Chicago Sports Network has finally announced its direct-to-consumer app, and starting Friday, the network will provide Chicago Blackhawks, Bulls and White Sox fans another option to watch their teams.
CHSN's launch hasn't gone as most fans hoped. From struggles with antennas to a lack of an agreement with Comcast, fans have loudly expressed their frustrations.
To address the frustrations, the lack of carriage on Comcast and other providers, why the network isn't free and the introduction of the new app, CHSN president Jason Coyle spoke with The Athletic on Thursday.
Comcast declined to comment on the negotiations when contacted by The Athletic this week. Last month, Comcast told The Athletic, "We've had discussions with them and are not going to comment on specifics."
(Note: This interview has been lightly edited for clarity and length.)
I know a lot of people have been critical of the network's rollout. From your perspective, how would you consider it? Have there been any surprises? What's been your overall view of these first six weeks?
There are different segments. First, in terms of rolling out a network in five months, from zero name, zero logo, zero graphics, zero trucks, zero personnel to launch on time with a beautiful product, I'm very, very proud of the team. It's not blowing smoke. I'm really excited about the way the games are being produced, really excited about the studio programming, really excited about the 24-hour network. And I'm not trying to challenge, but I haven't heard of anyone doing it in five months, and that is because we were prepared and we have an amazing team. That part has been the best rollout I've ever seen under the circumstances.
The app, we were specifically holding. We didn't want to rush it at first because we were not trying to encourage cord-cutting, as we've mentioned before, and we're trying to align it with our paid distribution deals. We are aligned with Direct and Fubo and Astound. But it was just time to go because the Comcast business is where it is.
As to the overall clunkiness of the rollout, it's really just Comcast. Really, because YouTube TV and Hulu have just gotten out of the business of doing those deals. So then you look at these deals that we just talked about and you look at the content going from scratch to really, really good in a short period of time. And we're still adding new rights deals. We're bringing on new content. I'm really, really excited about the network.
Phase 1 of the app, I think you're going to think is good. It is good. ... The really exciting part of the business model will show itself when we bring in more e-commerce, interactivity, social features, awards eco-system thanking our fans for watching, putting prizes in their hands, creating experiences for them. ... In terms of everything under our control, it was letter-perfect engineering. ... The folks here did an amazing job.
Is there a specific reason why there's not carriage with Comcast yet?
I don't know the answer. We were partners with them for 20 years. Never had a fight, never had an argument. Comcast Sports Chicago and NBC Sports Chicago were legends. All the partners were happy. We didn't leave them jilted. We didn't walk out on them. Just as we looked ahead and said, "Hey, what's a five-year deal look like together when you're talking about a cable-only business model and Diamond in bankruptcy?" It didn't pencil.
There was no animosity that we moved forward independently. There was no walkaway or fight. So on top of it, we've gotten all these deals done with the DirecTVs of the world and Fubos. We've opened (the Comcast negotiations) with significant decreases (in rates), not even flat. We've given them packaging options across Basic, across Ultimate, blend. So given all that and especially our relationship and our very open mind to the financial outcome, yeah, I'm surprised. I've yet to find anyone who has any idea why they don't want their customers to watch this. I have no idea.
Have negotiations ceased? Is Comcast still talking with CHSN?
It's hard to call them negotiations. We are talking and we continue to bring them proposals. We're in contact as we have been for 20 years and then every week from the summer. They definitely haven't ceased. We are trying. But that's why DTC (direct-to-consumer), we were going to wait and have it go after Comcast because, again, we're not trying to take their customers and move them to cord-cutters. We don't want that. We're trying to align it with the best interest of our partnership, but fans want it and Comcast customers need a way to watch, and this is why we're rolling it out now
Is Comcast just not providing a reason why they're not agreeing to a deal or providing a counter-proposal? It seems odd to be able to propose something, but their side not accepting anything or countering with a proposal.
Yeah, the first even reason that we've heard was that Tribune article a couple weeks ago where (Comcast) didn't want to pay for something that was free on the antenna. That's silly. They've got so many channels on there that are free to air and the broadcast channels here. We're 13-for-13 on anyone who is engaging and is interested in bringing this network to their customers. We've gotten every single deal done. So, I don't know, especially with the benefit of that relationship and the number of fans who are their customers. I don't have an explanation. I don't know their motivation.
One of my questions from the start has been if CHSN is an over-the-air network, is there a reason why it couldn't be a free must-carry station for Comcast or other cable providers?
Well, must-carry gets complicated because there's no economics in must-carry. There's an oddity to it, and it starts to get into regulations that dictate what we do and we want to have flexibility.
What I will say is we're specifically a digi-net (meaning CHSN is on 62.3 and 62.3 subchannels over the air in the Chicago area), because, again, we were just there providing the network to those people who were already watching it on an antenna. It's kind of intentionally wonky. ... It's intentionally non-threatening to Comcast. It's intentionally non-threatening to DirecTV. It's just serving that niche of audience of who prefers to watch it that way. That's why. So, that doesn't really align with must carry, and must carry is so wonky and subject to reframing from the feds. It's just something that as we try to reset this model, make sure we can be available everywhere, we want to make sure to stay away from it.
Are you hopeful Comcast ever happens? Where is your optimism level now?
I'm extremely hopeful. I'm extremely hopeful. I think we're putting a great network out there. I know we are. The games look really, really good. The feedback from people who can watch has been so encouraging. The studio shows look really good. We're bringing move content on every day. Yeah, I'm really hopeful. I have no reason to believe we won't eventually settle this, but I also don't have a specific reason to think it's happening at any particular time. I do not know their motivation, but they're not engaged.
I know some people are holding out hope for Hulu and YouTube TV. You make it sound like it's probably not going to happen.
I don't think so because just over the course of the last couple years they've just dropped them. There's numerous sites out there, the best digital platforms for regional sports networks are Fubo and DirecTV Stream. That's by far.
YouTube TV is just leaning into national for the NFL. We have a really nice conversation/relationship there. They're not doing regional deals, and that's been proven. That's clear in their lineup. The same thing with Hulu. So far, we're looking at a Google and we're looking at a Disney kind of plugging and playing with their algorithms and they've decided the regional sports carriage is not something they want to pursue right now. So it has nothing to do with Chicago.
As Diamond comes out of bankruptcy, I guess today they were approved, that could start to open things up, because now they at least have an understanding, all right, we can negotiate with someone other than a receiver and these things aren't locked in bankruptcy with a completely uncertain future.
Perhaps that gives them a clear national picture of the regional rights set, but that's speculation. I'm just trying to answer your question in the most complete way I can. I mean, they're out of the business until further notice. And that's why DTC is a such a good time for that because YouTube customers really index with direct to consumer. They're used to doing it. It's an easy add-on. Same with Hulu.
So you don't have to drop those two, just add us, and you can do it on a month-to-month basis. When those deals get done, if they just prefer to drop the DTC then, that will be perfect. But in the meantime, this will be the way for those fans to watch.
With the DTC, will viewers be able to pause, fast forward and rewind? Also, will game replays be available?
So the games, that's a yes, there will be the pause, the rewind. We are going to make the replays available, too. It may take a couple days to get those files up and going. But that's the plan - full-game replays and DVR functionality for the games.
It sounds like subscribers will have access to a CHSN app on their TVs in the near future?
They're done. Roku and Amazon Fire, it just takes a little while to get through those app stores and kind of finalize (everything). But the apps are done and ready to go and they're really good. So, beautiful connected TV experience. It's going to be exciting. It's going to be great. Look, we wanted to coordinate this with Comcast because, again, we're not trying to get people to cut the cord, but just given the fact they're not engaged, we just decided to press it out there so people have the option of watching. No matter where they prefer to get their television from, they can watch us, we are now available.
With the pricing of the app subscriptions, I know there have been a lot of questions. From what I understand, DirecTV and others have a say in the number so it doesn't price them out. Is that correct?
You're 100 percent right. When you look around the country market to market and you see $19.99, and in this market, you see Marquee at $19.99, these deals are done so that we don't basically compete against our own paid distribution partners. So contractually and from a partnership standpoint, we set them to really show our respect to DirecTV and eventually to Comcast where we're not competing against them. We're not trying to take their customers. We're just making these available at a price point that still preserves the business relationship with them and gives fans just another option.