MLB.com Revenue Levels the Playing Field
The after project profits are split evenly by all 30 MLB teams. This could very well be a reason that smaller market teams are now able to compete in the free agent market. On the negative side, the revenue gained by MLB.com, XM Satellite Radio & TV contracts also allows smaller market teams like the Pirates and Marlins to “mail it in”. That’s a topic for another day, let’s go back into the gains of MLB.com.
The site is operated and constructed by MLB Advanced Media (MLBAM), an arm financed and owned by the 30 MLB clubs. The CEO of MLBAM, Bob Bowman, shares the following statistics from the past 2007 season;
For the 2008 season MLB.com will offer high definition feeds (HD is available on any LCD monitor with a high speed connection) and increased cellphone content options.
With IT capabilities such as bandwidth delivery becoming cheaper by the day, MLB.com should be able to increase their content quality while maintaining high margin levels. I personally signed up for the season package last season and I will undoubtedly do so again this upcoming season. With the future clearly headed towards multimedia TV setups in living rooms nation wide, MLB.com will become one of the most important revenue streams for the league in 2008 & beyond.