|MLB Revenue from Media|
|Written by Administrator|
|Sunday, 08 May 2011 08:17|
It is said that by the year 2002, MLB’s revenue from media exceeded revenue from the ticket sale. Can you believe that MLB shunned any sort of media indulgence in its earlier days fearing the popularity of venue game watching would decrease? What then made them change their mind?
Initially after great hesitance when MLB allowed radio broadcasting of the matches, the only revenue was from local radio broadcasting. Later in 1950s this broadcasting expanded to National radio through Liberty broadcasting system. It was only a one year contract and the next year broadcasting reverted to local news only. Another expansion took place by 1922 when the World Series were broadcast nationally. For all national broadcasts, a contract is negotiated between MLB and the provider and the proceeds are distributed equally to the playing teams. The first television broadcasting of the MLB matches came around in 1939; however this was only an experimental idea. The first local television contract was given out by New York Yankees in 1946 for a fee of $75,000. The fee was quite meager compared to what they demand now - $52 million per season. MLB however took to television only by 1966 selling its national television package for the first time and earned $300,000 for each team. It's kinda similar to the growth of Casino games online, when in the old days you use to play out of the casinos in Vegas, where today you can enjoy all the games the casino can offer, including blackjack slots and poker, simply playing it online.
|Last Updated on Wednesday, 07 November 2012 14:24|