DirecTV MySports Could Mark the Beginning of the Sports Streaming Era

DirecTV is now offering MySports, a streaming service for “hardcore” sports fans. The service provides access to over 40 live channels, including local affiliates. More notably, it doesn’t require a satellite TV subscription.

Cord-cutting has absolutely ravaged the cable and satellite television markets. Every year, a new batch of consumers transition to the fractured, semi-à la carte world of streaming—a clear threat to businesses like DirecTV. But some consumers, mainly sports fans, are loyal to their cable or satellite provider. And this isn’t necessarily by choice. The sports streaming landscape is just a mess. Individual sports channels, and even individual games, are spread across several different services. Live services like YouTube TV offer a more all-in-one cable-like experience, but they’re excessively overpriced. A YouTube TV subscription with the Spots Plus add-on, for example, costs $94 a month.

Corporations that own sports networks, like Disney and WBD, are responsible for this predicament. They’ve always treated sports channels as a sort-of honeypot. If you want to add sports channels to your cable plan, you’re forced to buy an overpriced bundle that includes National Geographic and other non-sports content. Cable and satellite companies regularly criticize this strategy, as it makes it harder to compete with streaming. That said, streaming services also feel the sting of the sports bundling racket.

The big sports corporations—Disney, Fox Corp, WBD—recently announced a joint streaming service called Venu Sports. And from a sports fan’s perspective, Venu seemed like an exciting prospect. It would provide access to most major sports channels, such as ABC, ESPN, FOX, and TNT, for $43 a month. But competitors were quick to point out that this joint venture was deeply anticompetitive. Cable and satellite companies were incapable of offering a similar sports package for such a low price, as they had always been forced to bundle sports channels with non-sports content. The loudest voice in the room, Fubo, argued that sports corporations were disrupting a market that they had intentionally stifled.

Disney avoided a messy court case by giving its Hulu+ Live TV service to Fubo, acquiring a 70% share of the company, and canceling Venu Sports. It also appears to be taking a more graceful stance in regard to sports licensing. DirecTV’s new MySports platform includes ESPN and ABC but is not inundated by National Geographic or other unrelated Disney properties. Interestingly, local CBS affiliates are the only major omission from MySports’ catalog, though DirecTV says it’s working to get cooperation Paramount Global, the owner of CBS.

Venu is off the table, and lawmakers have voiced their concern over anticompetitive practices in the sports media market. As a result, corporations like Disney may be more inclined to act in good faith at the negotiating table. This may prove to be a lifeline for legacy television companies like DirecTV, which may now build “skinny” sports streaming bundles at reasonable prices. More importantly, general-purpose services like YouTube TV may be able to pursue sports content without falling into unfavorable, price-hike-inducing contracts. However, carriage disputes will probably remain a major problem for all television providers in the sports market.

Spots fans in select markets can sign up for the MySports beta today. Pricing starts at $70 a month, though you can secure a $20 discount on your first three months if you sign up before February 28th.

Source: DirecTV via Variety