By Daniel Roberts, reporter
FORTUNE -- Here's a surprise: Major League Baseball provides back-end streaming services for conservative talker Glenn Beck. In addition to his web channel, GBTV, it also powers almost all of ESPN3's online video. And the Webby Awards. And March Madness On Demand.
Headquartered in New York City's Chelsea Market, MLB.com has established a reputation as a technology powerhouse. Its successful stable of websites, apps and streaming video products is arguably the most advanced of any major league sport. And much like Amazon's (AMZN) Web Services division, which quietly provides cloud computing to other businesses, MLB.com has turned its powerful consumer brand into a healthy technology business.
How did that happen? In part, MLB.com has used new products to make the most of the collision of sports and social media. This year's World Series resulted in an average of 352,000 social media comments per game, according to social analytics startup Bluefin Labs. That includes public tweets, Facebook posts and blog comments. For Game 6 alone, there were 901,000 such comments -- crushing the NHL Finals and approaching the Academy Awards, which yielded 965,000 comments. (MLB.com does not disclose its financial performance; its ownership is shared equally among the league's 30 teams.)
A mega-popular app hasn't hurt either. The "At Bat" app was the highest-grossing last year in Apple's (AAPL) iTunes store. Across the iOS, Android and BlackBerry platforms it was downloaded 1.6 million times. The idea behind the app, says MLB.com CEO Bob Bowman, has been to provide everything a fan could possibly want relating to the game. And it does, or certainly gets close. Users can read editorial content from MLB.com sportswriters, listen to radio play-by-play or watch an instant replay within a few seconds.
Multimedia senior vice president Joe Inzerillo says the league is also seeing increased adoption of MLB.tv's "season pass," which allows people to watch entire games online and costs $120 per year. MLB.com's website, meanwhile, is being accessed more from mobile devices, such as phones and tablets, than from desktop PCs and laptops. (This chart shows traffic to MLB.com -- notice the spike in wireless access.) "The way it's looking for four years from now," posits Inzerillo, "is you have one connected device, just one thing, in your living room, and that's how you watch all of your online video content. Then you also still have a PC in the corner that you blow the dust off of when you want to write a letter."
MLB.com has been adding features to the At Bat app at a breakneck clip. One example: users can now "check into" a game, once they're physically near the stadium, and receive offers that might range from a seat upgrade to a 10% discount at the shop. They can also see aggregated tweets from others that are at the game. At three ballparks, the app even lets users order food and skip the line when they go to pick it up.
The question now is, how can MLB.com build on its success without making its products bloated or confusing? Communications vice president Matthew Gould says, "We push this technology to fans and let them use it as they wish, or not. We think it will enhance the experience, but we don't make it an intrusive thing."
Still, the company has to decide how to market and merchandise new features. "The question is always what will we do with the app marketing-wise," Bowman says. Right now, at $14.99, it's what he calls a "one-size-fits-all" package. He wants to add some premium options to the app, but seems to be at a loss, wondering, "How do you build on a soft good? Honestly, who do you even look for to tell you how to do that?" Answering those questions will be crucial to continued growth. The standard practice would be to create a handful of new features and offer them at an extra fee on top of the basic app, but Bowman is hesitant to do that.
One change that Bowman says is likely to come soon: a monthly subscription. "We probably won't charge in the off-season at all," he says, because "we don't want to annoy our customers." Currently, the app price goes down to 99 cents in the off-season, and returns to the full-season price when spring training starts. With a monthly subscription system, fans would have to re-up each month, but would have the luxury of skipping it for a while if their team is already out of the running, for example.
Ultimately, it is that steady stream of new ideas and new features that has most helped distinguish MLB.com. Whichever changes the company decides to make, it will be tinkering with a winning formula. Then again, any misstep might mean having that much more to lose.
A flock of former AOL staffers are about to launch a new gadget blog, The Verge. Their publishing model could end up looking a lot like their former employer's.
By Daniel Roberts, reporter
FORTUNE -- AOL hasn't had much luck keeping its top editorial talent. The exodus of writers from website TechCrunch earlier this year was only the latest embarrassing black eye for the struggling Internet company. Now, another former AOL editor MORE
Oct 26, 2011 1:54 PM ET
Nathan Myhrvold, the CEO of Intellectual Ventures, has become the face of patent litigation in the tech space. He told Fortune why his business is good.
By Daniel Roberts, reporter
FORTUNE -- The following transcript is edited from a phone conversation with Nathan Myhrvold, founder and CEO of Intellectual Ventures, often cited as the biggest firm among a group of so-called non-practicing entities or NPEs. Such companies frequently buy up patents without MORE
Sep 15, 2011 11:36 AM ET
Intellectual property law sounds like fodder for think tanks and PhD candidates — so why is Silicon Valley suddenly tearing itself apart over a seemingly sleepy subject?
By Daniel Roberts, reporter
FORTUNE -- If you feel like you've been seeing more news about patents than ever before, you have. In July, a consortium that included Apple, RIM and Microsoft made a move on Nortel's patent portfolio, outflanking Google. In August, Google hit MORE
Sep 13, 2011 2:57 PM ET
The videogame retailer has started accepting trade-ins of used Apple products -- and that may mean a bigger change for their business.
By Daniel Roberts, reporter
FORTUNE -- The news that GameStop stores are buying used Apple devices alongside traditional consoles and video games hit the Web this week and went viral almost immediately. Many bloggers began stating outright that the chain will also sell new Apple devices, such as the iPod MORE
Sep 9, 2011 3:34 PM ETThe maker of the handy defense weapon is putting a focus on its new video-surveillance system for police officers.
By Daniel Roberts, reporter
FORTUNE -- "Don't tase me, bro!" The phrase is familiar to pretty much anyone that was alive and consuming news in 2007: Andrew Meyer, a senior at the University of Florida at the time, shouted it before campus police shot him with a Taser ECD (electronic control device). A MORE
Sep 6, 2011 12:17 PM ET
At the annual BookExpo America this week, booksellers voiced mixed feelings about the news that Amazon's Kindle book sales have surpassed print, and some said they simply don't believe it at all.
By Daniel Roberts, reporter
FORTUNE -- New York's Javits Center was a crowded, noisy hothouse of handshaking and book signing this week at BookExpo America. Every publisher and imprint was there with marketing reps, editors, and authors on hand. The MORE
May 27, 2011 11:32 AM ET
By Daniel Roberts, reporter
Customers love Cognizant's C2 platform so much that they want to buy it. Too bad it isn't for sale.
FORTUNE -- Cognizant Technology Solutions, a tech outsourcing and consulting firm that serves huge companies, has built a corporate version of Facebook that pulls together a bunch of Web 2.0 tools such as Twitter feeds, employee-written blogs, and chat. It's the kind of collaboration tool many businesses say they'd love MORE
May 13, 2011 5:00 AM ETThe group messaging startup will offer slickly branded groups promoting bands, TV shows, and concerts. In other words: sponsors. Will users love or loathe the idea?
By Daniel Roberts, reporter
At the SXSW Interactive conference in Austin this month, while speaking about the recent heavy influx of platforms that offer group text messaging, Ted Livingston, CEO of KIK, told CNNmoney, "The four big [companies] that all the blogs talk about is us, MORE
Mar 28, 2011 9:00 AM ETNow that it's set to become part of AT&T, many T-Mobile customers are wondering, "Will they let me get out of my contract?" It's the question T-Mobile doesn't want to answer yet.
By Daniel Roberts, reporter
It seems anyone with a cell phone contract has had the thought, whether due to owning an antiquated phone, moving to an area with no service, or dealing with an umpteenth dropped call: "When is my MORE
Mar 23, 2011 12:53 PM ET