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MLB Advanced Media
- 1. MLB Advanced Media By Danni Wysocki MSA 412
- 2. History of streaming 2000 MLB teams invest $120 million to create MLBAM 2003 MLBAM begins streaming MLB games to 100,00 subscribers 2005 SlingBox enters market 2007 Netflix & Hulu begin streaming 2010 HBO Go In 2015, 55% of TV was consumed via streaming vs 45% live TV
- 3. MLBAM Value $1 billion, Projected 2016 revenue ($1m per team/year) $800 million, MLBAM 2014 revenue $5 billion, MLBAM value $120 million, Investment made by MLB teams over 4 years for shared equity stake
- 4. MLBAM Streaming Growth 400,000 hours Live games streamed by MLBAM in 2015 Live games streamed by MLBAM in 2009 18,000 hours vs 60% Increase 2015-2014 Opening Day streams 65million 2015 live streams & on-demand videos
- 5. BAM Tech Third-Party Streaming WWE Turner PGA Tour HBO Now Watch ESPN
- 6. MLBAM Competitors MLBtv Sports media rights holders BAM Tech Streaming services Anvato & Akamai Fox Spots streaming infrastructure SlingTV Watch live TV anywhere ESPN & NBA NBA streams its own games on LeaguePass. 2014 ESPN partnered with NBA for OTT NBC Sports Streams Olympics, NHL playoffs, NBA RSN games
- 7. RSNs & MLBAM in-market streaming August 2015, Fox Sports & MLBAM agree to in-market streaming Fox Sports RSNs must pay additional 4% increase on rights fees & require users to authenticate cable subscription to watch streamed games MLBAM will takeover streaming Fox Sports infrastructure. NBC refuses to give up streaming services for in-market RSN games.
- 8. MLBAM & NHL partnership $100 million MLBAM pays NHL for streaming rights to NHL games NHL’s equity stake in BAM Tech per terms of agreement 7-10% equity 6 years Agreement MLBAM will handle NHL digital content $200 million Value of deal per year August 2015, MLBAM announced digital media rights deal with the NHL
- 9. Outside Streaming Platforms 54 years old Avg age of MLB fan 71%SnapChat users between 18-34 • 2015 SnapChat MLBAM partnership exchanged no money but was first weekly brand story • Partnership extended to multi-year deal. Ad sales sold through Viacom • Partnership with Time Inc. to create next- gen ESPN platform with 2-minute sports video analysis
- 10. MLBAM Future Investments Current ESPN media rights deal expiring in 2017 $1B /10-years Spent watching Netflix per month 10 billion hours Rights fee Yahoo! paid to stream Bills and Jaguars games $20 million Original ContentCollege Rights NFL Rights