Sports content keeps getting more popular, but broadcasters still aren’t catching up to the digital age. When users look for local events on their streaming services, much of the time, they find themselves without the ability to watch important games. Thankfully, recent developments in Sinclair’s model might mean an exciting opportunity for sports fans and investors alike.
In 2019, Sinclair Broadcast Group Inc. (Ticker: SBGI) acquired Walt Disney Co’s regional sports channels. That was a turning point for the company. As it struggled to grow its traditional streaming revenues, the company formed an exciting new strategy: Direct to consumer marketing.
A New Partnership and a New Plan
Sinclair’s new approach to its local channels brought a few changes for both the company and the local sports industry. First, the Fox Sports name rebranded to Bally Sports in partnership with Bally’s Corp (Ticker: Bally). The partnership and rebranding noted an exciting change reflecting Sinclair’s effort to move sports streaming into the future. Second, Sinclair’s plan brought into focus local sports events to bring local teams to each fan’s TV, even without a cable subscription.
Right now, viewers struggle to find local games on their streaming platforms. And to get Sinclair Broadcast Group’s coverage, they have to sign up for a basic cable deal. In the 21st century, that’s just not an exciting option for users, even if they’re huge sports fans. With the company’s new DTC approach, the struggle to find local games is history.
By bringing local games directly to the consumer, Sinclair is pushing sports broadcasting into the 21st century.
Revenue Streams Built for the Future
Sinclair’s strategy is poised to benefit from solid subscription numbers and deals with teams. Major League Baseball is already supporting the move towards a direct-to-consumer approach. This move represents a big part of Sinclair’s optimistic financial future. Sinclair is expecting to hit $1.58 billion in revenue for the second quarter. The company is poised to stand at the forefront of direct-to-consumer sports broadcasting.
Plus, the company’s new model could be an even bigger hit as local games pick up after the COVID-19 pandemic. Shutdowns made sports fans’ appetite for content even more prominent, and the new opportunity to work in the digital market has Sinclair positioned for impressive growth.
Something for Everyone
Since it holds local channels with rights to a massive list of MLB, NBA, and NHL teams, Sinclair is ready to be a one-stop shop for every sports fan. Here are just a few of the teams Sinclair Broadcast Group is excited to work with:
- New Orleans Pelicans
- Oklahoma City Thunder
- Indiana Pacers
- Kansas City Royals
- Arizona Diamond Backs
- Los Angels Kings
This groundbreaking move to bring local teams onto the widely accessible digital market means more opportunities for fans to enjoy content and more chances for brands to increase Sinclair’s ad revenue.
Ready for the Streaming Age
Streaming has already dominated the TV, film, and gaming markets. With internet stocks exploding in recent years, Sinclair Broadcast Group is tackling a profitable gap in the industry.
Users already rely on digital services for TV, movies, and video games. But without a solid option for local sports streaming, cable subscriptions have been the last resort for many sports fans.
Now, with Sinclair’s innovation, users can bring their favorite local teams into the streaming age.
It’s a new day in sports broadcasting, and Sinclair Broadcast Group is ready to lead the pack.
About Sinclair Broadcast Group, Inc.
Sinclair is a diversified media company and leading provider of local sports and news. The Company owns and/or operates 21 regional sports network brands; owns, operates, or provides services to 185 television stations in 86 markets. Sinclair Broadcast Group is a leading local news provider in the country, owns multiple national networks, and has TV stations affiliated with all the major broadcast networks. Multiple platforms deliver Sinclair Broadcast Group’s content, including over-the-air, multi-channel video program distributors, and digital platforms. The Company regularly uses its website as a critical source of Company information, which can be accessed at www.sbgi.net.
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