It was January 29, 2010. At the Chelsea, Manhattan, offices of Major League Baseball Advanced Media (commonly referred to as BAM), a team of executives, product managers, and engineers had gathered in a fifth-floor conference room as Bob Bowman, BAM’s chief executive officer, energetically walked in to lead their weekly mobile meeting. Among the team members were Chad Evans, director of mobile product development, and Tracy Pesin, director of mobile engineering, who had just returned from a three-week assignment at electronics giant Apple’s headquarters in Cupertino, California – a visit that culminated in Evans and Pesin sharing the stage with Apple’s chief executive officer …show more content…
BAM was widely regarded as having the best league website and being one of the most remarkable success stories in digital media in general.1 Started in 2000 with a relatively minor investment from each of the 30 Major League Baseball (MLB) teams, BAM now generated around $440 million annually from ticketing, paid content, advertising, and merchandising. In a digital environment in which most media businesses had failed to find viable business models, BAM, in 2009, had amassed well over 50 million unique visitors per month and 1.5 million subscribers paying for multimedia content delivered via the web, including half a million subscribers for BAM’s flagship video product MLB.TV priced at $100 or more a season, while the company’s At Bat Apple iPhone application was the second-highest selling “app” in Apple’s iTunes store in 2009, with two million downloads and 60 million videos streamed since its July 2008 …show more content…
“You just don’t know in this technology world what is going to take hold,” concluded Bowman, as he reached for his third Diet Coke. “The iPhone has been a great success, which led to strong sales for our At Bat app, and the iPad could become equally important. We have got to get this right.”
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Professor Anita Elberse and Brett Laffel (MBA 2010) prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.
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