG Community, which airs New York Knicks, New York Rangers and New Jersey Devils video games, launched a brand new streaming service in 2023 and fees $29.99 a month.

Regional sports activities networks, as soon as a profitable enterprise, have been significantly squeezed as customers choose out of the normal pay-TV bundle in favor of streaming.

Many now provide streaming choices to recapture these clients. The networks stay cautious about pricing with a view to keep away from additional disrupting the pay-TV mannequin and breach contracts with distributors.

The contracts with pay-TV distributors assist assist the billions of {dollars} in charges that the networks pay skilled sports activities groups to air their video games.

Diamond Sports activities, the proprietor of the biggest portfolio of regional sports activities networks, additionally launched streaming providers for a few of its groups earlier than submitting for bankruptcy safety in 2023. In the course of the chapter proceedings, Diamond has exited contracts with some groups to keep away from paying excessive rights charges.

“It has definitely been difficult instances,” mentioned McGrail. “However these are the instances that convey alternative, and you need to actively take into consideration your distribution technique and the way you are going to deal with distribution sooner or later. This addresses the wants of a sure group of people that do not reside within the linear world anymore. We’re making an attempt to be versatile and ensure we’re supporting these followers.”