The Utah Jazz were preparing for an exit from the regional sports network (RSN) model as early as the summer of 2022, and the team’s exit from the now-shuttered AT&T SportsNet Rocky Mountain last year came as a surprise to no one.
Last spring, the team said they were looking into a hybrid linear/direct-to-consumer (DTC) to air their games in the 2023-24 season. That eventually led to a deal with over-the-air (OTA) network KJZZ and a DTC service available in the local market, dubbed Jazz+.
As the 2023-24 season winds down, the model has worked well for the team. Jazz chief communications officer Caroline Klein told NextTV that Jazz+ netted 10,000 subscriptions in its first month and 20,000 overall since its launch. The service costs $15.50 a month or $125.50 for the season, with single games also available for $5 each. Klein said the team has sold an additional 1,700 subscriptions for the $5 single-game offering.
Klein admitted the team lost revenue exiting the RSN model, but that “we’re betting on ourselves,” thanks in part to owning its ad inventory and producing its own games.
“When we entered the open negotiation process, we knew we were not going to renew with SportsNet,” Klein said. “Our contract was going to end with [at the end of the 2022-23 season] … It took us 11 months to figure it out, but we couldn’t get what we wanted with current RSN market,” Klein said.
One of only six NBA teams to produce its own games, the Jazz approached its hybrid broadcast/DTC local TV model with clear eyes, understanding, Klein added, that initial revenue would not match that from RSN distribution, at least not immediately.
“We definitely took a hit with revenue,“ she said, “But we’re betting on ourselves. We own all of our ad inventory, after all … We knew this was not a quick fix. It’s not apples to apples.”
Additionally, the team’s audience has increased by 53 percent after the switch from AT&T SportsNet Rocky Mountain to KJZZ. In parting with the RSN and making the switch to OTA, the Jazz vastly increased their overall reach, nearly doubling their potential audience in Utah alone.
The positive vibes for the inaugural season on Jazz+ and KJZZ will need to carry on through next season (and beyond) before we declare whether or not the new model is a long-term solution. The Jazz are struggling this season, sitting 12th in the Western Conference, and further struggles on the court will likely push more fans away—no matter how much easier it is for them to watch. If, after this initial spike, subscriptions and local viewership decline next year, where will that leave the Jazz?
[NextTV]
