The Dallas Stars are exploring an alternative to regional sports network broadcasting agreements that could revolutionize the way fans are able to consume sports.
Stars president and CEO Brad Alberts confirmed to The Dallas Morning News on Wednesday the team has been working with A Parent Media Co. Inc. (APMC) to create an application where the Stars could stream games direct-to-consumer (DTC). Mike Heika with DallasStars.com first reported the news.
It’s a model other professional sports teams have explored in recent years amid uncertainties with regional sports networks such as Bally Sports Southwest.
But the difference is this would be completely free.
“We have to be prepared,” Alberts said. “It’s all about where is Bally? Do we have an RSN or not? We have to have contingency plans. This certainly is an option if Bally isn’t an option.”
The platform would follow an advertising-based video on demand model (AVOD) where all revenue would be supported through advertisements instead of paid subscriptions. Therefore, a consumer would only need to download an app on a mobile device or smart TV to watch a Stars game.
APMC partnered with Dude Perfect, a sports and comedy group headquartered in Frisco, to create a similar platform that it is replicating for the Stars.
Bally Sports’ future has been uncertain since its parent company, Diamond Sports Group, voluntarily filed for Chapter 11 bankruptcy in March. Bally Sports holds the broadcast rights for 11 teams across the NHL, including the Stars, as well as the Mavericks, Wings and Rangers.
Related:Q&A with commissioner Gary Bettman: NHL is ‘preparing alternatives’ to Bally Sports
Bally has the rights to 70 of the Stars’ 82 regular-season games this season. But the beginning of the 2023-24 season was marked by multiple outages of the Bally Sports+ app during Stars games, raising frustrations among in-market fans.
Fans also have complained that Bally Sports Southwest is not available on the most popular streaming platforms, including YouTube TV, Hulu and Sling TV. The only options for streaming are DirectTV Stream, FuboTV and the Bally Sports+ app.
Plus, the price for in-market fans is higher than out-of-market. Fans in North Texas can subscribe to the Bally Sports+ app to watch Mavericks, Stars and Wings games (Rangers games are a separate cost) for $19.99 per month or $189.99 per season. Out-of-market fans subscribing to NHL Power Play on ESPN+ pay just $10.99 a month or $109.99 per year.
“It’s one of the most complicated business issues I’ve ever worked through,” Alberts said. “Certainly, the challenge is to fix the two problems that we have right now, which is distribution and money to the teams.”
Other NHL teams have explored direct-to-consumer options. Just last week, the Arizona Coyotes announced a new media rights deal with the DTC company Kiswe and Scripps Sports, offering an $11.99 monthly subscription to Coyotes Central where games will be broadcast for the remainder of the NHL season.
The Vegas Golden Knights added a DTC element to their viewing options last year, launching KnightTime+ created by ViewLift in September, which costs $69.99 per season or $6.99 a game.
For both the Coyotes and Golden Knights, Scripps Sports remains a broadcast partner but is expanding to offer DTC options.
While the free model has not been used in the NHL, Alberts said he doesn’t believe the team would lose revenue.
“Nobody wants to lose money,” Alberts said. “We’re dependent on revenues. We’ve got to pay the players. I’m getting more and more comfortable with the economics.”
The plan for now is to stick with Bally but explore other options in case of a collapse. The Stars aren’t the only team doing so, Alberts said.
The NHL and Diamond Sports Group reached an agreement in December to keep local broadcasts for its 11 teams on Bally Sports through the end of the season. Diamond Sports also announced in January a deal to allow for direct-to-consumer streaming through Amazon Prime.
Alberts said he’s still waiting to learn more about the Amazon deal.
For Stars fans who have grown increasingly frustrated with the roadblocks to watching their team play on a nightly basis, an end could be in sight. The solution could make Stars games the most accessible in all of sports.
“Everything’s on the table at this point,” Alberts said. “It comes down to what’s everybody’s risk tolerance? We’re getting comfortable with potentially having to go direct-to-consumer. I think that’s the future.”
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