MLB's New Blackout-Free Streaming Service May Already Be Dead

Major League Baseball has been, optimistically, hoping to mostly end local streaming blackouts within the next few seasons. 

The league announced in February that it intended to launch its own streaming package of games, as soon as 2025. Importantly, that service and package would be blackout free in local markets.

READ: MLB Could Soon Be Launching Its Own Blackout-Free Streaming Package

While MLB currently operates the MLB.tv service, it infamously restricts users in a team's region, making it mostly useful for superfans or fans who don't live in their favorite team's local market. But the 2023 bankruptcy of Diamond Sports Group, the company behind the Bally Sports networks, seemingly opened the door for the league to end the frustrating, archaic rules. 

The league already took over broadcasting games for several teams, notably the San Diego Padres. And Commissioner Rob Manfred apparently believed during spring training that Diamond Sports' bankruptcy would essentially end the company, giving the league control over the media rights for around a dozen more teams.

New developments around Diamond's bankruptcy though, have put that plan in jeopardy.

MLB commissioner Rob Manfred. Photo: Stephen Brashear-USA TODAY Sports

Rob Manfred, MLB, May Be Forced To Return To Regional Sports Network Model

Evan Drellich from The Athletic reported that the current expectation is that Diamond will, in fact, emerge from bankruptcy thanks to a new plan backed by Amazon.

While that would throw a wrench into the league's potential streaming package, some analysts he spoke to believed MLB would accept a new deal with Diamond. Streaming services are notoriously unprofitable, and owners enjoy the long-term commitments and guaranteed paydays of television media deals. 

"Given the economic struggles of stand-alone streaming, it’s pretty obvious these regional sports networks have to survive and that distributors want them, and that they’re the best way for the teams to get economics from local rights flowing to them, even if it means there’s no growth, or even in some cases some walks backwards today or probably in the near future," media consultant Patrick Crakes told Drellich. "And baseball’s behavior says that."

While it might be good for owners' pockets, it could be a frustrating return to form for in-market fans without cable packages. MLB has viewed the enhanced reach that it could get from streaming-only packages as being worth the trade off of lower guaranteed revenues. But as the Padres, Rockies and Diamondbacks continue on with MLB operated broadcasts, the league may be getting a more clear financial picture. One that would make rejuvenated Bally Sports networks more desirable.

It seemed like blackouts could be a thing of the past, for half the league's teams anyway. Sounds like that might have been too good to be true.