Thursday, April 10, 2025

Major League Baseball Exploring MLB.TV Licensing Deal


Major League Baseball (MLB) has been exploring new avenues for distributing its MLB.TV game package, a streaming service that provides fans access to out-of-market games, as part of a strategic shift in its media landscape. According to sources briefed on the discussions and reported by The Athletic, MLB has engaged in talks about licensing MLB.TV to networks and/or digital platforms. This move comes amid evolving viewing habits and significant changes in the league’s existing broadcast partnerships.

The catalyst for these discussions was ESPN’s decision in February 2025 to opt out of the final three years of its $550 million-per-year contract with MLB, which was set to run through 2028. ESPN, a long-standing partner since 1990, cited financial misalignment—paying roughly $550 million annually for a package generating about $150 million in ad revenue—prompting MLB to terminate its side of the deal as well. Commissioner Rob Manfred called ESPN a “shrinking platform” in a memo to team owners, signaling a pivot toward new opportunities. ESPN will continue airing “Sunday Night Baseball,” the Home Run Derby, and the Wild Card round through the 2025 season, but the split has pushed MLB to seek fresh partners.

MLB.TV, launched in 2002, has been a league-controlled service offering all out-of-market regular-season games for $149.99 per year, alongside in-market packages for 10 teams ranging from $99.99 to $199.99. In 2024, it logged 14.5 billion minutes watched, underscoring its popularity among fans. The current talks involve potentially licensing this package—or parts of it—to external entities like NBC, Google, YouTube, and Fox, all of which have reportedly shown interest in the ESPN-vacated package. 

This could mean ceding some control over MLB.TV, which has historically been sold directly to consumers, to a third-party network or streaming giant.

The backdrop to these negotiations is the erosion of the traditional cable TV ecosystem, particularly affecting regional sports networks (RSNs). The bankruptcy of Diamond Sports Group, which once carried games for nearly half of MLB’s 30 teams, and Warner Bros. Discovery’s exit from the RSN business have disrupted local broadcasts. In response, 27 teams now offer direct-to-consumer (DTC) streaming options, bypassing RSN blackouts, though the Washington Nationals, Baltimore Orioles, and Houston Astros remain without such services. Licensing MLB.TV could further this DTC push, giving a platform exclusive access to a vast game library—hundreds of contests annually—minus national exclusives with ESPN, Fox, Roku, and Apple.

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