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While cable has become the dominant media outlet for baseball, offering 47% more games than broadcast in 2002, it is inheriting a sport in flux. Gone are the days of ever-increasing ratings. Even top markets are seeing declines, and the soft economy is taking its toll. The 10%-to-12% annual growth in team media revenue ended during the current ad slump. We estimate increases will be in the far trimmer 5%-to-8% range for the near term. The upside here is MSOs may finally gain the clout to challenge ever-spiraling franchise fees.

MLB LOCAL MEDIA REVENUE PROJECTIONS MEDIA FEES PER GAME

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For more on the economics of baseball, see "Media Sports Business" at www.kagan.com/cw.

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Cable World, March 17, 2003

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