Charter Communications said Monday that it plans to start offering a new, two-tier cable package system that will allow customers to select a cheaper, sports-lite TV option without regional sports channels.
CNBC reports the pivotal move comes as the industry has been contending with more people opting to cut cable in favor of streaming services. That’s weighed heavily on sports channels and has hit regional sports networks, which have which have long provided lucrative fees to leagues and teams, especially hard.
Diamond Sports Group, the owner of the largest regional sports networks portfolio, filed for bankruptcy protection earlier this year. Other networks have been launching direct-to-consumer streaming options that come at price points that won’t upend the longtime lucrative pay-TV model. But they’re often considered expensive for consumers and could turn off potential streaming customers.
Spectrum Select Plus will include the provider’s full slate of sports programming and regional sports networks, while Spectrum Select Signature will exclude certain sports programming for a reduced rate.
The two options will launch on a market-by-market basis throughout the majority of Charter’s U.S. footprint.
Customers who pick the option with certain sports programming will receive direct-to-consumer streaming apps for the local sports networks in their area for free. Charter will also be able to market and sell these regional sports networks app to its broadband-only customers. Major networks like ESPN and FS1 will still be available on Spectrum Select Signature.
“This new model paves the way for a more flexible approach to the outdated packaging model for sports, and it puts the focus where it should be, on the customer,” said Tom Montemagno, Charter’s executive vice president of programming acquisition, in a news release.
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