Phoenix Suns Ditching Cable: The Details

The Phoenix Suns have made a groundbreaking move by becoming the first team in any of the four major American sports leagues to abandon cable television. This decision was announced on April 28, 2023. Starting from the next regular season, all local Suns games will be available for free throughout Arizona via satellite television through broadcaster Gray Television. Additionally, the games will be accessible on a new streaming app developed by live video startup Kiswe.
Why Did They Do It?

The decision to move away from cable was accelerated by the March bankruptcy of the regional broadcaster that held the rights to Suns games. This broadcaster also held rights to about half of the other NBA, MLB, and NHL games. The industry is navigating through the messy bankruptcy of one of its titans, and this move by the Suns could potentially spell the future of sports television.
Who Owns the Suns?

The Suns are currently owned by billionaire Mat Ishbia. He also owns the Phoenix Mercury of the WNBA, and their games will also be aired on free Gray stations and via the streaming offering.
Financial Details

While the financial details of the deal were not disclosed, the agreement with Gray Television for the Phoenix Mercury will last two years, and the Suns' deal is for five years.

The Phoenix Suns' decision to move away from traditional cable broadcasting could have far-reaching implications for both the sports and television industries. Here's a breakdown:
Impact on the Sports Industry:

    Direct-to-Consumer Model: The Suns' move could encourage other teams to consider direct-to-consumer models, bypassing traditional broadcasters. This could give teams more control over their content and potentially higher revenue streams.

    Fan Engagement: Offering games for free via satellite and a dedicated streaming app could increase fan engagement, as it removes the barrier of a cable subscription.

    Sponsorship and Advertising: With a direct-to-consumer model, teams could offer more targeted advertising options, making their platforms more attractive to sponsors.

    Data Collection: A dedicated streaming app would allow teams to collect valuable data on viewer habits, which could be used for marketing and engagement strategies.

    Competitive Landscape: Teams that stick with traditional broadcasting might find themselves at a competitive disadvantage, both in terms of fan engagement and revenue generation.

Impact on the Television Industry:

    Revenue Loss: Cable companies stand to lose significant revenue if more sports teams follow the Suns' lead. Sports broadcasting is one of the last strongholds that keep people subscribed to cable.

    Shift to Streaming: This could accelerate the existing trend of cable TV losing ground to streaming services, forcing traditional broadcasters to adapt or risk becoming obsolete.

    Content Diversification: Cable companies might need to diversify their content offerings to retain subscribers, possibly moving into niche markets or developing original content.

    Partnerships and Collaborations: To mitigate the loss of sports content, cable companies may seek partnerships with streaming services or even consider launching their own.

    Regulatory Scrutiny: As sports teams move to control their broadcasting rights, there could be increased regulatory scrutiny to ensure that this does not result in anti-competitive practices.