AT&T SportsNet, once a prominent player in the landscape of regional sports networks (RSNs), has undergone a dramatic transformation in recent years. This article explores the network’s history, its challenges, and the future of local sports broadcasting in its wake.
at&t sportsnet
From Humble Beginnings to Warner Bros. Embrace
AT&T SportsNet originated in 2011, formed by a merger of DirecTV Sports Networks and regional networks previously owned by Liberty Media. It quickly established itself as a major player in the RSN market, carrying broadcasts for local professional and collegiate teams across various regions.
In 2018, a significant shift occurred when AT&T acquired Time Warner. This brought AT&T SportsNet under the umbrella of WarnerMedia, placing it alongside the powerhouse Turner Sports division. The hope was to create a sports broadcasting giant, leveraging the national reach of Turner Sports with the regional focus of AT&T SportsNet.
A Rocky Road: Financial Struggles and Cord-Cutting
However, the dream of a combined sports broadcasting empire faced significant challenges. The RSN model, reliant on cable subscriptions for revenue, began to show cracks. Cord-cutting, the trend of viewers abandoning traditional cable for streaming services, started impacting subscriber numbers. AT&T SportsNet, alongside other RSNs, struggled to adapt to this changing landscape.
Furthermore, the high cost of broadcast rights for professional teams placed a heavy financial burden on the network. Negotiations with cable providers for carriage fees became increasingly contentious. AT&T SportsNet faced blackouts in several markets due to disputes with cable companies, leaving fans frustrated and unable to watch their favorite teams.
The Decision to Exit: Warner Bros. Discovery Pulls the Plug
In 2023, Warner Bros. Discovery, formed from the merger of WarnerMedia and Discovery Inc., made a pivotal decision. The newly formed company announced its intention to exit the RSN business entirely. This marked the end of the AT&T SportsNet brand, with its regional affiliates undergoing a significant transformation.
A Fragmented Future: Networks Rise From the Ashes
The closure of AT&T SportsNet did not leave a void in local sports broadcasting. Instead, it led to a more fragmented landscape. Here’s what happened to the network’s former affiliates:
- SportsNet Pittsburgh: This affiliate, carrying broadcasts for the Pittsburgh Penguins and Pirates, rebranded itself as simply SportsNet Pittsburgh. It remains operational, seeking new carriage deals with cable providers.
- AT&T SportsNet Southwest: The Houston-based network, showcasing the Houston Astros and Rockets, took a different path. The teams themselves acquired the network, forming the Space City Home Network. This move gives the teams more control over their broadcasts and allows them to explore alternative revenue streams beyond traditional cable subscriptions.
AT&T SportsNet Rocky Mountain, unfortunately, did not fare as well. Unable to secure a buyer, the network shut down entirely in October 2023. This left fans in the Denver area without a dedicated regional sports network for their local teams.
The Impact: Fans, Streaming, and the Future of Local Sports
The demise of AT&T SportsNet has significant implications for the future of local sports broadcasting. Here’s how it impacts various stakeholders:
- Fans: The biggest concern lies with the impact on fans. Blackouts and fragmented ownership could make it more difficult for viewers to access their local teams’ games. Finding reliable and affordable ways to watch local sports remains a challenge.
- Streaming Services: Streaming services like Hulu + Live TV and YouTube TV have emerged as potential solutions. However, carriage deals with these services can be complex, and blackout issues persist in some areas.
- The Future: The future of local sports broadcasting remains uncertain. The RSN model faces continued pressure, and alternative solutions are needed. Leagues and teams might explore direct-to-consumer streaming options or partnerships with streaming giants.
Conclusion: Lessons Learned and the Road Ahead
The story of AT&T SportsNet serves as a cautionary tale for the RSN industry. It highlights the challenges of the traditional cable model and the need for adaptation. As cord-cutting continues and technology evolves, the future of local sports broadcasting will require innovation and collaboration between teams, leagues, and streaming services.
