| MLB to Disappear from Terrestrial Radio |
| Written by Zak Scharfen | |
| Tuesday, 20 June 2006 | |
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The changes that took place in the way MLB games were broadcast on television made many think that the same will happen to radio soon enough. Today, local television stations only broadcast 23% of the MLB games. Also, 7 of the major league team games are only available on cable, an exclusivity factor that seems to work well for them. In an interview to WSJ, Edison Media Research's President Larry Rosin declared that "it is probably inevitable that baseball radio broadcasts will go to a 100% subscription model... It will happen because there's too much money in it not to do it." This is an interesting perspective for the two main digital satellite radio providers, XM Satellite Radio and Sirius. This potential development sounds excellent for XM especially, as they would hold the exclusive rights to all major-league baseball games. Of course, that would be an important step forward for XM, as the MLB generates huge interest in the US, and it would mean that another building block has been added to the development of satellite radio. MLB Radio and XM Radio MLB also has its own subscription paid online radio channel, and if the same thing happens to radio as it did to television they would definitely enjoy the situation. Since experts in the communication field consider that satellite radio is still in its infancy, the trend of moving broadcasts of such games to a subscription paid environment would take digital radio broadcasting to the next level of development. The earnings from XM Radio and MLB Radio are split between the 30 MLB teams, but they are divided equally. This means that the MLB team’s interests would be high and the economical and financial factors could speed up the process of making MLB games exclusive to satellite radio. The statistics we have today tell an interesting story: presently around 23% of XM subscribers have signed up to receive the MLB transmission, so there is a lot of potential for growth. Terrestrial radio can already start to feel the danger of loosing MLB broadcasts to satellite radio as this revenue driven model is more attractive for the MLB teams.
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| Last Updated ( Wednesday, 26 July 2006 ) |