In July, I wrote a lengthy explainer about why and how MLB blackout policies work. In short, they are not overall policies of Major League Baseball; they are agreements signed between each team and their Regional Sports Network. The exclusivity compels cable providers in a wide territory to offer a specific team’s RSN, and in turn for that RSN (and often their MLB team partner) collects monthly fees from every cable subscriber in that territory.
It’s a terrible arrangement for fans, but it’s made teams and RSNs a boatload of cash for the better part of 20 years.