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The Biggest Name in the Media Industry is the Last Name You’d Expect

They’re one of Apple’s primary partners, appearing at keynotes for new Apple product launches. They are slated to engage in 400,000 hours of streaming live video in 2014, and revenues for the year are estimated at $800 million. By 2016, their revenue projections will hit $1 billion. They’re among the most popular choices for content infrastructure, and one of the biggest media companies in the country. This company isn’t known as a media giant; they’re far more recognizable in other circles, though.

 

One of the biggest media companies in the industry right now is actually MLB Advanced Media, the tech company of Major League Baseball.

How Major League Baseball Became a Media Industry Giant

With their innovative approach to media, MLB’s tech division is now considered more of a media company than a baseball organization. MLB Advanced Media began with MLB.com, and was funded through an agreement with the thirty baseball clubs which comprised of $1 million each year over a four-year span. The estimated cost was $120 million, but MLB Advanced Media began turning a profit three years later. After investing less than $75 million, investors started to see ROI, and now those thirty owners are earning annual dividends.

Pioneering Streaming Sports and the Media Industry

While many sports leagues offer streaming video systems which are only in their infancy, MLB Advanced Media rolled out MLB.TV in 2002 in order to take advantage of untapped revenue sources stemming form the large number of games each season. On the back of the pioneering streaming service came June 2014’s 120 Sports, another trailblazing venture which involves multiple leagues, including the NHL, the PGA Tour, NBA, NASCAR and collegiate games. With the purchase of Tickets.com, MLB Advanced Media was able to further secure its position as a media giant by improving the way customers buy tickets to live games.

With little fanfare, MLB Advanced Media has positioned itself as one of the biggest and most successful tech startups in the nation. “I think it’s not only one of the great stories in American sports business in the past twelve years,” says league commissioner Bud Selig, “But one of the great stories in American business.”

 

 

Photo courtesy of Flickr

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