the revenue model: why baseball is booming - programmable led signs

On the surface, $6 is amazing.
Major League Baseball earned almost $1 billion last year, compared with $2007 in NFL revenue. 3 billion.
In 2008, the Super Bowl broke the TV ratings record again, attracting nearly 100 million viewers, while the audience watching the 17 million World Series was only 2007.
But baseball has found more and more creative ways to increase revenue.
From intuitively reducing the number of seats in the stadium to streaming videos selling baseball games online
For five consecutive years, revenue hit a new high.
Baseball is still a form of local entertainment.
Some analysts trace back to its historical roots, half as early as the national market and television. century.
Unlike the NFL, the NFL has more than two Revenues
The national broadcasting revenue of baseball accounts for less than 20% of the National TV revenue (
$0. 935 billion in 2006).
The biggest share comes from revenue from its ballpark and local broadcasts.
At the local level-
Sales soared-
New theme tickets, offers and ads-
Park style Stadium
Some of MLB's biggest home runs.
High Stadium-
Since Baltimore in its city in 1992-
17 of the 30 teams have established brands-new ballparks.
There are five more planned or under construction (
Including the New York City plan
New Yankee Stadium and the header opening of the Metropolitan Citi Stadium next season)
Other countries are undergoing major transformation.
See also: Baseball yearbook: "baseball field, baseball field and place of dreams ".
HOK Sports in Kansas City
Headquartered in 19 new stadiums or behind the renovated stadium, construction companies typically add 50% square feet to the previous stadium, freeing up space for amenities and revenue-generating facilities.
As one of HOK's executives told Business 2. 0: “The event [baseball]
In the background.
The prospect is all these other activities.
Is it "I need to buy a Swede" or "there is a beer garden ".
"Thanks to MLB's ability to combine the appeal of the masses with fans and its monopoly in playing hard balls --
Threatening to relocate its artificially scarce franchise
Public subsidies are available for almost all new and rebuilt stadiums.
See also: "Stadium mania: commercial, civic and legal issues with the construction of the new stadium --
Part one by John R. Middleton Jr. , Scott L.
Matthew savaré, legal counsel for Walker and Metropolitan Corporation
Take a look at the 2004 PETCO Park in padres, San Diego, which was built for $0. 45 billion, and its featured facilities, such as the 200 "shelter seats" 45 feet from the home plate ", there is a private entrance to the two private restaurants and the service of the waiter. PETCO Park ($2.
Naming rights only 7 million a year)
There are only 42,455 seats, which makes it a third smaller capacity than the front home of Qualcomm Stadium.
But after moving to the new venue in 2004, the team sold millions of tickets, and since then even more than 1998 World Series a year.
Similarly, as the average fare for the new stadium rose by 32%, the club's revenue rose by 50% to $0. 15 billion, and continued to grow thereafter.
The smaller stadium, the more profitable major league team sold 79.
5 million tickets last year
This is the fourth consecutive annual record,
The average attendance rate per game reached 32,785.
This year, MLB Commissioner Bud Selig has set a record of more than 80 million in ticket sales.
What is even more impressive is that these records come at the same time that ticket prices have risen above inflation.
MLB fares have risen by an average of 87% over the past decade, with 2008 being 10.
More than 9% last season.
In fact, the Fan Cost Index compiled by the Team Marketing Report includes a four-member ticket, plus beer, soft drinks, hot dogs, shows, parking lots and ball caps, up 67% over the past decade
Part of the reason that has prompted so many fans to come to the baseball stadium at a higher price is the stadium itself, where there has been an unprecedented upsurge of building and facility improvement.
With the exception of retail space and theme park attractions, there are fewer seats in almost all new facilities: 20 new stadiums (
Or is about to open)
Since 1992, there have been more than 200,000 fewer seats than their predecessors.
So skillfully calculating the fares of scarce floats creates a better atmosphere --
Whether it's in the intimacy of the stadium, or in a venue that's almost packed, energy compared to half a venueempty house.
New media, one of the biggest players of new money baseball's recent success is Major League Baseball Senior Media (MLBAM)
Responsible for the official website of MLB, MLB. com.
The site was launched in 2000 with support from all 30 teams, each contributing less than $3 million to launching the site.
MLBAM has taken off like a rocket, generating $0. 38 billion in revenue last year and is still growing 30% per year.
On the most basic level, MLB.
During this season, com receives up to 8 million unique visitors per day, providing a central location for team news, merchandise and ticket sales.
In addition, more than half through sales
Baseball has gained a lucrative digital expertise, with millions of season subscriptions for live game videos ranging from $80 to $120, and up to 3 million videos per day to meet demand.
MLBAM now manages content for many online affiliates, including the NCAA basketball tournament and the Tennis Open.
In fact, MLBAM now has more than 12,000 live broadcasts every year.
It is reported that there are more Internet producers than any other in the world. MLB.
Com also promoted ticket sales: it made up third of all sales last year.
In the past, ticket sales often slipped 72 hours before the game.
In terms of baseball, less attendance means less demand for concessions, for in-
Stadium ads
Now, except for MLB.
Convenience of Com, final delivery by at least eight teams
The number of minutes of the mobile phone.
Another factor that helps with the season of sale and the main ticket could be the new legitimacy and convenience of reselling tickets --
The secondary market used to laugh (and illegal)as scalping.
Last year, MLB announced
Reached an annual agreement with eBay's StubHub to become its official resale site.
The deal basically means that MLB can make a profit from two sales of the same ticket, once the broker and the scalper get the income.
In the age of TiVo and digital fragmentation, the stadium is a sponsorship platform, and baseball gives the game plenty of time to look around, as well as in-
The signs of the stadium will be displayed on TV and online sports programs.
The team has increased advertising space and flexibility, and large scoreboard is usually high
Play 30-HD video screen
The second point, plus programmable LED panels that surround the stadium, and replacement signage at the back of the home board sold by halfinning.
But the most important Stadium.
The basis of modern advertising revenue may be the naming rights of the stadium itself.
14 MLB teams are now getting $36.
Their park name is 1 million a year.
This figure does not even include undisclosed rights in the Denver Coors area and the grandfather of the company --
Named the park, it is located at the San Busch Stadium. Louis.
With Citigroup starting a $ 50% naming deal for the new Metropolitan Stadium, the total will grow by more than 0. 4 billion next year.
For 20 years, the deal is $20 million a year, almost half the cost of the team's new $0. 85 billion Baseball Stadium.
Traditionally, the baseball team also sold the rights to broadcast the game to local television stations.
However, more and more teams are building their own cable channels, called the regional sports network (RSNs)
They are given more advertising than simply selling their rights at a charged price, and they are also provided with a major brand marketing tool.
In 2006, 19 teams sold local rights for an average of $13.
Forbes reported 5 million pounds per person.
But teams with stakes in their own cable network do better: the Yankees get $67 million from their YES Network, new England Sports Network, which received $47 million from their sports network for $21 million York Road, some industry insiders believe that these data do not reflect the wider advertising revenue RSNs-
Reduce team exposure to MLB 21-
The rule of the century of income sharing.
Fortune reported that,year-
The old YES Network, co-owned by Yankee, Goldman Sachs and former owners of the New Jersey Nets, may be the ultimate brand extension of the MLB team.
According to SNL Kagan Media Research, the company earns $340.
2006 5 million-
Nearly $40 million more than the team generated that year.
As a media property, it could be worth about $3 billion.
About three times as many as its core content provider, a legendary series dating back to 1901.