Op-Ed: The Decline in Local NBA Ratings Indicates a Shift Towards Streaming
In the world of sports, nothing is more compelling than the story of change, and the NBA's recent local ratings decline is a clear indicator that fans are shifting their viewing habits. This commentary by Dave Dembowski, who serves as the chief revenue officer at Operaive, sheds light on how NBA teams are adapting to these evolving consumer preferences in broadcasting.
While the NBA remains a powerhouse with unprecedented viewership numbers this year, highlighted by the highest opening night ratings in over 15 years for national games, not all aspects of its viewership landscape are flourishing. In fact, local mid-season games have experienced a disheartening 9% drop in viewership. Teams that are struggling on the court are witnessing even steeper declines, contrasting with the slight upticks seen by franchises enjoying successful seasons and star-studded rosters.
However, the heart of the issue isn’t solely about the NBA itself; it's tied to a broader crisis regarding the transition from traditional linear broadcasting to streaming platforms. Many fans have simply stopped tuning in because they have abandoned linear TV altogether. Reports indicate that approximately 2.7 million pay-TV subscribers exited the market between September and March, a significant number that underscores this trend.
The loss in linear viewership could potentially translate into gains for streaming services — but only if these services can effectively draw in dedicated viewers. Presently, the landscape is quite complex. Consumers face a myriad of options, ranging from regional sports networks (RSNs) going digital to free ad-supported streaming TV (FAST) offerings directly from franchises or accessible through apps like FanDuel. Teams and media networks must quickly adapt and secure fan loyalty amidst this transition.
Finding effective strategies to attract paying subscribers while developing the right advertising approach could mean the difference between a lucrative venture and a costly misstep. One promising solution lies in "linear streaming," which retains many beneficial aspects of traditional advertising sales while incorporating enhanced features like dynamic ad delivery and advanced targeting that streaming technology allows.
Revolutionizing Revenue Streams with Linear Streaming
Linear streaming offers numerous advantages for both media companies and sports franchises. It marries the reliability of traditional television with the modern benefits of interactivity, flexibility, and data-driven targeting. This model enables media companies and teams to secure upfront revenue through traditional sales, while also utilizing digital technology to optimize advertising campaigns and effectively allocate spending across various channels to reach their audience.
This new approach empowers advertisers to justify higher investments for premium inventory, while also providing the agility to adjust their campaigns in real time. For instance, an advertiser sponsoring a prominent player may wish to focus their ad placements around key moments during a game. With linear streaming, such arrangements become feasible, allowing them to secure impactful placements while retaining flexibility in execution.
To capitalize on this emerging opportunity, media companies must adopt advanced technology and processes. Traditional linear advertising methods are often too rigid to support the dynamic nature of contemporary ad delivery. Therefore, embracing digital innovations on the backend is crucial for effective targeting and campaign optimization.
Entering a New Era of NBA Growth
Monetization extends beyond merely catering to advertisers' demands. Teams and media organizations must also create engaging experiences that attract and retain fans. While some markets thrive, buoyed by beloved stars and broad national appeal, smaller franchises often struggle to maintain fan interest. Complicated relationships with RSNs are further undermining viewership numbers. Even major cities have faced issues; for example, Chicago lacked coverage on Comcast this past season, while others remain embroiled in negotiations. Simply hoping that RSNs will successfully transition to streaming is insufficient for teams, regardless of market size.
In response to these challenges, teams are exploring innovative solutions like Victory+, a FAST app that establishes direct connections with fans. By leveraging trends such as behind-the-scenes content, social media interactions between games, and growing fanbases centered around individual stars, franchises are becoming increasingly inventive in how they engage audiences and what it means to build a loyal following beyond just game days.
With platforms like Victory+ and partnerships with brands like FanDuel, which is accessible via Amazon Prime Video, teams now have fresh distribution avenues to enhance viewership. These partners are not only more adaptable when it comes to digital advertising, but also provide greater flexibility in delivering novel content, creating valuable opportunities to forge new connections with fans as they embrace streaming.
Building Stronger Connections with Fans and Brands
As we approach 2026, every NBA franchise will likely be experimenting with various strategies, pitting subscription models against advertising models, FAST partnerships against larger linear/streaming hybrid deals, and much more. This marks a transformative time in the industry. While linear television continues to lose audiences, streaming is on the rise — yet this shift is not simply a direct exchange.
Franchises and media organizations cannot assume they will replicate the same audience numbers that linear broadcasting enjoyed for decades. Today, fans have unprecedented choices and must perceive genuine value in the content and viewing experience to commit to a specific FAST app or invest in a season pass. Ultimately, where audiences gravitate, brands will follow. The platforms that successfully cultivate the most engaged and loyal viewers will stand the best chance of securing advertising dollars.
