Yesterday, the National Hockey League and Major League Baseball Advanced Media announced a multi-faceted 6-year deal in which MLBAM will pay $600 million to take over distribution and operations of NHL’s GameCenter LIVE and Center Ice online subscription services (including via pay-TV operators), manage all of NHL’s web sites, manage all of NHL Network’s operations (including taking over ad sales) and jointly develop new digital products. As part of the deal, NHL is reportedly getting a 7%-10% stake
in MLBAM, which is also reportedly going to be spun off (finally) from Major League Baseball. (clarification, per MLBAM spokesman, NHL's stake is in BAM Tech, the technology arm of MLBAM)
That’s a mouthful, but what it amounts to is a major expansion in MLBAM’s scope of business, instantly morphing the company from being primarily a provider of technology services supporting rights-holders to being a multi-platform distribution company in its own right. As such, MLBAM may have just become the most disruptive force in sports TV, signaling to every broadcast and cable TV network which has an interest in sports TV - from CBS, ABC, NBC, ESPN and on down the line - that the ground just shifted underneath them. Here’s why.