Sports Media

[andyb]

That point is actually unresolved in the article:

It is not fully clear yet if out-of-market subscribers who pay for the package through cable or other linear subscription would still be able to receive MLB.TV that way.

But it would make little sense for MLB to require people to buy the package through ESPN. It is now available in multiple places already. Obviously I am not 100% sure, but none of these articles have implied any sort of exclusive here.

[zambonir]

I think MLB.TV is just going to be included with the ESPN digital subscription (or vice-versa, if you want to look at it that way). The same way what used to be NHL Center Ice already comes with ESPN+ as part of their newer NHL deal. The local packages will have their own cost, but that's already the case.

In the end they will presumably phase out the MLB app (as the main source of video streaming) and the ability to buy it through other platforms. And the bigger goal is still to convert MLB.TV into a national no-blackout streaming service where you can either buy it for one team or all teams. Which will presumably now happen via ESPN but still has to be sorted in the next round of TV deals.

[andyb]

Until we hear the word "exclusive" I think we have to assume MLB.tv will not be exclusive to ESPN. The dollars needed for that would be far more (billions) than have been suggested in the press since ESPN really wanted to cut the $550 million they are currently paying.

This new deal is probably for a fraction of the past deal. Midweek games are less valuable than the Sunday games. No playoffs or home run derby. But maybe $100 million or so to allow ESPN to offer this package on this service where the money will likely be made selling personalized ads to viewers - something that MLB is probably not cutting edge on.

Now ESPN is making the app available to most of their cable customers, so the barrier of getting it may be smaller, but I just don't think they see this like Sunday Ticket as something that will attract loads of new customers. MLB might lose half their audience if the package suddenly became exclusive to ESPN and that is definitely not their goal here. They need more viewers not less. The whole Paramount UFC deal was about gettiing more viewers too for that sport.

[zambonir]

I don't think MLB.TV is that big of a product, especially if you don't count all the subscribers who get it for free (which is every team's season ticket holder, including partials, as well as the T Mobile people and presumably some others). Most fans who live in their team's local market don't really need it, and while there are fans of the other 29 teams all acrosss America, it can't add up to that much (especially when you also factor in the many people who are blacked out, like in Texas or some of those multi-team Midwest regions, as well as some of our own people who get caught in between NY/Phi/Pitt rights).

[andyb]

One change with ESPN. Apparently they have removed the paywall on all ESPN articles on their website. I guess it did not make sense with so many more people getting the ESPN app and the various complicated authentication methods.

And it does look like ESPN is getting all of MLB.TV after all. Whether it is available without a full ESPN subscription is still unclear. Maybe one will get free ESPN Select with it and MLB.TV subscription which would make the point moot. Or it will just be free like the NHL.

https://www.wsj.com/business/media/espn-and-mlb-are-closing-in-on-a-3-year-pact-worth-around-1-65-billion-118a8cb9?mod=author_content_page_1_pos_1

ESPN deal for the same $550 they are paying now. NBC/Peacock $200 million for Sunday and Wild Card. Netflix $50 million for Home Run derby. So MLB is getting $250 million a year more but potentially subtracting subscription fees from their income (and things like the T-Mobile deal).

If their bet is that making it available like the NHL out of market plan will increase their viewers exponentially then they'll more than make it up in personalized ad income. That is probably what this is about. Smaller upfront for MLB but more viewers overall and more ad money.