By Michaela Gordoni
NBCUniversal, Netflix and ESPN are in talks with Major League Baseball to reappropriate a set of games on ESPN through 2029 after ESPN opted out of its $550 million-per-year contract after this season.
NBCU is interested in a deal to have MLB games on Sundays through its NBC broadcast network and Peacock. It would also get wildcard playoff games. The whole deal would cost NBC about $200 million per year, CNBC reported.
Netflix is looking at Home Run Derby for $50 million a year, while ESPN is eyeing MLB games for local markets through its direct-to-consumer outlet, Variety reported.
ESPN accused MLB of reducing games’ value by offering separate packages to Apple and Roku for lower prices and decided to cede its rights.
Related: ESPN and MLB Split Ways After 35-Year Partnership
Last Thursday, ESPN and Fox Corp. introduced streaming services that rely heavily on sports in an effort to reach millions of new consumers.
If Netflix succeeds, it would have a three-year deal to grow its live viewing reach. It’s had success with live events recently, particularly with WWE matches and NFL games.
If NBC succeeds in its goals, it would use MLB games to offer more major-league sports on Sunday nights through the year in a three-year deal. It currently airs SUNDAY NIGHT FOOTBALL and will show NBA games on Sundays after the next NFL season ends.
ESPN would be able to “geotarget” subscribers and make games available to people in certain markets for $550 million. It’s already assigned $450 million in value to license MLB TV, which is the league’s out-of-market games package. It would acquire in-market games for the Cleveland Guardians, San Diego Padres, Minnesota Twins, Arizona Diamondbacks and Colorado Rockies and a midweek package of national games.
“We believe that reach is a value asset to the leagues,” said ESPN Chairman Jimmy Pitaro last year.
“The local rights are where the true value lies, not national packages like SUNDAY NIGHT BASEBALL, which ESPN decided to drop following this season,” wrote Awful Announcing’s Drew Lerner last week. “Baseball is a regional sport. Fans follow the 162 games that their team plays, but don’t tune in for much else until the postseason.”
“So why pay hundreds of millions of dollars for national games that don’t provide a great return on investment? That’s seemingly the calculation that ESPN made earlier this year,” he said.
MLB’s current contract for FRIDAY NIGHT BASEBALL with Apple TV+ also expires after three years, and it’s unclear whether that will continue or not.
Read Next: How the FOX ONE and ESPN Bundle Will Work
Questions or comments? Please write to us here.
– Content: +2Share:
– Content: +3