BAMTech, Disney and "the Biggest Media Company You've Never Heard Of”

In-depth read · Key ideas, reasoning, and examples, organized by topic.
§01A sports league builds a streaming technology business
The episode presents BAMTech as a technology company that grew inside Major League Baseball rather than as a startup founded to disrupt television. In 2000, MLB created Advanced Media to build websites centrally for all 30 teams instead of leaving each club to hire its own web firm. The first attempt, outsourcing the work to a consulting company, failed: the sites were poor and the promised delivery never materialized. CEO Robert Bowman’s key decision was to build an internal engineering team and own the technology. The hosts emphasize how unusual that was for a sports organization at the time. Bowman himself came from corporate operations and finance rather than Silicon Valley, but the new team soon began experimenting with online content distribution.
MLB’s early streaming efforts illustrate both the cost of experimentation and the importance of matching the product to fan demand. In 2002, BAM spent millions building and marketing audio streams of Seattle Mariners games so fans in Japan could follow Ichiro Suzuki, but attracted only about 1,000 subscribers. The league had committed $120 million over four years, and by that point had drawn $60 million, so the failure mattered. A Ticketmaster partnership for online ticket sales then paid BAM $10 million upfront, creating a revenue stream and reducing the need to keep drawing from the teams. From the audio experiment, BAM learned that fans wanted to watch the games, not just hear them. By the end of the 2002 season it tested live video, and in 2003 launched MLB.tv for $80 per season, offering out-of-market games online. The lesson is less “streaming was inevitable” than that BAM repeatedly adjusted its product based on what fans would actually pay for.
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