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August 10, 2009 9:00 PM PDT

MLB beefs up Roku's rotation

by Erica Ogg
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MLB streaming Roku (Credit: Roku)

In its bid to put together a roster of compelling content, Roku has just acquired an ace.

Starting Tuesday, the set-top box--known to many as "the Netflix box"--will begin streaming Major League Baseball games. As with the current Netflix arrangement, you have to be a subscriber to the service, in this case MLB.com Premium, to access the content that normally would be available only on a PC or iPhone.

And while this is a boon to baseball fans, it's an even more important development for Roku. MLB.tv Premium is the first live content available on Roku's device, and by bringing that from the PC to the TV, the 50-person Saratoga, Calif., company is beginning to differentiate itself from similar consumer electronics products.

Roku currently has access to the Netflix Watch Instantly queue, as well as Amazon Video on Demand, which allows for rental and purchase of movies. More recently, Roku added content from Blip.TV and MediaFly, two content aggregators, for videos and podcasts.

MLB.tv will work the same way. It will be accessed via a new pane that can be reached via the small remote. Once a customer's account is synced, any live, out-of-market (as in, not your home team) game across the league can be seen, with the choice of both the home and away team's local broadcast feed. Games up to one week old are available in the archive, and previews appear of each team's scheduled games up to a week in advance.

The picture isn't perfect, but it's quite good, and it's about what you would get if watching the game on a computer. The quality will depend mostly on the type of connection each customer has (either wired or wireless) running from the Roku box to the Web. But MLB and Roku tries to make the experience a bit more consistent by using Swarmcast, an adaptive bit-rate technology that detects the connection speed and adjusts the video quality accordingly, to prevent stuttering or buffering. The eventual goal is to create "an experience that you can't tell the difference from the TV," said Tim Twerdahl, Roku vice president of consumer products.

MLB has led the pack of major sports leagues when it comes to its application of technology. The league's online subscription package currently counts 400,000 subscribers. It also offers a mobile version similar to what's available on Roku now, called At Bat, for the iPhone. But that application costs $9.99 in addition to a subscription package.

But while this is certainly exciting to fans of professional baseball, MLB on Roku doesn't have the broadest appeal. Though baseball has been referred to as "America's pastime," that hasn't been true for a while--and the amount of casual fans who attend games is exponentially higher than devoted followers who pay for MLB.tv Premium. So on its own, the MLB.com streaming isn't likely to add a huge amount of Roku customers.

"It's not going to be an app for everyone," said Ross Rubin, director of industry analysis for The NPD Group. "It may not drive huge new groups of consumers to the platform, but it is significant because it's something different than what we've seen most companies in this category do."

Live content like baseball games is something Roku needed to take on not to get lost in a sea of increasingly Web-connected devices for the living room. Before adding MLB, the main draws of the $99 Roku box were its Netflix and Amazon connectivity. But bigger names like Sony, Microsoft, Samsung, TiVo, and others have been adding TVs, set-top boxes, Blu-ray players, and game consoles that can stream movies and TV shows from Netflix and Amazon, as well as content from social applications Flickr, Facebook, and Twitter.

The downside to those, of course, is they cost much more than $99. But if you already own an Xbox 360 or a TiVo, you're not going to need to buy an extra device like Roku. That's where the MLB deal comes in.

"They've really evolved this device quite nicely from something that was essentially a one-trick pony to a lot more," said Michael Gartenberg, vice president of strategy and analysis at Interpret.

Roku MLB live streaming

All out-of-market games can now be streamed live on Roku.

(Credit: Roku)

The evolution was enabled by a software development kit created by Roku that it is sharing with partners like MLB and others that allow third parties to create an application that makes their content available on the $99 box. It's been released privately to a few but will have a public debut soon.

There's also a lot more to come, if you ask the Roku guys. "People didn't think live (content) was possible" on their device, Twerdahl said. And now he has his sights set on more live content and other types besides just TV, movies, sports, and podcasts.

"We're trying to diversify," he said. "We still need things like photos and music." Twerdahl said to expect at least eight more content partnerships before the end of the year.

As The Business Insider blog noted recently, it's conceivable that the next partners could be streaming music companies like Pandora and Last.fm (owned by CNET News publisher CBS Interactive); photo-sharing site Flickr; and more Web video providers, like Revision3 or YouTube.

Those are all companies that have done a decent job of distributing themselves on a variety of platforms. And they offer what those in the industry would call "premium" content. But the all-star of video content, the one that every team in the connected device business would love to sign, is still a free agent. Whoever gets Hulu onto its device first will have a huge advantage.

"You look at the number of attempts people have made to try and marry Hulu with the television set, through all sorts of unorthodox methods...what would the demand for Roku be if Hulu partnered with it?" said Gartenberg.

Even if it was a subscription service (Hulu as of now is currently free), that would add a whole new dimension to a device like Roku--where TV content would be on demand on the TV screen, and customers might be able to cut the cord completely on cable or satellite service.

"If you could deliver a PC-quality Hulu experience to a large-screen television set, that's where things get interesting," Gartenberg said. "It's not the number of content partners, but the premium content. Consumers aren't stupid, and aren't interested in mediocre content."

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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by Nael August 10, 2009 10:35 PM PDT
I like the Roku business model but imagine having to pay for each content provider that they introduce, Amazon Video, Netflix, and now MLB tv. They have to come up with a new business model that unlimited on a monthly basis.
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by DeAxes August 10, 2009 11:28 PM PDT
Nael - I wouldn't mind at all. If it means an ala-carte setup with all-you-can-eat for a specific group of services, I'm all for it. So far I've been living with Hulu on my computer, Neflix on my Xbox360 and MSNBC as podcasts.
Its easy if you're willing to try hard to figure out how to make it work. The hard part is making it easy. If they make something that parents can figure out and is a substitute for cable, I'm all for it. Theres lots of demand there.
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by deancollins August 11, 2009 5:16 AM PDT
it's great to see MLB.tv implementing innovative functions, things like this and http://www.LiveBaseballChat.com are changing the way fans interact with each other while watching the games online.

Cheers,
Dean
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by deancollins August 11, 2009 5:19 AM PDT
It's great to see MLB.tv implementing innovative functions, things like this and http://www.LiveBaseballChat.com are changing the way fans interact with each other while watching the games online.

Cheers,
Dean
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by jacomo August 11, 2009 6:25 AM PDT
What is still missing in this entire OTT space is how the content providers (Netflix/Hulu/Amazon) and the hardware receiving devices (Roku/TIvo) provide a means (tools) for the local Broadband Service providers to build a viable business case for making money in the OTT markets.

Jim A
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by August 11, 2009 6:25 AM PDT
I've had a Roku box since about a month after they came out. I love it for the Netflix viewing which has been steadily improving. Since I already have a Netflix account, I have little justification for paying money for Amazon rentals. I have had nothing but headaches from both cable companies and satellite companies during my life (although DirecTV seems to be getting a smidgen better lately). I would LOVE to have an ala carte option for my TV viewing and since cable/satellite seem to have little or no interest in it, I hope that Roku and Hulu find a way to work something out, even if it means ala carte charges for cable channels. I don't really understand why the cable networks who really control a big chunk of Hulu don't want to find viable ways to go direct to the consumer instead of having to work out negotiations with the cable/satellite companies. I would rather pay $30/mth for the 10 channels I really want vs. $50 for 100 channels, nearly all of which I won't watch. The MLB.tv addition will only really be a great breakthrough if MLB finally works out a deal to allow home team coverage. Personally I don't think Fox Sports has much to worry about since many people get HDTV primarily for the purpose of watching sports.
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by MitWolram August 11, 2009 7:23 AM PDT
While I love the Roku players (I've had the Internet Radio Roku for 2 years), I can watch Hulu and any other online TV program service on my HDTV through my computer. I purchased a fairly cheap HP, put in a $25 550W power supply and a really nice video card (NVidia 960 GSO Overclocked - $165)... run HDMI out of the video card directly into my 47" HDTV and presto... any show I can find I can watch. Also, almost all the major channels have their TV shows available to watch at their websites, so realistically, I could drop my cable if I wanted to.
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by Spimby August 11, 2009 7:49 AM PDT
As someone noted above, a-la-carte viewing is much more appealing to many people (if not most) than paying $80 a month for 5 channels you actually view. Roku could offer HBO next...or a Discovery Channel package. Think about it...If you figure you pay $80 a month for cable, you could pay up to $5 a month for 16 channels. Go home and see if you can find 16 cable channels you actually watch. This is what congress and consumers have been clamoring for for years. The cable companies would soon be relegated to being Internet providers only.

The only barrier for Roku is the licensing agreements, which could be difficult. But they'd be smart to get on this early and get the prime mover momentum behind them, as TV manufactures are beginning to build Netflix streaming into their TVs and eat away at their market. If they're not seen as 'the one and only box you need' they will soon be another set-top box you don't need. I love my Roku box BTW.
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by acebojangles August 11, 2009 9:24 AM PDT
Cutting cable and getting the tv I want online is attractive to me, but not being able to watch live sports is a big sticking point. Based on this story, maybe that's going to change.
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by gefitz August 11, 2009 9:50 AM PDT
As far as difficulty with license agreements...the content providers would have that problem, not Roku. Like the example of HBO: if HBO offered their content to Roku, HBO would have to worry about the studios. Netflix already pays the studios for content.

Roku would indeed be smart in selling their wares immediately to such companies as Vizio (already ready to release TV's with 802.11x connectivity) and others who manufacture TV's...if they could offer Roku as an option on their sets, boy wouldn't that steer some traffic their way!
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by jlnjcb August 11, 2009 10:45 AM PDT
as a canadian, i would LOVE to see NHL games on netflix. if so i would actually consider cancelling my cable subscription.
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by whoswhos August 11, 2009 11:53 AM PDT
MLB, boring...... but atleast they are on the right track.
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by lordnykkon August 12, 2009 12:54 PM PDT
This is great! I have an mlb.tv account already. I love baseball, but my favorite team is out of state, which means I usually can't watch them on TV (only get the local team). My hope is that the NFL, NHL, NBA, NCAA, and others will wake up to the possible revenue sharing and follow the suit with the MLB on devices like Roku.

Now, I too have a setup which streams mlb.tv from my computer to my TV. However, my family often thinks it takes too many steps to start watching a game, including powering on the computer, cloning the desktop to the TV via the gpu, etc. In this case, the Roku player would probably be more intuitive for them. I imagine cutting out the middle man (the computer) to select an Amazon or Netflix vid would make them giddy as well. Though I am more patient, I realize for my family and for many others, the TV experience will always be about getting to the content as quickly and easily as possible.

I echo the desires of other commentators; I've been wishing for decades that media companies could come up with a way to bring consumers their content a la carte. But, it's not likely to happen. Though bloggers continue to suggest that Hulu and others will ultimately help consumers cut the cord from cable and satellite, this is an unfortunate assumption. Content providers, including the 4 major TV networks, make a mint on transmission deals with cable/satellite. The rest comes from adverts. As soon as cable/satellite/advert companies start complaining that Hulu is drawing too many subscribers away, pressure will be placed on these networks to strip down the Hulu experience or change its model to a paid subscription. I think of what has recently happened to Pandora. As is, I intend to enjoy Hulu for as long as it lasts, but reading the dismal TV network upfronts and low advert revenue, it's guaranteed Hulu will not be free much longer.
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by AMK0326 August 13, 2009 6:38 PM PDT
I watched the RED SOX/TIGERS game via ROKU this afternoon, and the performance was flawless. Great picture, no stuttering or buffering issues. Absolutely perfect!
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