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Local MLB TV Ratings Shine, Clouds Still Loom

Towards the end of last week, Maury Brown published the local television ratings for the league’s non-Canadian teams at Forbes. For the sport, the news is generally positive. Even as those in some quarters continue to perpetuate the narrative that “baseball is dying,” the data suggest otherwise.

This isn’t to say that Major League Baseball is without its flaws, of course. Greater attention ought to be paid to some areas, particularly to the matter of local youth outreach and accessibility to the sport, in general. As a business, however, baseball is booming. In terms of general popularity, attendance and television ratings suggest that MLB is a major force. An examination of the numbers reveals a series of encouraging trends. For example, we find that (a) many viewers prefer baseball to other available options and (b) winning clubs attract larger audiences than losing ones and (c) a successful Yankees club helps ratings.

Let’s take a look at some of these trends using the data from Brown’s piece, both overall and among teams. Before we begin, a note about ratings versus attendance numbers. Historically, the former respond to recent success more quickly than the latter. Team’s get a big boost after a strong season, with raised expectations for the next year. It takes some planning and expense for fans to actually attend games, though. To watch them on television, meanwhile, requires just a cable subscription and some free time. So expect these figures to be more reactive to success than similar numbers for attendance.

The chart below shows the change in winning percentage for MLB teams from 2016 to 2017 as well as the percentage change in local television ratings.

Eight of the 12 teams to have recorded at least a 20-point improvement in win percentage from last season have seen also experienced a more or less corresponding improvement in television ratings from. Of the four teams not to have benefited from a ratings bump, only the Diamondbacks have actually been good — although the Rays and Angels are each contending for a playoff spot.

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Garber vs. MLB Lawsuit Still Bears Some Fruit for Fans

A little over a year ago, Major League Baseball settled a class-action suit against fans who contended that blackout rules violate antitrust laws. The ramifications for not settling could have been massive, as ending the current blackout rules would prevent regional sports networks (RSNs) from claiming exclusivity over territories to air baseball games. This, in turn, would have prevented them from charging cable providers large amounts of money per subscriber to place them in the basic-cable tier — amounts that cable providers still seem (mostly) willing to pay. Instead of risking that potential financial catastrophe, MLB settled. In the process, they lowered the price of MLB.TV and offered single-team solutions. In a less notable development, the deal also included stipulations regarding in-market streaming of baseball games.

As Nathaniel Grow discussed at the time of the settlement, the lawsuit provided incentives for in-market streaming.

Finally, although not mentioned in the plaintiffs’ attorneys’ statement, Eric Fisher of the Sports Business Journal is reporting that the settlement could also pave the way towards allowing subscribers of RSNs owned by Comcast and DirecTV to stream in-market games via MLB.TV. In particular, the settlement agreement will reportedly specify that MLB cannot raise the price of its MLB.TV service until both Comcast and DirecTV reach an in-market streaming deal with MLB for their RSN subscribers.

For a few reasons, this provision wasn’t a big deal at the time at the time of the settlement. For one, preserving blackouts was probably the most important objective the settlement accomplished for MLB. Lowering the price of MLB.TV by 15% and securing lower fees for viewing just a single club’s games was also a bigger priority. Also, MLB had already agreed at the time to in-market streaming for half of the league’s RSNs — namely, those operated by FOX. For all of last season, half the league plus the Toronto Blue Jays had access to in-market streaming. The final reason the provision wasn’t that big of a deal at the time was due to when it would actually matter — i.e. one year later. Of course, that happens to be now.

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Streaming Local Games at $20 per Month a Reality for Some

For some time now, Major League Baseball teams have depended on major revenues from local regional sports networks (RSNs), entities which themselves have depended on cable providers paying high per-subscriber fees to put those networks on the standard-cable tier. This relationship has long prevented fans from watching their local team without paying for a bulky and often expensive cable subscription. MLB.TV blacks out local games to accommodate the relationship and the revenue that comes with it. While it is not full-scale a la carte, Sling TV’s recent announcement that they will carry FOX Sports RSNs on their new offering for $20 per month is a major win for consumers and a way for MLB to keep their product relevant to those who do not subscribe to traditional cable — frequently a younger demographic that MLB desires.

MLB.TV is a very good product that streams out-of-market games. The announcement last fall that in-market streaming would be available to cable subscribers represented a small step for fans who increasingly consume the game digitally. What was missing, however — and has been missing for years — is a digital option to watch local games without also having to subscribe to a local cable provider. We’re certainly not all the way there, but the newest offering from Sling TV is a big step in the right direction, and a very good compromise for those who do not want to pay for traditional cable.

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