paidContent - MLB's In-Market Streaming: 50-50 Rev Split; Padres-Cox Coming Next

This story was written by Rafat Ali.
Updated: The Padres deal has been announced officially: customers who subscribe to Coxs broadband service in San Diego area can purchase a package of San Diego Padres game telecasts for live in-market online viewing. The cost is same as the Yankees deal for the rest of this season: $49.95 for the remainder of the season or $19.95 for any 30-day period. It will launch on and starting with July 16 San Diegos Rockies-Padres game.

Original post: We have reported earlier on MLB Advanced Media’s plans about in-market streaming, with the first one about between YES Network, Cablevision (NYSE: CVC), and MLBAM announced earlier this month. Now, according to a memo sent out by MLB Commissioner Bud Selig on June 19th, obtained by SBJ, the next one to come online will be San Diego Padres and Cox Communications, to be announced this week. Other teams are not close to a deal, the story says, but most are expected to come online by next season.

More importantly, the memo outlines the revenue split in general terms: MLBAM would get 50 percent of the revenues generated from this subscription add-on service, with local interests (meaning the cable cos, RSNs and the league teams) getting rest, and this would be net of operating costs to participating broadband and wireless service providers, according to the memo.

However, Selig stresses that each streaming deal would be different, mainly because local interests/arrangements differ for each team.

Also, this rev split would be revisited in two years in 2011, to determine the fairness of the allocation and the impact upon industry economics”, the memo said. He does admit that the revenues initially would be “quite modest.” Well, a choice between watching the game on a 50-inch flat screen in HD vs a laptop screen for which I have to pay extra: a hard decision, no doubt.


By Rafat Ali