In a COVID-19 world, should sports TV platforms be worried about cord-cutting -- even when live sports eventually comes back to traditional
pay TV platforms?In recent weeks, louder complaints have come from pay TV sports consumers, given the lack of live, local sports — specifically Major League Baseball and NBA basketball.
And when it comes to regional sports networks, that can run an extra $15 or so a month. Many are complaining they should be charged less. While car insurance companies have been
offering rebates to consumers, due to the lack of driving, the same can’t be said of pay TV providers when it comes the lack of live sports program viewingIn its recent earnings call,
Sinclair Broadcast Group -- now the owner/operator of 22 regional sports networks -- noted it has some protection: “Sports rights agreements entered between our RSNs and the professional sports
teams typically include a minimum game delivery obligation. ”advertisementadvertisementSo if Sinclair doesn’t get any games to air, it doesn’t have to pay anything. At the same time, there is a
downside: “If we cannot deliver the minimum number of games under the agreements, there is a mechanism for [pay TV] distributors to recoup a portion of their carrier fees.
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