ROOT Sports Streaming Service

[tehmc]

What's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.

ROOT is already available on FUBO

Yes, they are. I'm saying we may see ROOT on other, similar services as well, like YouTube TV and HULU TV.

I see what happened, I read it as FUBO could bring ROOT to their services (as in it wasn't already there) not that other services could bring ROOT similar to what FUBO has already one.

[D-train]

[D-train]

Here is a wild idea. Ban RSNs and Ban MLB.TV blackouts.

Every MLB team gets a share of every subscriber in their area based on zip codes entered in the payment section.

[Captain 97]

If the revenue is the same I doubt the margin would change much. They are already paying for all the production with Root.

Netflix has gross margin of about 39%, which they've achieved through phenomenal growth. Probably, you should assume that the best case scenario for something like ROOT would be a lot less than that, going on it's own as a streaming service. Frankly, I don't think it's even realistic. It would cost hundreds of millions in start up capital just to get off the ground. What's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.

Netflix is a totally different animal because they are creating and producing massive amounts of content on a continual basis. The M's Content and production is already being done with a dialed in format that doesn't really take much to maintain. Its simply a matter of pivoting the distribution method.

[GL_Storm]

If the revenue is the same I doubt the margin would change much. They are already paying for all the production with Root.

Netflix has gross margin of about 39%, which they've achieved through phenomenal growth. Probably, you should assume that the best case scenario for something like ROOT would be a lot less than that, going on it's own as a streaming service. Frankly, I don't think it's even realistic. It would cost hundreds of millions in start up capital just to get off the ground. What's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.

Netflix is a totally different animal because they are creating and producing massive amounts of content on a continual basis. The M's Content and production is already being done with a dialed in format that doesn't really take much to maintain. Its simply a matter of pivoting the distribution method.

Okay, but even with that assumption, the numbers you quoted don't account for costs, at all. I do think those numbers are reasonable by the way, but that's still topline revenue. And the costs would be significant. It isn't all gravy.