Sinclair Broadcast inked a new distribution deal with YouTube TV that is adding carriage of four channels, including The Tennis Channel, a related FAST offering, and two digital broadcast networks.
Financial terms were not disclosed.
Along with the Tennis Channel, YouTube TV users will have access to T2 – which is the network’s first free ad-supported streaming TV (FAST) channel. Both join YouTube TV on June 1 to coincide with the French Open. In addition, two multicast networks (or diginets), Charge! and TBD are slated to launch on the virtual MVPD at the beginning of June. The deal doesn’t include Bally Sports RSNs but does extend YouTube’s carriage of Sinclair’s CBS and MyNetworkTV affiliated stations. The CBS affiliate board in March endorsed an agreement forged by Paramount Global for virtual MVPDs which saw several station owners return their local news affiliates to competing vMPVD Fubo.
On the diginet front the agreement also renews carriage of Comet, a network focused on sci-fi and fantasy – meaning all three of Sinclair’s multicast networks are now part of YouTube TV’s lineup. Charge! features high-profile procedural dramas while TBD offers a slate of reality-based series.
Sinclair has been growing its reach of digital broadcast networks. The broadcaster said in Q3 Comet, Charge! and TBD grew faster than all other diginets, across all day parts in the quarter. In February Sinclair announced new affiliate agreements for the three networks, with expanded distribution that’s expected to add 2.4 million households to Sinclair’s OTA footprint by the end of the second quarter this year, after adding 17 million throughout 2022.
“We are pleased to reach an agreement that brings Tennis Channel, T2 and all three of our Emerging Networks to YouTube TV, a valued partner of ours,” said Will Bell, SVP, head of Distribution & Network Relations for Sinclair, in a statement. “As the media landscape continues to evolve, our goal remains the same – to bring our unrivaled content to people wherever they want to experience it. With Roland-Garros kicking-off May 28th, the timing is perfect for YouTube TV customers.”
It’s the latest content addition for YouTube TV, which as of last July already had more than 5 million users and could be set to attract a new cohort of viewers with its exclusive rights to NFL Sunday Ticket programming.
Just this week YouTube TV disclosed pricing for access to its out-of-market Sunday Ticket package, which is heavily discounted for subscribers of the vMVPD. Prices start at $249 for YouTube TV subscribers that sign up by June 6, compared to $349 for non-YouTube TV viewers that sign up early. After the promo period the base price for YouTube TV subs is $349, compared to $449 for non-YouTube TV subs. YouTube TV subs also get a $100 discount on a RedZone bundle compared to non-subscribers, starting at $289 for subscribers who sign up by the June deadline.
TVREV analyst John Cassillo in a Tuesday blog said that while pricing looks steep on paper it’s “mostly a savvy scheme devised to boost YouTube TV sign-ups.”
“If you really want Sunday Ticket, you’re going to pay for it, whatever the price. Realistically, this is just like any other late-adopter tax, and that’s where YouTube really makes money here. Additionally, they’ll make a ton on new YouTube TV subscriptions,” wrote Cassillo.
The analyst pointed out that even on packages that are cheaper for consumers if they subscribe by June 6, YouTube will still generate $63 per month on top for the first 10 months and then $73 per month after if subscribers stick around.
“This will be especially enticing for DirecTV Stream and Fubo audiences, who are now being given a better competitive option to subscribe to YouTube TV and get the Sunday Ticket service they were potentially subscribed to those services for (Fubo had RedZone),” wrote Cassillo.
As for existing subscribers, the analyst said YouTube’s move is more about retention as many will care about Sunday Ticket “and now you’re giving them another clear reason to stick with you – while also making additional money off them you didn’t previously.”