NBA teams have shaken up the way that fans watch local broadcasts in many markets with more teams ditching the old RSN model for free over-the-air TV. In 2023, the Utah Jazz were one of the first adapters to go all-in on streaming and OTA broadcasts with the launch of Jazz+ DTC streaming service and partnering up with KJZZ-TV.
These moves allowed fans to watch the Utah Jazz free with an antenna, however, the team lost nearly 50% of its revenue after ditching its traditional cable RSN model, according to Jazz owner Ryan Smith in a report by Alex Sherman of CNBC.
Even with the loss of revenue, Smith sees the new model as a success, telling CNBC: “You couldn’t pay me enough money to go back to the old model.”
This is due to the reach the team now has compared to its old pay-TV exclusive RSN model. When the team announced its launch on KJZZ in 2023, Smith stated they could “deliver Utah Jazz games to all 3.3 million plus Utahns.” Today, that reach has nearly doubled, with Smith telling CNBC the team reaches about 6.3 million people through its various broadcast affiliates in the region and neighboring states, in addition to the Jazz+ streaming platform.
“You have to zoom out a little bit beyond just the RSN revenue stream,” Smith told CNBC. “Our team has about seven different revenue streams, and the other six are enhanced by broader distribution of our games. The more people watch, the more people come to games, the more we sell in concessions, the more money we bring in with sponsorships.”
The report states that Jazz+ sold about 31,000 subscriptions so far this season. That figure includes daily, monthly, and annual plans and the team is the only one to sell single-game streams, as others are expected to follow soon.
“We weren’t providing the best experience,” Smith told CNBC. “There were carriage blackouts. You have to start with experience first, and with the streaming product, now we’re reaching younger audiences.”
With a new national media deal beginning next season, the NBA will make around $7 billion per season over the next 11 years. Since the NBA implements revenue sharing from top to bottom, the influx of cash from that deal and other revenue options helps the Jazz offset some of the losses from their local media deal.
Smith told CNBC that Jazz games only reached about 760,000 households under the old RSN model. Now. with a reach nearly 9x that and more younger viewers watching, this short-term loss could become a big-time gain in the future. Additionally, the Jazz produce their games in-house via Smith Entertainment Group (SEG) which boosted the team’s reach from 39% of Utahns to 100% of Utah households.
On average, over 18,000 fans attend the games in person, placing the team in the top 15 in the NBA. This is impressive since on the court, the Jazz are currently experiencing a down year, sitting at 13-41 and 14th in the Western Conference. One can only imagine if the team returns to its competitive ways, even more, fans will tune in to broadcasts, merchandise sales will increase, and revenue will continue to rise on a high note for the Jazz.
Credit: CNBC