YES Network Marketing Follies for Live In-Market Streaming Package

“Watch the Yankees when you’re locked out of your house?” I know that’s not the first thought when I’m locked out, it’s a distant second, with everything else behind gaining entry! Yet, that is how YES Network is pushing their product to the market place.

When the Yankees, YES, and MLBAM announced the first live in-market streaming deal in July with a price tag of $39.95 for the rest of the season or $19.95 per month, it immediately raised the question of who would pay for this and what would they gain. MLBAM and cable nets are absolutely right in that they should charge for it out of the gate, and prevent the issues every other media business that moved online with free content now faces. However, subscribers have to be Cablevision (and now Verizon) customers with both Internet and cable service. My question, and one YES should consider as they market the product, is one would someone already paying for network at home, pay a significant fee to watch games online all season?

The marketing plan does not communicate a value proposition to its audience, a reason why they should pay additional for this service. Further, it’s creative leaves much to be desired, and I don’t think I’ve seen any distribution outside YES and its website (though I’m not a Cablevision or Verizon customer). MLBAM offers a tremendous online game package with great features and high quality feeds, YES should be touting what you don’t get with a regular cable subscription at home. Talk about the live stats on the side, the fantasy player tracker, the ability to call up highlights on-demand, social media integration to discuss the game with fans, and even PIP if they are MLB.tv subscribers.

Next, consider when customers will use this service. According to YES, its at the beach or when you’re locked out. Maybe I’ve been locked in a cave, but I’m not seeing many laptops in those situations (leave mobile out for now), nor do I feel the Yankees game is top of mind in either situation. The ads do mention work, which is likely the number one place, but what about in the house when your wife/parents are watching something else, or at school, or stuck traveling – or you want to track stats and interact during the game. Build out realistic scenarios, then develop creative that presents them in a more humorous way – similar to how the NCAA tournament employs the boss button. A key missing ingredient in the marketing is that I never see someone watching the games on their laptop in any realistic situation. All YES shows are generic Yankee highlights, if you watch it without sound it’s not completely evident what the product is.

One problem could be that YES is marketing a product that does not yet exist – single PPV games. Without any added value, customers will always opt for TV over online, making a full season or even monthly package less realistic. Then the marketing campaign touts one-off scenarios when the product is useful (beach, etc.), yet you can’t buy a single game for say $2.99.

Two other points on YES product roll-out. First, I mentioned the poor distribution earlier, but placement on their website is abysmal. I actually looked at the site for a good minute or two and thought it was not on the homepage, until I finally found it at the top, with the same colors as the background and no distinguishing creative. Not going to attract fans who are not looking for it. Second, the team should offer fans a chance to sample it, say one game free for all eligible subscribers, or put a time constraint. Get people to experience it, try it, live it – and win them over that way. Make completing a survey a stipulation for the free access, and leverage that data for next year’s product.

Under the current conditions, I don’t see how this product is generating much subscription revenue at this point. Though, it does have promise if executed correctly.

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2 Responses

  1. Buying a Slingbox is a better value, over the long run. If you already subscibe to cable and have a broadband connection, that is the way to go. The Yankees on YES package does not offer games on WWOR, FOX or ESPN.

    How does YES and MLBAM compete with that?

  2. Agreed, they need to provide a more compelling reason to watch online than just watching when you are not near the TV, since viewers have other options and its debatable on what the willingness to pay is.

    They compete by making the offer more enticing. Make it more than just watching the game (interactive, stats, replays and highlights of any play, etc) and introduce micro-payments (single games).

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