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Interesting article on MLB economics

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As it stands, MLB isn’t reliant on the cable bubble in the near term revenue-wise. RSNs and the money that comes with them could go away tomorrow, and the percentage hit to revenues would be less than when MLB couldn’t get a decent deal ahead of the 1994 baseball season. Finding 10 million customers willing to shell out $180 per season for local games streamed online wouldn’t even cause a significant drop in revenue. Increased money at the gate, spreading out the TV money between local and national, long-term contracts with Fox that go for the next decade as well the revenues in house at MLBAM for MLB.TV, the MLB app, and MLB.com spread the risk across multiple revenue streams. MLB beat the bubble, but declines in attendance, which place increased reliance on companies with an older business model like Sinclair, and alienating fans by contracting the minor leagues and making its product harder to watch could threaten the sport’s diverse revenue streams. 


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