We have extensively covered Major League Baseball Advanced Media (MLBAM) here at SportTechie, and we have slowly seen it turn from just the online branch of the MLB to a behemoth in the world of online content, streaming and over-the-top content (OTT).
The MLBAM has provided backend online service for organizations like the NHL, ESPN, HBO, the WWE and the PGA Tour.
Yesterday, Forbes’ Maury Brown broke the news that the board of directors of the MLBAM approved the creation of a new media company called BAM Tech to take over all non-baseball related services.
BAM Tech will be the cash cow of the MLBAM, seeking out partners that need a boost with their online presence or the creation of an OTT system, which is essentially the ability to stream content directly to fans or users without a service provider.
All 30 MLB owners will be the majority owners of BAM Tech, with the NHL also holding a 7-10 percent minority ownership due to the recent partnership.
BAM Tech is already valued at an estimated $8 billion. This number will surely grow now that BAM Tech is not tied down to the MLB, in a manner, and can operate of its own accord.
While many believe BAM Tech is created merely to put some more money in the pockets of MLB owners, perhaps it will be a positive deal for the sport of baseball. Baseball has an increasingly aging audience, and the MLB may have a bit more flexibility in its ability to capture fans with this different source of revenue.