Monetizing Sports Content Online.

Led by the trailblazing efforts of Major League Baseball, other top US sports leagues have made huge strides in streaming live-game content on a paid basis. MLB has built its initial online streaming package into a paid content franchise that in 2009 generated at least $40 million, according to the Sports Business Journal.

The potential of online streaming is also sinking in at the NFL, NBA and NHL.

To avoid alienating broadcast partners, many leagues prevent streaming of in-market games and make other efforts to curb cannibalization of their other revenue streams. But fans are demanding platform-agnostic access to games, and sports leagues are increasingly willing to provide it.

“Team loyalty is one of the determining factors in deciding whether to monetize sports content through advertising or fees,” said Paul Verna, eMarketer senior analyst and author of the new report, “Paid Sports Content: Let’s Go to the Video Stream.” “Events that draw widespread popular interest but are not necessarily fan-base-oriented—the Olympics, US Open or March Madness—lend themselves to ad-supported streaming. By contrast, team-oriented sports such as baseball, football, basketball, hockey and soccer are well suited for paid systems.”

Increases in smartphone ownership and mobile data plan subscriptions are creating a growing demand for streaming sports video content to cell phones and other portable devices. US sports leagues are rising to this challenge by extending online streaming packages to mobile platforms. The NFL offers this capability as a free add-on to its Supercast online streaming service. The NBA and MLB sell mobile apps that include access to select game content.

The proliferation of paid streaming content by US leagues and the huge online audiences for ad-supported sporting events such as the US Open tennis tournament, the Olympics and March Madness point to a shift in consumer behavior. As people get more comfortable with the notion of watching games online, leagues will be able monetize sports content through a variety of paid and ad-based models.

For more information at http://www.emarketer.com