John Ourand, a seasoned sports business reporter at Puck, dives into the critical interplay between sports and television. He examines how shrinking TV audiences impact sports broadcasting and local networks. The conversation touches on college sports changes with NIL deals reshaping player dynamics. Ourand also explores the challenges facing regional sports networks and the shift from traditional TV to streaming platforms. He discusses sports gambling's growing influence, highlighting how these trends affect the future of sports viewership.
The evolving interdependency between television and sports is critical as both industries adapt to changing viewership patterns and consumer preferences.
NIL deals are reshaping college sports by allowing athletes to monetize their personal brands, significantly affecting recruitment and competitive dynamics among teams.
Deep dives
The Changing Dynamics of Sports and Television
The relationship between sports and television networks is evolving, as both sectors heavily rely on each other for viewership and revenue. Sports events, particularly live broadcasts, are among the last remaining programming that consistently attracts large audiences on traditional TV. However, this dependency is shifting due to the rise of digital platforms, impacting how sports leagues engage with fans and monetize their broadcasts. As viewership patterns change, both television networks and sports organizations must adapt to maintain their relevance and financial success.
March Madness Viewership Trends
Despite concerns about declining excitement and viewership for events like March Madness, recent trends indicate that viewership is actually increasing. A change in how ratings are counted has contributed to this uptick, as more viewers are now recognized in metrics, particularly from out-of-home settings. The discussion highlights the popularity of traditional powerhouses in college basketball, such as Duke and Kentucky, which tend to draw larger audiences compared to underdog teams. Ultimately, the dynamics of college basketball are shifting rapidly due to factors like NIL deals, player transfers, and the structural changes within college sports.
The Impact of NIL on College Sports
The introduction of NIL (name, image, likeness) deals has transformed the landscape of college athletics by allowing athletes to profit from their personal brand. This shift created a Wild West scenario where funding is available to top players, significantly affecting recruiting and competitive balance. As larger schools secure more resources through NIL, historically successful mid-major teams face challenges in maintaining competitive advantage. The podcast suggests that while this new model can financially benefit players, it also raises concerns about fairness and the unpredictable nature of athlete commitments.
The Future of Regional Sports Networks (RSNs)
Regional Sports Networks (RSNs) have historically thrived by being integral to cable packages, but they now face significant challenges amid a shift towards streaming and evolving consumer preferences. As cable numbers decline, sports franchises are reassessing distribution models, with potential for direct consumer streaming becoming the norm. Changes in how networks are packaged and offered indicate that RSN business models are in jeopardy, leading to reduced local media rights money for teams. The podcast emphasizes that while immediate financial stability exists for some leagues, the long-term sustainability of this model is uncertain as audiences demand more flexible viewing options.
Call it symbiosis. Call it co-dependency. However you want to characterize it, there’s zero debate that Big TV and Big Sports are deeply intertwined. So if the TV business is shrinking, what happens to sports?
That’s the main question I had for John Ourand, the longtime sports business reporter who’s now at Puck. But I had lots of related ones, like: Now that (some) college students are getting paid to play sports, how does that affect the TV product itself? What’s happening to the local sports networks that bring you baseball, basketball and hockey? And is the sports betting media boom drying up?