Charter is putting its money where its mouth is. Just as the cable operator is launching a sports package with its regional sports networks, it is allowing DirecTV to do the same with Charter’s two Los Angeles-based RSNs.
Charter owns Spectrum SportsNet, which carries Lakers games, and SportsNet LA, which carries Dodgers games. Charter signed a multiyear renewal that ensures DirecTV will continue to carry those channels, a notable development since the satellite distributor did not carry the channels when they first launched.
The deal gives DirecTV a lot more flexibility on how to offer the channels because it significantly lowers the penetration levels the channels need to reach. Historically, distributors had to make RSNs available to 80%-90% of their subscriber base. The company would not say how low those penetration rates are as part of the new deal.
Charter already has said it will launch a direct-to-consumer streaming service around its two Los Angeles-based RSNs. Charter hasn’t determined a launch date or a price for the service but it will be available for free to all multichannel video customers who subscribe to a package that carries the RSNs.
The idea behind the deals is that the RSNs in Los Angeles have a core fan base that will subscribe to those channels wherever distributors happen to put them. Those core fans make up a small percentage of overall subscribers though. And Charter is making a bet that increased flexibility will help stem the cord-cutting trend.
