⚾ MLB’s Media Reset: Turning Local Games into a National Streaming Platform
Why baseball’s local media shake-up could be the foundation for a national direct-to-fan platform—and a new way to invest in sports
U.S. sports team valuations remain elevated, but the local media models that supported them are under pressure. Major League Baseball, with its vast volume of content and deeply rooted regional fan bases, is exploring a new direction—one that could reshape how fans engage, and how investors participate in the economics of sport.
In a recent CNBC Sport interview, RedBird Capital’s Gerry Cardinale put it bluntly:
“Don’t buy a team. Build the platform.”
Instead of competing for club equity at rising multiples, Cardinale advocates building a digital-first business that acquires local media rights from multiple MLB teams and delivers games directly to fans. A “Netflix for Baseball” may sound ambitious, but the strategy reflects wider trends in both media and sport.
The Shifting Foundations of Baseball Media
For years, Regional Sports Networks (RSNs) underpinned MLB’s local media model, collectively generating more than $2.2 billion annually. Top clubs like the Yankees and Dodgers earned between $50 million and $100 million per yearfrom these deals.
But the broader cable ecosystem is evolving. Between 2015 and 2021, U.S. pay-TV penetration declined from 76% to 56%, eroding RSN viewership and weakening their financial position.
Diamond Sports Group, which controls local rights for 14 MLB teams via Bally Sports, emerged from Chapter 11 bankruptcy in January 2025, rebranded as Main Street Sports Group. While it reduced its debt significantly, legacy rights contracts and court oversight may still constrain flexibility.
Warner Bros Discovery also exited the RSN business, returning team rights in exchange for debt relief.
This week, WBD announced a formal corporate demerger, separating its studio/streaming assets (HBO, Warner Bros) from its cable network portfolio—reflecting an industry-wide shift away from traditional linear models.
MLB and ESPN have agreed to end their national broadcast deal after the 2025 season, citing uncertainty in regional distribution.
Why Now: From Fragmentation to Direct Control
MLB’s greatest strength—its enormous volume of games and national footprint—is also what makes its media model unwieldy. But that same breadth gives it a rare opportunity to rethink distribution from first principles.
By consolidating local media rights into a single platform, MLB could:
Eliminate blackout restrictions and improve access
Build a direct-to-consumer (DTC) relationship with fans
Enable personalised advertising, merchandising, and content
Unlock recurring revenue through subscriptions and sponsorships
RedBird Capital, already an investor in YES Network (Yankees) and NESN (Red Sox), is reportedly in discussions with partners including Amazon to bring this platform vision to life.
The Numbers That Make the Case
Streaming potential: MLS surpassed 2 million subscribers in 2023. NBA League Pass continues to grow at ~50% annually. MLB.tv logged 11.5 billion minutes watched in 2022. A centralised DTC offering that captures even 10–15% of domestic MLB fans could yield 4–5 million subscribers, generating over $1 billion annually in recurring revenue.
Sponsorship upside: MLB teams recorded $1.9 billion in sponsorship revenue in 2024, up 55% year-on-year(SponsorUnited). Nationalised inventory could unlock an additional $200–300 million per year by enabling scale and targeting.
Advertising economics: MLB Advanced Media supports premium CPMs of $65–70+, well above the scripted TV average (~$47), driven by live engagement and multi-format ad units.
Fan commerce and data: With tools like “My Daily Story” (powered by Google Cloud), MLB already personalises engagement. A centralised DTC platform would enable monetisation across merchandise, ticketing, betting, and loyalty programmes at scale.
Risks and Operational Hurdles
Revenue-sharing politics: Larger clubs (Yankees, Dodgers, Cubs) will expect a greater share of centralised revenues. Smaller teams may resist, especially if current RSN deals remain more lucrative.
Legal and structural constraints: Although Diamond Sports has exited bankruptcy, several long-term rights contracts may still prevent rapid consolidation.
Product fit: MLB’s traditional TV audience is older. For the DTC model to succeed, the platform must be intuitive, engaging, and optimised for younger, mobile-first users.
Echoes from Europe: Ligue 1’s Parallel Path
The idea of league-controlled media platforms is not unique to MLB. In May 2025, we analysed Ligue 1’s exploration of a direct-to-consumer model following the collapse of its broadcast deal with DAZN.
While the ambition is similar—own content, engage fans, diversify revenue—the context is different. France’s smaller domestic market and more fragile football ecosystem make platform economics far more challenging. Ligue 1 faces steep content production costs and would need at least 1.5 million subscribers just to approach breakeven, according to Berkida modelling.
By contrast, MLB operates in a wealthier, larger, and more advertiser-friendly market, with deeper content inventory and a stronger existing digital infrastructure. While not without risk, the economics of DTC look more viable in this environment.
Other leagues in Europe are exploring similar moves, but success will likely depend on market size, pricing power, and the ability to create differentiated content.
🧠 The Berkida Take
This is more than a media rights pivot—it is a structural opportunity to reframe how sport is monetised in the streaming age.
For investors, it also represents a compelling way to participate in the upside of sport without owning a team. As club valuations soar and operating margins compress, platform ownership—of rights, data, and distribution—offers an infrastructure-like model with recurring revenue, fan engagement, and scale.
MLB is uniquely positioned to lead this shift. With content volume, national reach, and a willingness to experiment, it may become the first major league to fully control its media engine. And that could set the tone for how sport is structured and capitalised for the next decade.
📩 Interested in rights aggregation, fan monetisation, or sports media infrastructure? We’re tracking it closely—let’s talk.