Our take...
The NBA's intention to offer live streaming of local games represents the most ambitious attempt yet by a major league to utilize online in-market rights. Most organizations have so far resisted adopting this model in order to protect the value of local television rights. However, RSNs' opposition to live streaming may be diminishing, with one, Fox Sports Net, reportedly seeing online viewing as supplemental to the traditional audience. In the current environment, Screen Digest agrees with the view that online audiences for live sports are unlikely to be cannibalistic on the television audience – the viewing experience on a television screen is far preferable to that on a PC if the choice is available.

But as online content becomes more easily accessible through the primary screen (either in the form of internet-connected TVs or broadband-connected set-top boxes) the RSNs may find the online stream directly competing with the traditional channel.

In markets where RSNs hold the exclusive online rights, the RSN will retain the audience whether the viewer streams a match or watches it on traditional television. However, in markets where the live stream is delivered through the club's website (on an exclusive basis or in parallel to a stream on the RSN's own site) directly to the television screen, the web-delivered club offering could significantly cannibalise the RSN's traditional audience. Although this scenario is unlikely to occur in the near future, it is an issue which the RSNs need to consider, given the long-term nature of US sports rights deals.

The move towards live streaming may also cause tensions between the RSNs and Pay TV operators as the latter will lose the in-market exclusivity of their delivery platform. The ability to stream live content is likely to cause a decline in audience for the operators' premium sports television channels over the long term, damaging the relationship between the RSNs and the platform operators as a result.