MLBAM and the Future of MLB’s Revenues
With the announcement of its partnership with the National Hockey League, and rumors that a potential spinoff of it’s streaming technology arm might be worth $5 billion, Major League Baseball Advanced Media (MLBAM) has moved past being the The Biggest Media Company You’ve Never Heard Of. The base of the deal with the NHL, though relatively small compared to many television rights deals at $100 million per year for six years for control of the NHL’s digital media rights, comes after a whirlwind of activity as well as speculation about MLBAM’s present and its future. MLBAM’s increasing diverse clientele and the partnership with NHL signifies MLB’s digital media arm is prepared to be a player outside of baseball. The move represents part of the slowly changing landscape of consumer consumption, although the potential spin-off could have ramifications the new companies devotion to MLB as well on the next collective bargaining agreement as owners attempt to separate baseball revenue from potentially significant non-baseball revenue.
Close to 15 years ago, MLB owners agreed to invest $1 million each per year for four years to create a digital arm to stay on top of technological advances as the internet. In the years since, the business has created incredible growth for MLB. From mlb.com, online ticketing, MLB AtBat mobile app, and mlb.tv to Pitch f/x and the recent unveiling of Statcast, MLBAM has changed the way fans watch, interact, and appreciate the game. Read the rest of this entry »