New Streaming Service Launched by Pittsburgh Pirates and Penguins for Local Game Coverage
In a move to adapt to the changing media landscape and cater to the growing number of cord-cutters, Pittsburgh’s MLB and NHL teams, the Pirates and Penguins, have launched a direct-to-consumer streaming service called SNP 360. This new service, unveiled by SportsNet Pittsburgh on Monday, will allow fans in the local market to watch Pirates and Penguins games outside of the traditional pay-TV bundle for a monthly subscription fee of $17.99. Additionally, viewers with pay-TV subscriptions will also have access to the app.
The launch of SNP 360 comes at a time when regional sports networks, which have been a crucial part of the professional leagues’ media rights model, are facing challenges due to the shift towards streaming. Last year, SportsNet Pittsburgh underwent a shakeup in ownership when Warner Bros. Discovery exited the regional sports network business. The network is now owned by the Pirates and Penguins, with Fenway Sports Group, the owner of the Boston Red Sox, acquiring a controlling stake in the Penguins in 2021.
The CEO of NESN and SportsNet Pittsburgh, Sean McGrail, expressed their desire to reach fans wherever they are and provide them with options to access the telecasts of their favorite teams. He acknowledged that there are many people who no longer subscribe to a linear TV bundle and wanted to ensure that they could still engage with the Pirates and Penguins and be part of the fan base. SNP 360 was developed quickly over the last six months under NESN’s operations of SportsNet Pittsburgh.
One notable aspect of SNP 360 is its pricing strategy. McGrail emphasized that they are offering the service at an “aggressive price point” that is lower than most other regional sports streaming plans. This approach aims to attract subscribers while the network builds up its content beyond just Pirates and Penguins games. NESN, which broadcasts Red Sox and Bruins games, was the first regional sports network to offer a streaming alternative for its market in 2022 with NESN 360.
The regional sports network business has faced significant challenges as consumers increasingly opt for streaming services instead of traditional pay-TV bundles. To adapt, many networks have started offering their own streaming options to recapture those customers. However, they must be cautious about pricing to avoid disrupting the pay-TV model and breaching contracts with distributors. The contracts with pay-TV distributors are crucial as they contribute to the fees that networks pay to professional sports teams for broadcasting their games.
McGrail acknowledged the challenging times for regional sports networks but also highlighted the opportunities they present. He stressed the importance of actively thinking about distribution strategies and ensuring support for fans who no longer consume content in a linear TV format. By launching SNP 360, SportsNet Pittsburgh aims to be flexible and cater to the needs of fans who have embraced streaming as their preferred way of watching games.
In conclusion, the launch of SNP 360 by the Pirates and Penguins is a significant move towards adapting to the changing media landscape and catering to the growing number of cord-cutters. By offering a direct-to-consumer streaming service, SportsNet Pittsburgh aims to reach fans wherever they are and provide them with options to access the telecasts of their favorite teams. This move reflects the challenges faced by regional sports networks as they navigate the shift towards streaming and seek to retain viewership in an increasingly digital world.
