US sports bring in webcast charges

Fan will no longer be able to hear US baseball games free

US baseball fans will no longer be able to listen to free audio broadcasts of their favourite teams via the internet.

Major League Baseball, which has just revamped its website, will now charge a subscription fee of $9.95 per season for fans to listen to radio broadcasts of games.

Basketball already charges for internet access

The move follows increases in the subscription fee charged by the National Basketball Association, which raised the charge from $9.95 to $29.95 this year for viewers who want to follow live broadcasts of professional basketball games.

The broadcasts are aimed at "displaced fans" who live outside the range of their local radio stations.

We want to move towards treating internet content the way we treat TV content

Major League Baseball

But it represents a major shift in strategy by the sports industry, which has traditionally offered free games in order to attract more fans.

"We want to move towards treating internet content the way we treat TV content," said Bob Bowman of Major League Baseball's online content division.

In addition, MLB is also licencing its online broadcasting to RealNetworks, who will offer a more sophisticated video service, allowing fans to download and assemble game highlights, for $4.95 a month.

Pressure on internet revenues

RealNetworks has guaranteed MLB $20m over three years as part of the deal.

Among major American sports, only American Football now remains free to internet fans.

The shift in strategy follows the growing losses at internet sites, which have tried to rely on advertising and commerce for revenues.

Content providers are now looking at the subscription model to provide a more secure source of income.

"Companies that believe they have quality content are going to look for another revenue stream, and the subscription model is one," said Robert Hertzberg of Jupiter Media Matrix.

Online revenue struggle

However, the strategy has its risks, as internet users traditionally expect free content.

Among major newspapers, only the Wall Street Journal has succeeded in launching a subscription service on the web - and that does not yet break even.

However, the struggle over sporting revenues on the internet has intensified in the past year.

During the Sydney Olympics, NBC, which owned the rights to the television broadcasts, blocked websites from broadcasting clips of the games.

The spread of high-speed, broadband internet services, which will allow good quality streaming video on demand, is expected to enhance the value of internet sporting rights.