MLB.TV: An Online Subscription Model That Works

(MoneyWatch) 

Whether you agree with it or not, one thing that's always been impressive about Major League Baseball is its almost authoritarian control of its content and brand. While other content providers have given the store away, MLB has actually made it difficult to consume its content except through official channels -- for instance, by pulling unauthorized videos off of YouTube. Now, with subscriptions to its premium services up by almost 46 percent according to data its digital arm released today, it appears its control-freakishness is paying off. Name another online-based content business that is charging consumers as much as $109.95 annually and seeing its sales go up in the worst recession in decades. You can't, can you? Video streams are up by even more: 127.2 million streams so far this year, an increase of 136 percent compared to the first three weeks of last year.

But it's not just MLB's content control that is making its subscription model work. MLB.TV Premium is truly an awesome product, proving that successful online subscription models aren't just about putting content behind a firewall but about using the online environment to exploit that content to the utmost. (There's also a cheaper tier for $79.95 per year.) Subscribers to the premium service, in addition to being able to stream every single major league game, can, where available, stream them in HD; the product has DVR functionality and chat features, can let subscribers watch as many as four games simultaneously and be alerted when their favorite players are coming to bat. There's little, if anything, the product's creators haven't thought of.

So, is this a model other content providers can duplicate? That's a tough one. Once again, I go back to my theory that if you're in a field, like newspapers, where your competitors offer comparable content, this model won't work for you, or will only work on a limited basis. But for those not in that situation, this is the model to duplicate.