RSNs Posted Across the Board Revenue Gains in '09

Business is booming at the nation’s regional sports networks, as total revenue for 2009 increased 6.6 percent to $4.6 billion versus the year-ago period.Per SNL Kagan data, all 36 RSNs last year posted revenue gains, a development that goes a long way toward illustrating the advantages of the dual revenue stream. Even when the economy is circling the drain, affiliate fees are a layup, a monetary intentional walk.In keeping with their New York bona fides, the biggest earners in 2009 were YES Network, which pulled in $417.1 million in revenue, up 4.4 percent from the previous year’s $399.6 million, and MSG Network, which raked in $308.8 million, an improvement of 11.6 percent.YES Network is carried by Time Warner Cable and Cablevision in its home DMA, and is nested in a premium sports tier in other national markets by carriers like Mediacom, Bright House Networks and DirecTV. Out-of-market YES viewers get access to the RSN’s entire programming lineup––minus New York Yankees (MLB) and New Jersey Nets (NBA) games.Analysts put YES Net’s out-of-market carriage fee at around $2.50 per sub per month.Home to the New York Knicks (NBA) and Rangers (NHL), MSG is carried in NYC by former corporate parent Cablevision and Time Warner Cable. The RSN also has carriage in Comcast systems and with satellite providers DirecTV and DISH Network.Per estimates, MSG commands a sub fee of nearly $2 per month.Relative newcomer SportsNet NY took in $254.6 million in total revenue, an increase of 2 percent from 2008’s $249.7 million. The home of the New York Mets and the Big East Conference, SNY charges around $1.95 per sub per month for its feed.Excluding Fox Sports Tennessee and Fox Sports Carolinas, which were spun out from Fox Sports South in 2008, the greatest revenue gains on a percentile basis were enjoyed by Comcast SportsNet Washington (up 19.7 percent to $128 million) and Comcast SportsNet New England (up 15.1 percent to $90.5 million). While any growth was welcome in last year’s recession-wracked environment, Kagan senior analyst Derek Baine notes that last year’s gains were relatively muted in comparison to previous years. In 2008, RSN revenue grew 10.5 percent; the previous year, the sports nets boosted income by 14 percent.“The slower growth was attributable to the downturn in the advertising market and the fact that most RSNs are fully distributed and aren’t growing their subscriber bases much, if at all,” Baine said. “Still, the results were solid, given the dramatic revenue downturns seen in many other media sectors.”

Convergent TV

RSNs Posted Across the Board Revenue Gains in '09

Anthony Crupi

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Anthony Crupi