SBD/Issue 195/Sports Media

Memo From MLB Details New In-Market Live Streaming Plan

Selig Outlines In-Market Live
Streaming Model For Teams
MLB "believes it has broken through its self-described 'logjam' for in-market live streaming of games" by developing an economic model that pays MLBAM "half of all related revenue," according to Ourand & Fisher of SPORTSBUSINESS JOURNAL. The terms for local streaming, outlined in a June 19 memo from MLB Commissioner Bud Selig, "will send the other half of the related revenue to local interests, such as the participating team, its regional sports network and the local cable provider." The memo indicated that the "50-50 split between MLBAM and the local interests is 'net of operating costs to participating broadband and wireless service providers.'" While each streaming deal "will be different, in large part because of how the local half of the revenue is divided," Selig said that the "'same relative terms' will be used in all future in-market streaming agreements." However, he "hinted the revenue splits are not cast in stone and could change in two years." Selig in '11 "intends to review the structure to 'determine the fairness of the allocation and the impact upon industry economics.'" Selig wrote in the memo, "I am convinced the revenues are likely to be quite modest and I am convinced it is in the interest of the game to begin an assessment of how our fans will react to this offering." Meanwhile, sources said that a second in-market streaming deal "set to be announced this week involves" the Padres and Cox Communications (SPORTSBUSINESS JOURNAL, 6/29 issue).

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