NHL sees breakthrough in local streaming

By JOHN OURAND
Sports Business Journal Staff writer

Published September 27, 2010 : Page 01

http://www.sportsbusinessjournal.com/article/67082


The NHL believes it has a game-changer in convincing regional sports 
networks to embrace in-market streaming of live games — by extending the 
rights to mobile devices.

NHL Chief Operating Officer John Collins said the league is close to an 
agreement that would have many of its 24 U.S.-based teams launch 
in-market streaming of live games on both broadband and wireless 
platforms, marking a potential sea-change in the way fans can view local 
game telecasts.

Fox Sports Net, which holds the rights to 13 teams, is the one closest 
to agreeing on a deal allowing in-market live streaming to both 
broadband and mobile devices, sources said. Comcast SportsNet, which 
holds the rights to four teams, also is talking to the league.

A deal with either RSN heavyweight instantly would make the NHL’s 
in-market streaming efforts much broader than other leagues’ offerings. 
MLB, for example, has only two teams operating an in-market service; the 
NBA has just one team with concrete plans to stream games in its coming 
season.

RSNs and teams in those leagues have not found an economic model that 
works. After two disappointing tests with NBA teams last year, Eric 
Grilly, Comcast Sports Group’s executive vice president and chief 
digital officer, said he’d have to add mobile rights if Comcast is going 
to roll out the service to additional markets.

“At this point, we see a greater opportunity on mobile, both in terms of 
consumer interest and monetizing those rights,” he said.

That’s where the NHL also sees an opening.

“For us, our willingness to jump ahead and talk about wireless rights 
was a big motivator,” Collins said. “A lot of the RSNs and clubs are 
planning on doing some work around that this year. Some will be in 
broadband. Probably more will be in wireless. We’re still working 
through this.”

Specifically, the two sides are working through how to make the wireless 
options available to RSNs. That’s an area FSN acknowledged represents a 
significant snag in its talks with the NHL.

“We’re not in a rush,” an FSN spokesperson said. “The product we offer 
has to make sense for us and our viewers.”

Plans are still taking shape for the mobile offerings. Any service would 
have to authenticate that the service is available only to cable and 
satellite subscribers.

Grilly spoke of a plan that would stream a package of games, not the 
full schedule, for a set fee to mobile subscribers, who would likely 
have to download an app to access the games.

“We’ve identified how we would do it, in terms of vendor and support and 
model. We’re working on the rights and the terms,” Grilly said. “I’m 
cautiously optimistic that you might see us do something in this 
upcoming season.”

Both RSN groups are testing broadband streaming services this preseason 
that will have no mobile component.

FSN holds the rights to five teams that have plans to stream preseason 
games live this year: the Carolina Hurricanes, Detroit Red Wings, Los 
Angeles Kings, Minnesota Wild and Nashville Predators. Comcast holds the 
rights to one team that plans to stream a preseason game: the San Jose 
Sharks.

In FSN’s case, the targeted games are not available on television. The 
teams picked up all costs associated with producing and streaming the 
games. The stream consisted only of the scoreboard feeds and was 
available on both the team and RSN sites.

While the mobile rights are attracting a significant amount of interest 
by the RSN, the economic model offered by the NHL on broadband streaming 
also has the network’s attention.

Unlike the NBA, which is charging RSNs $3,300 a game to stream broadband 
games live in-market, the NHL isn’t charging anything for its broadband 
service, sources said.

“We understand the significance of these digital rights in the local 
marketplace,” Collins said. “Our intent is not to dilute those rights 
but find a structure where we can give them more flexibility to serve 
their local customer while helping us grow some of the bigger league 
media initiatives that we have. That’s been the balance.”

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George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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