MLB Advance Media Acquiring NHL Streaming Rights

MLB Advanced Media, the company that streams video for Major League Baseball and many other clients, is getting ready to spin out its tech operations in a deal that would give the new company a value of at least $3 billion, according to Peter Kafka at ReCode.net.

And as part of the spinout prep, MLBAM is bulking up: It has signed a long-term deal with pro hockey’s NHL, which will give MLBAM the rights to pro hockey’s digital subscription products, as well as its cable TV property.

In return, MLBAM will pay the NHL $100 million a year for six years, and will also give the hockey league up to 10 percent of the new company.

MLBAM, which is owned by pro baseball’s 30 teams, was originally built to handle digital streaming for pro baseball alone. But over the years it has become a service provider for a wide variety of media companies, including ESPN, HBO and pro wrestling’s WWE.

The NHL deal is the first time MLBAM has paid an entertainment entity for the rights to operate and sell their digital properties. Usually, MLBAM provides basic streaming services for companies with their own front ends, like ESPN; in some cases, like HBO’s HBO Now product, it has been building and operating the system and apps as well.