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The problem stems from continued cord-cutting as fewer customers are paying for cable bundles these days, opting instead to use streaming services. That leads to decreased revenue from ad sales and cable contracts, creating situations where RSNs are paying teams more for rights fees than they are able to make back from those revenue streams.
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The report goes on to state that MLB’s plan is to take over the local TV broadcasts of those teams, as well as streaming them for free in those local markets as they negotiate lower deals with cable companies. It’s not yet clear if fans in blacked-out markets would be able to access those streams in the short-term. If deals are reached, the league plans to offer over-the-top service for around $15 per month. As Kosman notes, that’s lower than some other streaming deals, with the Red Sox charging $29.99 per month. The league also already tried to acquire the rights to all 14 teams currently controlled by Diamond but were turned down. Those clubs are the Angels, Braves, Brewers, Cardinals, Diamondbacks, Guardians, Marlins, Padres, Rangers, Rays, Reds, Royals, Tigers, and Twins.