....Gaining MLB could offer a significant boost for Microsoft, which competes with RealNetworks over video-streaming software. The hefty premium paid for an unproven video-streaming model was not surprising to some analysts.
"I think, to an extent, it's Microsoft being Microsoft," said Michael Goodman, an analyst at The Yankee Group. "It's a cost center for them to acquire this content, and if it's a money loser, it's a money loser. What it gives them is an anchor program. It gives them a high-profile piece of programming to build around."
The deal also pushes the envelope on the price online distributors must pay for popular programming. Just like television networks that pay billions of dollars for rights to National Football League or the Olympics games, the Internet is quickly becoming such a valuable medium for sports fans that Web portals are more willing to open their wallets. [CNET]
Content is sorting itself out on the Internet and access to live sports appears to have premium value.
Article comments
1 - Mac Diva
Acronym soup! One of these days, let's try to write a headline that includes nothing but-:).
An underside to Microsoft and AOL's streaming deal in regard to video is that none of the ones I've encountered will run on a Macintosh.
2 - Eric Olsen
Good one about the acronyms! I don't understand why they haven't figured out how to make all Internet products and services complatible with all platforms - it seems stupid to put limits on your customer base.
3 - Mac Diva
It sometimes seems that Bill Gates' disdain for Steve Jobs knows no bounds, and we poor Mac users pay the price for that. One would think it our fault that Steve is a cool guy who can dance and Bill still wears pocket protectors and unclean undies.
4 - TDavid
Nice to see the price drop for the live MLB radio. $14.95 for the entire season is a great deal for baseball fans (like me) who enjoy listening to internet radio. This had been one of the few reasons I used the Real player.
5 - Eric Olsen
TD, I agree that $14.95 for the season sounds pretty good. Live is good enough for me anyway, I don't need an archive.