On this photo, the Charter Communications logo is displayed on a smartphone screen.
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Change is coming Charter communicationcable TV packages – especially for sports networks.
Cable and broadband company he said Monday that it plans to begin offering a latest two-tier cable bundle system that will allow customers to decide on a cheaper, sports-free television option.
The important thing move comes because the industry battles with an increasing number of people selecting to chop the cord in favor of streaming services. This took a heavy toll on sports channels and hit regional sports networks which have long provided lucrative fees to leagues and teams, especially hard.
Diamond Sports Group, owner of the biggest portfolio of regional sports networks, filed for bankruptcy earlier this yr. Other networks are bringing direct-to-consumer streaming options that come at prices that will not turn the wrong way up the long-running lucrative pay-TV model. Nevertheless, they are sometimes considered expensive for consumers and should deter potential streaming customers.
Charter, which owns two of its own regional sports networks, wants to vary the formula. Starting within the third quarter, the corporate said its Spectrum-branded cable TV business can be relaunched as two latest services.
Spectrum Select Plus will include the provider’s full range of sports programming and regional sports networks, while Spectrum Select Signature will exclude some discounted sports programming.
Each options will be rolled out on a market-by-market basis across most of Charter’s US footprint.
Customers who select the option with certain sports programming will receive free direct-to-consumer streaming apps for local sports networks of their area. Charter will also have the opportunity to market and sell the regional sports network app to its broadband-only customers.
“This latest model paves the way in which for a more flexible approach to the outdated sports packaging model and puts the main focus where it should, on the client,” said Tom Montemagno, Charter’s vice chairman of release.
The corporate noted that historically, sports network contracts have required distributors to pay for content rights and make their programs available to the overwhelming majority of subscribers – typically over 80%. That is true even when lots of these clients never activate the channel.
Pay-TV bills often spread the fees of regional sports networks. National sports networks, e.g DisneyESPN is thought to be one of the expensive for pay TV distributors like Charter and DirecTV.
Charter noted that the brand new two-tier system still gives sports fans what they need and offers non-sports viewers a cheaper option. The corporate also said the model supports sports networks that perform streaming options.
As each a distributor and an owner, Charter is exposed to the issues that sports networks face. The corporate inherited two regional sports networks – Spectrum SportsNet and SportsNet LA, which air Dodges and Lakers games – when it acquired Time Warner Cable in 2016. Charter also plans to launch a streaming alternative for these channels.
As well as, Charter and DirecTV announced a latest distribution deal for these regional sports networks on Monday.
As a part of the deal, Charter agreed to a “much lower penetration threshold” that may allow DirecTV to “higher goal subscribers who want Lakers and Dodgers programming.” It will also allow DirecTV to offer cheaper and more flexible options for patrons not fascinated by sports.
Spectrum Networks CEO Dan Finnerty told wa Press Release earlier Monday that while viewing habits are changing, regular season sports programming stays popular.
“That said, on condition that these customers make up a relatively small percentage of the general video subscriber base, and recognizing the marked increase in direct consumer alternative, the RSN model must evolve to reflect the realities of today’s market,” said Finnerty, senior vice chairman and general manager, Spectrum Networks . “With this agreement, we’re taking a step towards changing the business model in order that customers have more control.”