MLB taking over more teams distribution

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Pharmabro
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MLB taking over more teams distribution

Post by Pharmabro » Wed Oct 09, 2024 3:57 am

https://www.mlbtraderumors.com/2024/10/ ... -2025.html

That is added to DBacks, Padres, and Rockies. Texas doesn't have a deal in place and the article said they were exploring their options. The article basically says they stream for 99 on the year or 19.99/ month with no blackouts except national broadcasts. The article also mentions that the previous Diamond model for the Twins had them in a little over 1 million homes vs the new one which puts them in 5M homes. I am kinda wondering how the revenue for these "streaming" only teams works out vs the M's and Root sports. :?:

GL_Storm
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Re: MLB taking over more teams distribution

Post by GL_Storm » Wed Oct 09, 2024 4:48 am

Pharmabro wrote:
Wed Oct 09, 2024 3:57 am
https://www.mlbtraderumors.com/2024/10/ ... -2025.html

That is added to DBacks, Padres, and Rockies. Texas doesn't have a deal in place and the article said they were exploring their options. The article basically says they stream for 99 on the year or 19.99/ month with no blackouts except national broadcasts. The article also mentions that the previous Diamond model for the Twins had them in a little over 1 million homes vs the new one which puts them in 5M homes. I am kinda wondering how the revenue for these "streaming" only teams works out vs the M's and Root sports. :?:
That pricing should be great for customers but streaming model revenues will be a significant hit for most teams. My guess is they'll get something like 25% of peak RSN revenues, maybe less, and I think we'll see some owners decide to cash in over the next few years.

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Donn Beach
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Re: MLB taking over more teams distribution

Post by Donn Beach » Wed Oct 09, 2024 4:56 am

By all accounts, the revenue generated from this model is lower than what the clubs were previously receiving from the cable model, as the latter led to a passive stream of revenue from fans who signed up for cable packages but didn’t watch much or any baseball. The direct-to-consumer model cuts out the middleman but is dependent on active fan interest.
That's the issue there, the income was based on selling broadcasts to costumers that weren't interested in watching baseball, it was a balloon that is in the process of popping. And it coincides with the mariners deciding to pull back on their anticipated spending spree.

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bpj
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Re: MLB taking over more teams distribution

Post by bpj » Wed Oct 09, 2024 8:29 am

GL_Storm wrote:
Wed Oct 09, 2024 4:48 am
Pharmabro wrote:
Wed Oct 09, 2024 3:57 am
https://www.mlbtraderumors.com/2024/10/ ... -2025.html

That is added to DBacks, Padres, and Rockies. Texas doesn't have a deal in place and the article said they were exploring their options. The article basically says they stream for 99 on the year or 19.99/ month with no blackouts except national broadcasts. The article also mentions that the previous Diamond model for the Twins had them in a little over 1 million homes vs the new one which puts them in 5M homes. I am kinda wondering how the revenue for these "streaming" only teams works out vs the M's and Root sports. :?:
That pricing should be great for customers but streaming model revenues will be a significant hit for most teams. My guess is they'll get something like 25% of peak RSN revenues, maybe less, and I think we'll see some owners decide to cash in over the next few years.
I'd be curious about that, because I don't think specialty TV networks get paid much for their broadcasts per customer.

Like if a dish company charges $20/mo. for a sports pack of channels, but there are 10 channels included, there's not much money to spread around there.

And MLB runs commercials on every online game I've ever watched, so I'm assuming the ad revenue will still be factored in. And they won't have the costs of running the network on top of it all (assuming they sell or shut down).

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Donn Beach
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Re: MLB taking over more teams distribution

Post by Donn Beach » Wed Oct 09, 2024 4:51 pm

The deal is when cable first hit they were desperate for content. They had all those channels to put something on. There's old movies, old television shows, reality shows, a weather channel, got to fill them up. Baseball was ideal, three plus hours of original content for six months a year. That's where baseball has been getting it's Monopoly money to play with. But it was based on selling baseball to viewers that weren't that interested in it. That's changing, it's going to be actual baseball fans footing the bill. We will see what that does to revenue

Captain 97
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Re: MLB taking over more teams distribution

Post by Captain 97 » Wed Oct 09, 2024 5:20 pm

Stand alone streaming will be awesome for existing fans but it seems like it could hinder efforts to expand the fan base. Casual fans who watch a few games a year aren't going to subscribe and no one will ever be flipping through channels and just decide to watch a game.

GL_Storm
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Re: MLB taking over more teams distribution

Post by GL_Storm » Wed Oct 09, 2024 10:38 pm

Captain 97 wrote:
Wed Oct 09, 2024 5:20 pm
Stand alone streaming will be awesome for existing fans but it seems like it could hinder efforts to expand the fan base. Casual fans who watch a few games a year aren't going to subscribe and no one will ever be flipping through channels and just decide to watch a game.
Yep. This right here. But what might work is if they go back to broadcasting some number of games per year on free local TV. We'll just have to see what happens I guess.

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