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Does Local Sports Media's Future Lie in the Stars?

Tim Hanlon

Hamish/@el_ham via Unsplash

The NHL’s Dallas Stars' groundbreaking decision to stream all regional games for free on VICTORY+, a new ad-supported platform from Calgary, Alberta-based A Parent Media Co. Inc. (APMC), marks a significant shift in the sports media landscape. This move, set to start with the 2024-25 season, suggests that the future of local sports broadcasting might lie in free, ad-supported streaming services (FAST) rather than traditional free over-the-air (OTA) TV stations.

The free, ad-supported model offers several advantages over traditional OTA broadcasts. For one, it leverages the increasing prevalence of smart devices, allowing fans to access games on smart TVs, tablets, and smartphones. This flexibility caters to a modern audience that expects content on-demand and across multiple devices.

The move by the Stars is part of a broader trend among sports teams to move away from traditionally lucrative regional sports networks (RSNs) - like those owned by Diamond Sports Group's fast-imploding Bally Sports - historically delivered by traditional cable and satellite MVPD providers, and whose linear subscription bases are plummeting. The Stars join other NHL teams, such as the Vegas Golden Knights and Florida Panthers, who have also transitioned to alternative broadcasting solutions in recent years.

APMC's in-house ad-tech solution, Safe Exchange, is charged with delivering a seamless experience for fans while providing robust monetization opportunities for advertisers. The model promises a low-latency feed, programmatic ad serving, content interactivity, and data-driven message targeting, making it a viable and potentially more profitable alternative to traditional ad-supported broadcasting.

Interestingly, the team is not entirely abandoning traditional media. They are exploring the possibility of airing a small package of local games on a linear network of OTA stations for baseline audience reach and promotional value. However, until such agreements are reached, the only way for fans in the Dallas Stars' regional territory to watch local games will be exclusively through the VICTORY+ platform. This shift could serve as a model for other sports teams seeking to maximize their reach and revenue without the constraints of traditional broadcast economics and network/affiliate scheduling preclusions.

The Stars' initiative aligns with the growing trend of direct-to-consumer (DTC) streaming services, which offer greater control over content distribution and audience engagement. By embracing a free, ad-supported model, however, the Dallas Stars are poised to enhance their fan base's experience while setting a precedent for other sports teams to follow.

This innovative approach by the Dallas Stars could very well indicate a shift in how local sports media will operate in the future, potentially making free, ad-supported streaming services the new norm.

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