Almost a Million Fans Are Willing to Buy Subscriptions to Watch

question 12

Multiple Choice

Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com.That business is worth more than $100 million to MLB.But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games.Which of the following is likely to occur between MLB and broadcast television?

• A) Horizontal market share
• B) Lateral channel takeover
• C) Niche market conflict
• D) Channel conflict
• E) Market share conflict

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Definitions:

Earnings Before Interest

Earnings Before Interest, often abbreviated as EBI, refers to a company's profit before any interest expenses are deducted. It shows the financial performance from operational activities.

CCA Class

Refers to a classification under the Canadian Capital Cost Allowance that groups assets of a similar nature for depreciation purposes.

Net Working Capital

The gap between a business's current resources and its present debts, showcasing its financial stability in the near term.

Net Present Value

A valuation method that calculates the present value of all future cash flows of a project or investment, net of the initial investment cost.