MLB announced today that it will take over the distribution of local broadcasts for the Reds in 2025. Fans of the club will still be able to watch on television as they have in the past but there will also be a direct-to-consumer streaming option with no blackouts.
Largely due to cord cutting, the regional sports network (RSN) model has been collapsing in recent years. Several clubs have seen their TV deals dropped or expire without being renewed. In some of those cases, Major League Baseball has stepped in to keep things running more or less as before, keeping those teams on TV while also adding the streaming option.
In 2024, MLB handled the broadcasts of the Padres, Diamondbacks and Rockies. Fans of those clubs who watched them on cable could continue to do so, but it was also possible for people without cable subscriptions to simply pay for the ability to stream the games directly without blackouts for $19.99 per month or $99.99 for the year.
Two of those clubs (San Diego and Arizona) were previously with Diamond Sports Group, the owners of the FanDuel Sports networks, which were previously under the Bally Sports brand. DSG filed for bankruptcy in March of 2023 and it was reported earlier today that they will be able to emerge from the bankruptcy process, though with their portfolio reduced to just six teams.
In early October, it was reported that DSG planned to cut ties with all but one club, the Atlanta Braves. They were open to new deals with other clubs, but with the fees renegotiated down to lower levels. MLB announced shortly thereafter that it would be taking over the broadcasts of the Twins, Guardians and Brewers, bringing them up to six clubs for whom they were handling the broadcasting.
The Cardinals, Marlins, Angels, Tigers, and Rays subsequently agreed to new deals with DSG, giving them the rights for six clubs going into 2025. But it was reported earlier this week that the Reds could not come to terms with DSG on a new deal. Today’s announcement revealed that they will go with MLB, so the league is now handling the broadcasts of seven clubs.
For fans, the biggest change is the streaming option. The league has been streaming games for years through MLB.TV, but fans were blacked out from watching clubs in their area as part of those RSN deals. Watching the club on cable was previously the only legal option but streaming is now on the table as well. Details and pricing of the streaming option will surely be forthcoming in the coming weeks and months.
For the club, it’s probably not good news in the short term. The RSN model was a solid source of revenue for a long time, as many people signed up for cable packages even if they didn’t watch baseball. The Reds reportedly got about $60MM annually as part of their deal with DSG. The direct-to-consumer streaming option cuts out the middleman but also requires fans to actively sign up, cutting out the passive part of the cable money.
Perhaps the streaming model will gain momentum over time but the short-term impact has clearly been negative for clubs. The Padres and Twins have already scaled back payroll while the Cardinals and Rangers are planning to do so for the coming season. How the Reds proceed will remain to be seen. RosterResource projects them for a $79MM payroll next year, $21MM below last year’s $100MM figure.