How NBA went online

1. Major League Baseball Advanced Media:
America’s Pastime Goes Digital
Izabella Andersson I Clara Rodrigues I Matilda Olori
http://www.youtube.com/watch?v=fK7bocrVDMs&feature=player_embedded

2. E-commerce encouraging changes
• Baseball Advanced Media (BAM) has a well structured business
model, the e-commerce store formation was to improve MLB’s
competitive balance.
• Best league website till date with 30 official MLB clubs websites
• Partnership with Apple to launch apps (iPhone and iPad) which is
the second highest selling apps.
• Generates $440 million annually from Tickets, Paid Content, cable –
television contacts, Advertising sales and Merchandizing
• Attracts over 50 million visitors per month (as videos can’t be found
on other sites)

3. E-commerce encouraging changes
• They offered a variety of products on different platforms.
• MLB.com
• MLB.TV (Charged a premium on this model)
• Established itself as a technology leader (highlights, streaming
games)
http://mlb.mlb.com/video/play.jsp?content_id=19960359&topic_id=11493214&c_id=mlb
• They had a practise of offering free live games to get reaction
of consumers in other to entice them.

4. Digital Revolution
• BAM (Baseball Advanced Media)
• 2000 a unanimous voice to go digital
• Bob DuPuy’s vision to take advantage of the media world
• 2500 games a year – a potential to exploit
• 30 teams x $4 million each
• A website for each team = revenues distribution

5. Digital Revolution
• Money from Technology
• Just write down every single detail & HIGHLIGHT
• Software & “Online geo-location technology”
• Key goal: presence in multiple-consumers platforms
• Source of money: paid-content model
• 475 employees = $ 475 million

6. 2002-2011

7. Wider issues
• Fans are better served through MLB Network website, than only through TV
• By being in the forefront of technology, it advances (broadband, wireless),
innovating the whole IT industry
• By offering commercially viable content, innovation continues.
They prove that it is possible to sell subscription content online
• By offering attractive services online (which people are willing to pay for) a
company can become less dependent on advertising and sponsorship income
• Online content allows people to get in touch with the product more frequently
(video on demand, through an app on the iPhone, through updated scores)

8. Wider issues
• The work day (M-F, 9am to 5pm) is the primetime for Internet video
• Mobile subscribers watching video online in Q3 2011 showed the fastest growth
of all viewing mediums
jumping 37% year-over-year and 5% quarter-over-quarter to reach more than 10% of the population. This
represents a jump of 205.7% in users since Nielsen first launched its report in Q3 2008.
• Personalization and interactivity increases appeal of online content over TV
• Online shopping and subscription model means less dependency on advertising
and sponsorships

9. The Strategy
• Election of a key commissioner: Bud Selig
• 4 regular meetings / year consensus
• 80% revenues from local sources & 20% from centralized sources
• Redistribution of revenues across teams to balance competitiveness
“REVENUE-SHARING AGREEMENT in 2011 teams paid the league 31% of local revenues”
• TV Network (ESPN, FOX, TBS) 80 games per season & exclusive
Sunday night games 5 times per season. Monday and Wednesday
broadcasts. FOX rights agreement until 2013.
• Radio contract and Nets
• 2009 own cable television - 50 million subscriptions
• Events, program and website promotion
• TOTAL CONTROL OF FAN’s EXPERIENCE on & off-field
• Interactive, personalized and up-to-date information online

10. Thank you!