Major League Baseball is shopping its online broadcast rights to the Web’s largest entities, playing the game that some of its free agents are famous for- playing bidders off the other and looking for a homerun offer.
“Everyone was balking at the numbers because the numbers were outrageous,” said one executive from a major media company familiar with MLB.com’s terms.
CNet reports that the negotiations highlight the ongoing turf battle between content and distribution on the Internet. In the offline world, sports conglomerates have found little problem with finding high bids from the large networks to pick up their games, which certain advertisers will pay an arm and a leg for. However, the online model works a bit differently where there has not been a sound revenue structure implemented via advertising, and paid subscription services can be tough to sell.
Apparently, some of the web´s heaviest hitters aren´t biting for such a major league draw.
Last week, RealNetworks ended talks to renew the contract which paid MLB $20 million over three years for the online broadcasting rights and the right to sell such subscriptions.
According to insiders, MLB Advanced Media (the company that runs MLB´s online operations and MLB.com), is pitching deals that demand hefty up-front payments in return for access to live and archived baseball games.
CNet reports
At least three other companies approached by MLB have expressed surprise over the league’s demands, according to sources familiar with MLB’s terms. The sources said MLB has sought substantially more than the $6.3 million a year it was getting from RealNetworks for exclusive access to its live audio and video feeds. Some other companies were not offered any live content, but instead given the option to sell downloads of “classic” games and to feature highlights on their sites.
Recently ESPN, Yahoo, and MSN have been looking to find a middle ground between broadband feeds, live video, and video advertising. Seen as many as the future of paid content on the net, such live concerts, shows, and sporting events may have a heavy hand in shaping the future of paid content on the web.
back to topWeb Ad.vantage is a full-service online marketing company with core competencies in search engine optimization, PPC Campaign Management and online media buying. Visit our Internet Marketing Services section to learn more about our full range of services.
WebAdvantage.net encourages the reprinting of our marketing tips and articles. Before doing so, however, please contact us at for permission to do so. The company bio located above is required to accompany any reprint. Thank you in advance for your professional courtesy.
Subscribe to our blog RSSPragmatic, professional advice with no hidden agenda.
Internet Business Forum
Find out more herePsychographically Targeted Web Advertising
By and large, online advertising has thus far confounded big-brand advertisers to date. With Internet usage only growing, large brands want to exploit the Internet on a similar mass scale that they do offline, but budget allocations haven't yet... read more
U.S. Women and the Internet, Part 2
In my last column, I reviewed how U.S. women currently consume the Internet and, in particular, various online ads. Let's delve a little deeper. Separate studies by Starcom/Tacoda and JupiterResearch/Ipsos show that both men and women click on... read more
Death Does Not Become Your Ad: When Run-of-Network Campaigns Go Awry
It’s unfortunate enough that violence, gloomy economic forecasts and natural disasters now make up our everyday news, but when you’re an unlucky advertiser whose online ad happens to get placed next to such content, chances are, no... read more
