Monday, June 19, 2006

Do you listen to MLB on the radio? If so I hope you have XM Radio

As you know, all sports go where the money is. Now it appears MLB may be getting ready to take another step in that direction. With only 23% of MLB on local broadcasting and 8 MLB team now exclusively on Cable TV, it is likely some teams may be moving to subscription radio exclusively versus terrestrial radio. Edison’s Larry Rosin tells the Wall Street Journal “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 could all be good news for XM Satellite Radio as they will hold the exclusive rights to all major-league baseball games for over-the-air broadcasts. The MLB's own online subsription Internet radio, MLB Radio, will surely benefit as well.

Due to revenue between XM Radio and MLB Radio being split evenly among the 30 teams, there's an added financial driver to make this happen. With 23% of XM subscribers signing on primarily to hear the MLB, the revenue driven (and shared) due to exclusivity would make dropping terrestrial radio the inevitable future.

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