Why a 30 Team, In-Market Streaming Service May Not be MLB’s Best Option After Demise of RSNs
Why a 30 Team, In-Market Streaming Service May Not be MLB’s Best Option After Demise of RSNs
Anyone who has been watching MLB’s relationship with Diamond Sports Group (DSG) deteriorate over the past few months knows that the sport’s future is not on regional sports networks (RSNs). Just this week, three MLB teams filed emergency motions in DSG’s bankruptcy proceedings protesting that they had not been paid, and that the league wanted to reclaim their broadcast rights.
That process could drag on for months, depending on several factors, but if MLB does eventually reclaim all of the broadcast rights for the 14 teams currently owned by Diamond, and each of its other 16 clubs as well, what would it do next?
There’s no doubt that baseball executives would like to see an expansion of direct-to-consumer (DTC) streaming offerings. Speaking at a press conference in February, baseball commissioner Rob Manfred said that once MLB had more control over the broadcast rights of its clubs, it could start thinking about expanded digital options.
“We would also be seeking flexibility on the digital side so that — when you look at MLB.TV — you could buy your out-of-market package like you always had,” he said, “but have the option to buy up into in-market games, something the fan has never had before, which I see as a huge improvement for fans.”
Recent personnel changes at the league office have also pointed to the possibility of expanding streaming options for MLB teams. But if the league did manage to claw back all of its broadcast rights from across the RSN landscape, in-market streaming on a single service might not be so easy to achieve.
A report from the Athletic sheds light on why such a service may not be the most practical option. The biggest reason for this is that an in-market streaming platform that featured all 30 teams would likely require the approval of all 30 owners, which is highly improbable. Bigger market owners can likely sell their streaming rights individually to a service like Prime Video or Apple TV+ for more money than a revenue-sharing streaming platform with all 30 clubs on it would bring in. Currently, the New York Yankees stream some in-market games on Prime Video and via the YES Network app. The Boston Red Sox games are streamed throughout New England on NESN 360.
There is a possibility that the league could force those owners to comply in signing over their rights to an in-market streaming platform, but a question in regards to such a scheme from The Athletic drew a carefully measured non-answer from Manfred.
“Look, that’s a legal question and I don’t really feel comfortable answering,” Manfred told The Athletic. “The reality is, I think any significant reform of the economics happens in some sort of consensual — if it were to happen, it would happen in a consensual process. But I’m not answering the legal question as to what’s possible.”
What might be more realistic for MLB is a hybrid solution. It could use its current out-of-market streaming platform MLB.TV to broadcast some clubs’ in-market games, while others could be handled by individual streaming platforms like Max. Warner Bros. Discovery officials have been coy regarding the future of sports on their soon-to-be-relaunched streaming platform, but it’s not hard to imagine them bidding on the rights to the Los Angeles Dodgers and Los Angeles Angels in a future where those teams control their own streaming destinies, despite the fact that the company has recently gotten out of the RSN business.
The real challenge in pivoting to streaming for the league will be financial, Manfred says.
“The tougher challenge is the replication of the revenue,” the commissioner intoned. “It’s a great business model when a whole bunch of people pay for something they don’t really care if they have or not, which is what the cable bundle did for us. It’s hard to replicate that.”
Still, he recognizes it is his responsibility to guide the league into the future and to ensure as many people as want to watch games can watch games in their local markets going forward.
“There will be a downward tick on the revenue side. I think it’s going to be a trough,” Manfred said. “I firmly believe in the value of the content. And I really believe that we’re smart enough to figure out a combination of distribution mechanisms that keeps that revenue stream as a growing stream.
MLB.TV
MLB.TV is the official streaming service of Major League Baseball. You can see every out-of-market game live or on demand, and choose home or away TV and radio feeds. The app allows fans to watch up to four games simultaneously on the same screen through their Multi-view feature. MLB.TV can be added to your Sling TV or Prime Video subscription.