World Series television ratings are not going well. This year, in fact, the ratings dropped to the lowest level of the Major League Baseball history. Despite those negative figures, however, it looks like the industry is going really well in economic terms, thanks to some successful innovations.
Clayton Christensen just published an interesting article over Forbes magazine titled “An Innovation Home Run”. According to Christensen the major innovation is coming from the deeper connection that clubs are building with their core consumers: “at a local level, teams have experimented with revenue streams such as forging lucrative partnerships with regional cable networks (or, in some cases, creating their own networks), courting corporate sponsorships, building in-stadium restaurants and luxury boxes, and launching tie-ins with local merchants.”
The article lists some reasons for the successful innovations:
- The baseball league moved before it had to
- Executives tolerated early losses
- Clubs were willing to invest in “good enough” solutions
- Intense experimentation with different revenue models
You can read the full article here.