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SBJ/May 12-18, 2014/Media
ESPN takes over out-of-market package
Published May 12, 2014, Page 29
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Neither ESPN nor MLS executives last week knew how the package in its new form will be presented or what it will be named, but what was certain is that operation of the package will shift from MLS to ESPN.
A source said ESPN is looking at several potential business models, including potentially making the package available as an over-the-top subscription product.
Media writer John Ourand on MLS getting five times what it previously made from TV rights and the unique relationship between ESPN and Fox as they worked to shut out NBC
“We weren’t sure we wanted to do that,” Stevenson said. “But the more we spoke with them and understood [ESPN’s top digital executive] John Kosner’s vision for this, we thought it was a great idea.”
Neither MLS executives nor cable operators would discuss how many subscribers the current out-of-market package, called Direct Kick, has been getting, but distribution sources said its take-up rate pales in comparison to other leagues. MLS currently operates MLS Direct Kick and sells it to distributors. It retails for $79 and carries up to 245 games.
Some of that blame comes down to scheduling. In the past few years, MLS games were scattered across the week.
ESPN executives believe the league’s new schedule, which puts most games on Saturdays, will help support the out-of-market package.
“MLS has a young, male, diverse demographic,” said Scott Guglielmino, ESPN’s senior vice president of programming. “Because the majority of those out-of-market matches — or, local matches — are going to happen on Saturdays, we felt like that was attractive for us to try and secure those rights.”