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No, fan support is really quite high. People don't realize how high it is, but viewership for the World Series is regularly far, far higher than that of the NBA Championships or Stanley Cup. MLB is doing fine. Only the NFL gets higher ratings, and considering that they have only 16 games per team, one-game elimination playoffs, and a championship that is one game long, that makes sense.
MLB gets really very good ratings, even while playing 162 game season, 4 5-game playoff series, 2 7-game playoff series, and one 7-game championship series.
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