I tried the app a couple of months ago and the picture quality was awful. I now watch via Dolphin browser in desktop mode. While the picture is laggy at times, it gets the job done.
The video quality on the iPhone adjust to your signal. On wifi or with a strong 3g connection, the picture very good. I have complained to anyone at mlb.com that would listen and have only gotten generic responses about problems that I'm not even having. For example, when asking them if there was a way to get better video quality, their response was about audio issues...
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