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HomeSportsCNBC Sport: The future of TV is a combination of old and...

CNBC Sport: The future of TV is a combination of old and new

A version of this article first appeared in the CNBC Sport newsletter with Alex Sherman, which brings you the biggest news and exclusive interviews from the worlds of sports business and media. Sign up to receive future editions, straight to your inbox. The most common complaint for anyone who watches television today is how confusing it is to find and access what to watch. This is a symptom of a business reality: the multibillion dollar cable TV industry is dying but not dead, and the replacement concoction of streaming services hasn’t been aggregated to make a simple user experience. The combination is a confounding mishmash. But if you squint, you can start to see a burgeoning solution. In recent weeks, both Comcast and DirecTV have announced so-called skinny bundles of linear networks designed for sports fans. DirecTV plans to roll out several more genre-specific bundles, including packages that cater to entertainment and kids. Meanwhile, more and more pay TV operators are demanding that regional sports networks are tiered – meaning they’re no longer included in a customer’s standard cable bundle. To get access to RSNs, which are typically among the most expensive cable networks for pay TV operators to carry, customers will need to pay an extra monthly fee. Comcast, the largest U.S. pay TV provider, has already instituted these fees in many markets, and they can be pricey. Northern California Xfinity subscribers now have to shell out $20 more a month to watch their favorite teams. The idea here is to lower the cost of linear TV to keep it relevant for younger users. If cable becomes a cost efficient option, perhaps pay TV providers can entice people in their 20s and 30s who have grown up on Netflix and other streaming services that have long been cheaper than cable. While Main Street Sports CEO David Preschlack told me earlier this month he felt this model was probably a fait accompli for RSNs, Altice USA CEO Dennis Mathew says a lot of RSNs are still fighting to stay in the primary bundle. Altice USA is the fourth-largest cable provider in the United States. It’s currently in a carriage dispute with MSG Networks, the home of the NBA’s New York Knicks and the NHL’s New York Rangers, New Jersey Devils, Buffalo Sabres and New York Islanders. Mathew told me he won’t do a deal with MSG Networks under the old rules.

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