MLB streaming network for in-market games?

[imref]

https://nypost.com/2021/10/17/mlb-in-talks-to-launch-nationwide-streaming-service-for-home-games/

[wj73]

Very interesting if it goes through.

[nfotiu]

Thanks.  Very interesting story.  There are so many complicating factors that stand in the way of doing this right.  A price point of $10-$20 or more per month will be attractive to people holding on to their bundles just for their RSN, and would be somewhat attractive to fans who don't have a bundle.   It's not low enough to bring in the mass adoption needed to actually be a significant source of revenue thought, and really prices out casual fans and potential new fans.   Games easily available for free, cheap, or on something they already pay for is a huge part of marketing a sport.   

They probably see a high price/month as the only way to keep the RSNs somewhat happy though.   It gives some leverage when negotiating with Cable or Sat that they can include their RSN for "free" when the perceived value is $20/month standalone.   

MLB needs to do something though or they will lose fans forever.  It's hard to quit that $2-3 billion/year they collectively make in RSN deals though and its hard to envision in-market streaming that doesn't cost them a big chunk of those billions, but they may just have to accept it in the interest of long term health of the league.   It could make for a testy relationship with the union too if they accept a billion/year loss of RSN money to launch a streaming service.   The best move might be to let Sinclair's sports channels go bankrupt and force everyone's hands.   Although, I don't know how they can have a streaming service without RSNs producing the games.   

There's a potential pitfall at every turn here and it's going to drastically re-shape the business of MLB, NHL and NBA in the next couple years.

[imref]

FWIW, we still pay for a TV package as part of our FiOS subscription, largely for easy access to local channels without an antenna, and for the RSNs, and because it's pretty cheap overall. I pay about $190 a month for gig Internet, phone, and TV.  That includes two satellite boxes with the premium DVR package.

With the MASN app, I can now stream Nats games anywhere.  This new offering wouldn't get me to drop my TV package because then I'd need to sign up for Hulu to watch NBC Sports (at $64.99 a month).

[Natsinpwc]

We still have our xfinity package in NOVA which put son uses as he is at our house.  About $170 for internet and cable tv and phone (which we don’t use). Not terrible but the deal we had runs out soon. The irksome thing is that we can watch the Caps and Wizards down here in Florida with xfinity but not the Nats. It’s just dumb. Would be nice if MLB could do something like what the NHL is doing with ESPN+. $6.99 a month for almost all out of market games.

[nfotiu]

I pay $79 for fios Gigabit and $75 for Directv stream which includes HBO, MASN, NBC sports and all the other channels.   I'm not sure if I'd switch right away, but it would be nice to know that I'm not tied to DTV just for MASN going forward.

It sounds like the plan (pipe dream?) is to get all the RSNs on this service.  Maybe you could get your local NBA/NHL/MLB team for $20/month?   

[nfotiu]

We still have our xfinity package in NOVA which put son uses as he is at our house.  About $170 for internet and cable tv and phone (which we don’t use). Not terrible but the deal we had runs out soon. The irksome thing is that we can watch the Caps and Wizards down here in Florida with xfinity but not the Nats. It’s just dumb. Would be nice if MLB could do something like what the NHL is doing with ESPN+. $6.99 a month for almost all out of market games.

You can get a single team package to watch the Nats out of market on MLB.tv for $90/season.

[Natsinpwc]

You can get a single team package to watch the Nats out of market on MLB.tv for $90/season.

I signed up for a free preview last April. Cancelled it and somehow still has MLB to free through July.  I purchased it for the last two months of the year. Was $24.99 I think. I like watching other games also. And of course in Florida all the Marlins games are blacked out. So 19 games a year. Last year Tampa also.

[UMDNats]

Maybe they could call this...MLB TV?

[imref]

Apple reportedly pursuing MLB for its Apple+ service - https://www.cnbc.com/2022/01/12/apple-potential-bid-for-mlb-package-could-bring-big-player-into-sports.html

[nfotiu]

Apple reportedly pursuing MLB for its Apple+ service - https://www.cnbc.com/2022/01/12/apple-potential-bid-for-mlb-package-could-bring-big-player-into-sports.html

That's just random national games like they used to show on ESPN and along the lines of what has been on Facebook and Youtube in past years that just confused everyone on where to fine the games.   That's not really useful or game changing in any way.

[nfotiu]

https://nypost.com/2022/02/06/chicago-cubs-in-talks-to-launch-streaming-service-amid-resistance-from-mlb/

Lots of interesting info in this article about the Cubs trying to launch a DTC offering.    Some speculation in there that the MLB wants to avoid doing anything that may keep Sinclair on life support, and would rather them just go bankrupt so they can re-imagine the whole RSN model.   

We're getting close to a point where less than half of households have a traditional pay tv plan that includes their RSN, and MLB must be realizing they have to do something before they lose a generation or two of fans.

[HalfSmokes]

I could see that possibly working in Chicago and a few other markets, but that is just going to slaughter small markets. I can't see the Royals being viable if they are reliant on fans paying $18 a head for local streaming. I'd be worried too if I was the mlb because this is going to exacerbate the haves and have nots. At least with RSNs, someone was willing to bid because they could force it on local cable providers. With this, you'll have a handful of teams with enough fans to make it profitable and then everyone else

[imref]

for those of you with mlb.tv subscriptions, auto-renew date is tomorrow. maybe not a bad idea to cancel

[machpost]

for those of you with mlb.tv subscriptions, auto-renew date is tomorrow. maybe not a bad idea to cancel

Over the past two or three seasons, the Nats have given out annual MLB.tv subs to season plan holders. I wonder if that will continue this year, with nothing to watch.

[GburgNatsFan]

$18 a month doesn't seem excessive to me. Then again, I don't work/live in KC.

I could see that possibly working in Chicago and a few other markets, but that is just going to slaughter small markets. I can't see the Royals being viable if they are reliant on fans paying $18 a head for local streaming. I'd be worried too if I was the mlb because this is going to exacerbate the haves and have nots. At least with RSNs, someone was willing to bid because they could force it on local cable providers. With this, you'll have a handful of teams with enough fans to make it profitable and then everyone else

[HalfSmokes]

$18 a month doesn't seem excessive to me. Then again, I don't work/live in KC.

will enough fans pay $18 to make up for the lost carriage fees (only a couple of bucks, but paid by every cable subscriber in the whole region)

[nfotiu]

Doing the math on KC:

The Royals average about 42,000 HH per game.   Optimistically, if you got half of those to buy an $18/month package for the 6 month season, then that's about $2 million/year.

Their TV territory is Kansas, Missouri, Nebraska, Iowa, Oklahoma, and Arkansas I think.   That is about 18 million people (7.2 million households).  Pay TV penetration was about 85% a few years ago, so they probably had about 6 million subscribers to their RSN in the hay day of RSNS.   Probably about a $2.50 carriage fee for a smaller market team, so that's $180 million in revenue from their RSN/year.   Pay penetration has dropped by about 15% since then, and Bally's sports nets have lost a lot of coverager, so probably closer to $100 million/year these days.

$2 million per year does nothing to make up losing that $100-180 million.   That 100 million is sinking fast though, so they'll have no choice.   But when they're left with only a direct to consumer model, they are looking at $4 million/year most in revenue and they have to pay for production of games from that.   

[Natsinpwc]

for those of you with mlb.tv subscriptions, auto-renew date is tomorrow. maybe not a bad idea to cancel

Forgot about this. They sent an email today saying they would not be charging until further notice. I went ahead and cancelled anyway.

[JCA-CrystalCity]

https://www.cnbc.com/2022/06/01/red-sox-broadcaster-to-offer-streaming-service-outside-of-cable-bundle.html

Supposed to be the first such team streaming service.  Probably helps that the RSN that would be impacted is offering the service.  Given the wide Red Sox following, this will be a gold mine. 

[imref]

https://www.sportsbusinessjournal.com/Journal/Issues/2022/06/20/Insiders/Sports-media.aspx

Sinclair will soft launch its local sports streaming service in five markets on June 23, with a full launch still scheduled for the fall.

This marks the first time that Sinclair has set a specific date on the rollout of the much anticipated service that will start streaming local MLB games in Detroit, Kansas City, Miami, Milwaukee and Tampa.

The launch of Sinclair’s direct-to-consumer service, which it’s calling Bally Sports+, has a huge amount of importance in the sports business given the declining subscriber numbers among regional sports networks.

As media companies, leagues and teams try to figure out how to preserve the value of local sports rights, they are testing out streaming services as a way to maintain revenue sources.

Earlier this month, NESN launched a streaming service in the Boston area for Red Sox and Bruins games. NESN is selling NESN 360 for $30 per month or $330 per year.

By comparison, Sinclair will sell Bally Sports+ for $20 per month or $190 per year.

[HalfSmokes]

How long until cable companies use this as an excuse to drop Bally?

[UMDNats]

$20 a month for an RSN streamer isn't bad if you are splitting it like 4 ways. Also you have to love the audacity to charge $190 a year for Kansas City Royals games. Galaxy brain executives out there. At least NESN has Bruins & Red Sox.

[nfotiu]

How long until cable companies use this as an excuse to drop Bally?

I think the $20 price maybe keeps them happy for now.   At $20, the cable companies are probably ok saying they include a $20 channel in their base package.  Otherwise, a lower price probably generates more revenue.

I don't see them getting more than about 5,000-10,000 sign ups in most of their markets.   This seems almost certain to fail either this year or next and then they can bankrupt their sports division.