MLB: Webcast fee a savvy move

The old saying "There's no such thing as a free lunch" has taken on new meaning in Major League Baseball this season. It's bad enough the price of tickets has gone through the roof and an evening out at a game with a family of four could very well cost you upwards of $100 to $150 depending on the venue. Well, now there's such thing as a free baseball Webcast. Beginning this season, MLB is charging consumers to listen to Webcasts.

Actually, when you think about it, it's not all that bad a thing. In a three-year deal with RealNetworks Inc. that will net MLB $20 million, the baseball league will offer live audio broadcasts of all major league games exclusively through RealNetworks' RealAudio software for an annual subscription fee.

On the surface it may seem unfair, but in reality it's a savvy business deal by the league, and a sign that the powers-the-be in the league office finally understand how to get a return on investment for MLB's Internet properties.

It wasn't that long ago that MLB owners weren't sure how to view the Internet and its role in baseball, seeing it primarily as a marketing tool and potential threat to their fiscal well-being. But times changes and so do viewpoints.

Now, through the league's Web site – www.mlb.com – visitors can pay the annual $9.95 fee for the audio Webcasting service. And, in another wise move, they're offering incentives to people who may otherwise balk at paying for something that last year was free – a $10 coupon to buy merchandise through the league's vast network of Web site partners.

Talk about getting it. Bob Bowman, MLB Advanced Media's chief executive, didn't mince words when explaining the situation, saying the coupon was the league's way of recognizing the change from a free model to a fee-based service.

To satisfy the ever-hungry sports fan and soften the blow of the subscription fee, MLB is throwing in a number of extra features – updated statistics, pitch-by-pitch displays and a choice between home and away audio feeds – designed to give customers value for their dollars.

Every move seems well thought out. It's amazing considering that not long ago the league's decisions appeared to be made without the consumer – read: fan – in mind. When the 1994 World Series was cancelled, it was nearly a death blow for baseball. But the league came roaring back stronger than before and, going into this season has a definite plan to capitalize on its online presence.

Alas, like any good idea there's a catch.

Just as the league is beginning to get it and think about the consumers all is not rosy in baseball's future. The college bargaining agreement expires Oct. 31, 2001, and both sides are digging in their heels for what could be a protracted negotiation. What will happen is anybody's guess.

And, while the deal with RealAudio seems to be a nice cash return on investment for MLB, let's put the dollars into perspective. At $20 million over three years, it's not even one-third of Alex Rodriguez's annual salary. MLB, however, is banking on the growth of fantasy sports and consumers' desires to listen to any game being played as the first step of getting long-term returns on its investment.

If MLB Advanced Media sticks to its guns and continues to develop innovations, it's this type of reasoning that will ultimately lead to the success of this business initiative or, if it falls off track, will spell its downfall. Odds are, with few Web properties paying dividends on the investments, this one looks to make money and is destined to be a home run.

Let's just hope that in 2002 there are actually games to listen to.

Dustin S. Klein (dsklein@e-sports.com) is editor in chief of e-sports.com