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Will teams see enough value to dissuade them from starting their own RSNs, as several have already done?
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The launch of the two RSNs highlights the explosion in media rights for sports over the last several years.
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In the Sunset Order, the FCC gave special treatment to cable-affiliated sports programming, often carried on regional sports networks (RSNs).
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For those teams that are not equity investors in RSNs, Fox has been busy the past couple of years tying them up in long term deals.
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The FCC also pointed out that approximately 30 cable-affiliated, national networks and 14 cable-affiliated RSNs are subject to program-access merger conditions adopted in the Comcast-NBCU Order until January 2018.
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Another advantage of teams that have equity stakes in RSNs: the revenue generated by the potential RSN that is not paid to the team would not be subject to revenue-sharing.
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The launch of the two regional sports networks sits against the backdrop of either new RSNs in the Southern California area cropping up, or lucrative rights extensions for the sports teams that are inking them.
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According to Mark Shuken, formerly the President and CEO of DIRECTV Sports Networks, who has taken on the role of Senior VP and General Manager for TWC Sports Regional Networks, he sees these new RSNs as offering more than others have in the past, and therefore, will give customers more cost certainty.
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