The Utah Jazz were preparing for an exit from the Regional Sports Network (RSN) model as early as summer 2022, and the team’s exit from the now-shuttered AT&T SportsNet Rocky Mountain last year surprised no one.
Last spring, the team said it is exploring a hybrid linear/direct-to-consumer (DTC) solution to broadcast its games during the 2023-24 season. This 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 comes to a close, the model has worked well for the team. Caroline Klein, Jazz communications director, said NextTV that Jazz+ recorded 10,000 subscriptions in its first month and 20,000 in total since its launch. The service costs $15.50 per month or $125.50 for the season, with single games also available for $5 each. Klein said the team sold an additional 1,700 subscriptions for the $5 single game deal.
Klein admitted that the team lost revenue by moving out of the RSN model, but that “we’re betting on ourselves”, in part through owning its ad inventory and produce your own games.
“When we began the open negotiation process, we knew we were not going to renew our contract 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 the current RSN market,” Klein said.
One of six NBA teams to produce its own games, the Jazz approached its hybrid DTC broadcast/local TV model with clear eyes, understanding, Klein added, that the initial revenues would not match those of the RSN distribution, at least not immediately.
“We’ve definitely taken a hit in terms of revenue,” she said. “But we bet on ourselves. After all, we own all of our advertising inventory… We knew it wasn’t a silver bullet. It’s not apples to apples.
Additionally, the team’s viewership increased 53% after AT&T SportsNet Rocky Mountain moved to KJZZ. By parting ways with the RSN and moving to OTA, the Jazz have significantly increased their overall reach, almost doubled their potential audience in Utah alone.
The positive vibes from the inaugural season on Jazz+ and KJZZ will have to carry into next season (and beyond) before declaring whether or not the new model is a long-term solution. The Jazz are struggling this season, sitting in 12th place in the Western Conference, and further on-court struggles will likely turn away more fans, even if it’s easier for them to watch. If, after this first increase, subscriptions and local audiences decrease next year, where will Jazz be?
[NextTV]
