MLB New Media Goons: A study in entrepreneurial success

A few days after we learned that the MLB Extra Innings package will fall exclusively on DirecTV’s lap this year [why haven’t we heard anything on DISH?], now comes the news that MLB’s New Media Goons have indeed found ways to supplement the sources of revenue they eliminated on that infamous deal.

From Apple Insider:

Apple Inc. said friday it plans to embrace the 2007 Major League Baseball season by offering highlights for the 2007 season on its ubiquitous iTunes Store, giving fans the ability to catch all the action of their favorite teams anywhere, anytime.

MLB video programming on iTunes will include a daily 25 minute “MLB.com Daily Rewind” highlight show and two weekly “Games of the Week,” featuring full versions of the best games from the National and American Leagues.

Customers will be able to download individual episodes of “MLB.com Daily Rewind” and each “Game of the Week” for $1.99, or purchase a Multi-Pass for a month of Daily Rewind shows for $7.99 or a Season Pass for every “Game of the Week” at just $19.99.

“We’re thrilled to be teaming with iTunes to give baseball fans access to MLB highlights via the world’s most popular online TV store,” said Kenny Gersh, senior vice president, business development of MLB Advanced Media. “We’re excited that baseball fans now have the opportunity to enjoy America’s favorite pastime in a unique way by taking MLB with them on their computers and iPods wherever they go.”

So the season preview was supposed to be free. I’m sure it was; too bad I was too late to the party, and, even though it’s clearly visible on the front page of the iTunes store (first image to the right), it really wasn’t available (second image below).

Whatever the case, I have to think this new entrepreneurial initiative on behalf of baseball has its merits. I dunno if anyone noticed, but last year, Baseball was offering per-game downloads at $3.95 a pop, but now they’ll offer a “Game of the Week” on iTunes for almost $2 dollars less.

But placed in the context of the recent developments, going as far back as last year, when MLB New Media decided to pull podcasts from the iTunes store, it’s a puzzling move.

One thing’s clear; these New Media Goons sure know how to make money.

I’m sure Steve Jobs and Apple had a stronger sense of self than iNDemand and its cable parents. Regardless, the content being offered in iTunes does not, and will not, supplant the experience of watching live baseball in your living room.

This is text-book capitalism, explore new sources of revenue for your already-sold product, maximizing profit to the fullest.

I just don’t see where benefit to the fan…er… consumer, really is.

UPDATE [Sun. 04/01 - 10:20 a.m.] : I had a chance to read Joe Nocera’s Talking Business column in yesterday’s New York Times. Here’s the link, but unfortunately, it’s a TimesSelect column, so you’d have to pay for it (or have an email address with an .edu extension to get it free).

Nocera basically recaps the MLB / DirecTV deal nicely, giving it good light in business terms, but, much like everyone else who opined on this deal, he concludes that it’s a “dumb” move on behalf of Baseball. Yes, he said dumb. I’ll share some passages with you, fellow readers, after the jump.

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