Archive for mlbam

By now, you may have heard that the NHL has partnered up with MLB Advanced Media (MLBAM) in a new distribution deal. It’s a bold move for both leagues, and one that shows that the NHL is serious about increasing their online presence and offerings. But hidden in the details are even bigger revelations about the future of MLBAM. From the CBS article:

NHL COO John Collins would not confirm these figures, but word is the league valued the deal at $200 million per year.

The annual breakdown: a $100M rights fee to the NHL, $20M in savings from the league not having to invest in the capital resources/expertise it would take to go on its own, and $80M in equity in MLBAM’s technology business.

The equity portion may not figure in revenue calculations for the purposes of the salary cap. “We were told to expect $120M per year in added revenue… $4M per team,” one governor said.

This new deal is indicative of a fairly serious pivot. MLBAM made a name for itself as a content partner — a company that provided the infrastructure for those who wished to offer online content streaming. The massive system that they built to host their MLB.tv service was essentially leased out to the likes of ESPN, HBO, and WWE.

But with the NHL deal, MLBAM is no longer serving as the back end. They aren’t the ones being paid for hosting, they are paying for distribution rights. And they are buying everything lock, stock, and barrel. Besides being in charge of streaming NHL Center Ice, MLBAM is taking over NHL Network, NHL.com, and individual team web sites. Basically, if you want to view NHL content online, you have to go through MLBAM.

And there’s more. According to Forbes:

Along with the deal, the NHL would have equity in what is now called BAM Tech, a wholly new digital company that will be spun-off of MLB Advanced Media.

There’s the other shoe. What once started as a distribution channel for baseball games has become a lucrative technology business.

But I doubt this is the end for BAM Tech. They could certainly take their subscription fees from baseball and hockey fans along with their licensing fees from HBO and be content being a very profitable company for some time. But if that was the plan, they would have just taken the NHL’s money for distribution rather than paying them for the rights. Sure, they’ll make money from Center Ice and the NHL Network, but it could be indicative of a bigger move.

The “problem” with MLBAM’s business model is that it’s easily repeatable. Any company with enough capital and infrastructure can get in on the action. What MLBAM has that others don’t is partnerships. Right now, it works with two major sports leagues, *edit: I originally neglected to mention that MLBPA also hosts streaming for the PGA*, the biggest name in professional wrestling, the largest sports media company in the world, and the most popular premium cable channel. If one were inclined to, say, start their own over-the-top online TV provider, this would be a pretty good start.

It’s speculation at this point, but it wouldn’t be surprising to see a BAM app available on smartphones and set-top boxes in the near future. While they’d be competing against the likes of Sling TV and PlayStation Vue, the already-formed partnerships along with their world-class technology platform would certainly make them a formidable opponent. And don’t forget that HBO owns Cinemax and is a subsidiary of Time Warner (which just merged with Charter)*, while ESPN happens to be owned by Disney. There are a lot of fingers in a lot of pies here.

* – a studious commenter pointed out my mistake here.

Say you want to pay $120 for MLB.tv. What if BAM Tech could offer that plus HBO, NHL games, the Disney channel, and ESPN offerings for an extra $40 a month? Would the availability of live sports be enough to convince you to cut the cord?

MLBAM already built the gun, and now they’re starting to buy the bullets. There isn’t much stopping the once-quaint sports video service from becoming one of the biggest players in TV.

At this point, we should be talking about what businesses aren’t working with MLB Advanced Media to handle their video streaming needs. Nevertheless, we can now add the PGA to the ever-growing list of organizations and companies piggybacking on MLBAM’s logistics and infrastructure for broadcasting live video over the Internet.

During a press conference at this week’s WGC Match Play Championship, PGA Tour commissioner Tim Finchem announced that MLBAM will be working with the PGA to broadcast Thursday and Friday rounds of certain events over the Internet. This is not meant to usurp traditional TV coverage that kicks in later in the afternoon, but to supplement it by allowing fans to check in on the action before scheduled broadcasting begins.

PGA Tour Live, as they’re calling it, will charge on a per-event fee, and is expected to cost less than $10 per event. There are still some things left to speculation, but the new service is expected to launch sometime later in the summer. Fans can sign up to be notified when the service is available to the public.

MLBAM has already had their fingers in streaming the NCAA Tournament for Turner as well as WrestleMania using their expertise. Oh, and they also worked on a little something called HBO Now. MLBAM is blowing up, as they say, and their hold on the streaming industry is only getting stronger.

(Image via Ryan Schreiber)

MLB Advanced Media, or the biggest media company you’ve never heard of, is about to embark on a video streaming expedition the likes of which the internet has never seen, supporting five launches in the next month alone, all while providing video streaming infrastructure for CBS Sports, ESPN, and WWE.

Take a look at this list put together by TechCrunch’s Matthew Panzarino:

• 3/18 – Sony’s PlayStation Vue
• 3/18 – March Madness streaming for Turner
• 3/29 – Wrestlemania
• 4/6 – MLB Opening Day
• 4/12 – HBO Now debut with Game of Thrones

That launch calendar would be great if it occurred in a year’s time, but MLBAM is doing it in one month. If they nail it, MLBAM will be in prime position to do what has been speculated for months — spin off into their own digital entertainment company. As our esteemed managing editor, David Temple, noted, “Through some forward thinking, some early investments, and a little bit of luck, a sports league has ended up being a giant in one of the biggest tech industries around.”

As was previously reported by TechGraphs, HBO Now is being launched with an exclusive partnership with Apple TV, which created whispers that Apple is looking to start their own over the top streaming service like Sling.

In his interview with TechCrunch, Bowman responded to a question about the possibility of MLBAM supporting Apple in these efforts by saying, “I have no idea. We’d be honored to be part of anything, really… What people forget is how long they’ve been together, and how well they’ve been running the company. I think everybody would do a lot of things to be partners with Apple, but it’s hard to imagine there’s anything technologically we could bring to Apple.”

Continuing with the Apple theme, Bowman gave an update on the At Bat app launch for the Apple Watch, saying, “We obviously built a whole interface, when it launches in April and people sync their phones, [sic] obviously, the interface is different. Every piece of hardware has to look different… Hopefully, it looks cool and neat and — the watch itself, there’s ways to dig deeper. When you move it, you might just get an update, but when you punch it a couple times, it’ll dig a little deeper.”

Right now MLB.com is 85 percent of MLBAM’s business, but obviously that number is likely to fall given all off the business they’re taking on. When asked pick a competitor for MLBAM, Bowman responed, “I think the biggest competitors that we have are inertia.”

(Image via Ming-Yen Hsu)

You may have heard the term MLB Advanced Media (MLBAM) in the past. They are the folks behind MLB.tv as well as the At Bat app and Gameday feeds. But they’ve gotten so good at delivering digital content, that they have branched outside of baseball. MLBAM now helps power the WWE Network, WatchESPN, and MLBAM technology will soon be providing the long-awaited standalone HBO GO service. MLBAM has become so large and powerful that MLB is looking to possibly turn it into its own business.

The idea is to keep the websites and ticketing stuff with MLB, but to fork everything else over to MLBAM. While it’s possibly a surprising move, it shouldn’t be unexpected. MLBAM makes crazy paper for MLB, and it’s only looking to expand. They took a bet on video streaming over ten years ago, and have since built a solid infrastructure around that technology. They are the mechanic that’s been on your block for decades — others might promise more, but MLBAM has been around forever. They know how to make these things work.

And no matter how much content providers whine and moan, more and more TV is going to be shown on things that aren’t TVs. WatchESPN is expanding all the time. HBO GO’s move will soon inspire other top-tier cable networks. We can every Simpsons episode ever made on our phones, for crying out loud. I feel like I’m in one of those news stories from the 90s that’s trying to tell you what the Internet is. You know these things I’m telling you, but they’re important to remember when thinking about what MLBAM is doing. Through some forward thinking, some early investments, and a little bit of luck, a sports league has ended up being a giant in one of the biggest tech industries around. And instead of sitting on their haunches, they’re being proactive about it. And that’s hard for a large company to do. Startups are nimble, easily adaptable. Big companies with lots of human and financial investment can’t navigate as quickly, but MLBAM is trying their best.

They are succeeding at it, too. And only look to get stronger and richer. Now, if they would return Sports on Earth to its former glory, then things would look even sunnier.

(Image via Geoff Livingston)