MLB Advanced Media, which already offers an unbeatable deal for avid baseball fans at $20 per month for all the on-demand content they can handle, is now teaming up with the NHL to offer the same service to hockey fans.
According to Peter Kafka of recode.net, the new deal will give the rising giant a staggering value of $3 billion. He reports that MLBAM will now own “the rights to pro hockey’s digital subscription products, as well as its cable TV property.”
MLBAM is turning into a streaming juggernaut.
When originally developed, its purpose was to offer streaming content for the 30 pro baseball teams in the MLB. Due to the overwhelming success of the company, however, other huge companies such as ESPN, HBO and even the WWE have come under the umbrella of MLBAM.
As part of the new deal with the NHL, MLBAM will give $100 million per year and an additional 10 percent of the new company. However, there is potentially much more to gain according to Bob Bowman, who leads these efforts:
“The NHL deal could allow MLBAM to make more money over time, says Bowman, since MLBAM will be selling advertising against the games. ‘The upside is principally ours, but there is more risk there,’ he said.”
Traditional viewing options are becoming more and more irrelevant in this new world of digital streaming content. As the times change, there isn’t another company out there evolving to fit the needs of this new environment quite like MLBAM.
And it appears it is just getting started.
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