With the NBA’s exclusive negotiating window with media partners Disney and Warner Bros. Discovery
Going forward, it’s possible the NBA’s annual media rights could near $6 billion each year.
With a new media rights agreement imminent, the NBA has expressed an interest in expanding the number of media partners to three while also looking for a media partner to live stream games nationwide. The league is seeking a total media rights deal of at least $50 billion and possibly higher. The NBA expects the increases will come from media rights fees increasing as well as more media partners.
There are multiple reports the NBA has reached a tentative agreement with Disney and Amazon
There are reports these NBA negotiations could also include a package of WNBA games. Neither agreement has been finalized. The NBA, Disney and Amazon have not yet publicly commented on the negotiations.
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The second incumbent media partner, WBD, has yet to reach a tentative agreement with the NBA. WBD has a long history of partnering with the NBA dating back to 1984 when “superstation” WTBS began nationally televised games. NBA games have been televised on TNT since 1988.
Back in November 2022, WBD CEO David Zaslav said, "We don't have to have the NBA." Nonetheless, during the exclusive negotiating window, WBD had been having talks with the NBA.
The WBD is now competing with NBC, which has expressed an interest in partnering with the NBA for the third package of games. NBC had televised NBA games in 1990 before being outbid by ABC/ESPN and TNT in 2002. There is also the possibility the NBA could include a fourth media partner.
While a framework is reportedly in place with Disney and Amazon, no financial information has been disclosed. Both deals are expected to cover at least ten years and possibly longer. The Wall Street Journal, reported NBCU has made a bid of $2.5 billion each season for a portion of the NBA games.
This is more than the $1.2 billion WBD has been paying the NBA each season with its current agreement. In addition, there are reports ESPN will increase its annual fees from $1.5 billion to $2.6 billion, despite a reduction in the number of games televised. ABC will continue to televise the top-rated NBA Finals.
NBCU has broadcast television (including Spanish language Telemundo) and a streaming platform (Peaco*ck) Last January, Peaco*ck live streamed an NFL Wild Card game and had been live-streaming MLB games in 2022 and 2023. This summer, Peaco*ck will be NBCU’s hub for the Paris Olympics streaming live every event. NBCU would be expected to stream NBA games on Peaco*ck.
Moreover, cable’s USA Network could televise NBA games. With the demise of NBC SportsNet at the end of 2021, many live sports have moved to the USA Network such as the English Premier League. Also, with top-rated WWE Raw set to leave USA Network for Netflix
Similar to TNT, USA’s household penetration has been steadily decreasing.
According to the Wall Street Journal report, NBC will televise two primetime games each week and the package will include both regular season and postseason games. By comparison, WBD does not own any broadcast network and with cord-cutting, TNT has been steadily losing household subscribers. Per Nielsen, in October 2014, when the last NBA media rights agreement was announced, TNT had a TV household penetration of 82.4%, it has since plummeted to 53.6%.
Even though WBD still has the rights to such high-profile sporting events as the men’s “March Madness”, NASCAR and regular season and postseason MLB and NHL games, the loss of the NBA would be deeply felt. With the NBA, TNT could charge MVPD's a fee of about $3 each month, among the highest in the cable industry which, in likelihood decline.
In the aftermath of Wall Street Journal reporting, the share price of WBD dropped by nearly 10% in just one day (April 30), reaching all-time low. Reliable Sources notes the WBD stock price has lost about 70% of its market value since it began trading in April 2022.
As an incumbent, WBD, which have begun streaming games on Max this season, has the rights to match any agreement made between the NBA and NBCU. In February, WBD along with Disney and Fox, announced a sports streaming deal with plans to launch later this year.
In addition, by retaining the NBA, ESPN will continue to be the self-proclaimed leader in sports. The cable network has media rights to the NFL, NHL and MLB for regular season and postseason games. Last March, ESPN announced a new six-year $7.8 billion exclusive agreement for the media rights of an expanded (12-team) College Football Playoffs. The deal expires in 2031-32.
More recently, the Disney networks, under a renewed agreement, televised the enormously popular NCAA Women’s Basketball Tournament.
While no financial terms have not been reported, Amazon Prime Video’s tentative agreement with the NBA will include regular-season games as well as postseason matchups. There is also the potential Amazon will live stream some conference finals matchups. Prime Video has been live streaming NFL Thursday Night Football for the past two seasons and will live stream an NFL Wild Card game next January.
In addition, Prime Video already has had a relationship with the NBA. For example, beginning with the 2022-23 season, Prime Video has been live streaming NBA games in Brazil.
Last January, Prime Video struck a deal to live stream NBA games in Mexico. In early April, Prime Video signed a two-year agreement with the WNBA to live stream 21 games (including the in-season Commissioner’s Cup championship game) in 2024 and 2025.
Locally, Prime Video has also been active in live streaming sports including 21 New York Yankees games this season. Last January, Amazon made an investment in the financially strapped Diamond Sports Group. If the restructured plan of the regional sports network is approved, Prime Video will be able to live stream locally, the games of 37 NBA, MLB and NHL teams. Last week, Prime Video announced they would begin live streaming Seattle Kraken NHL games in Washington, Oregon and Alaska.
Despite a youthful fanbase, the inclusion of Prime Video will provide the NBA with its first national streaming platform. In a survey conducted by The Athletic last October among 6,380 NBA fans, a majority of them (57.1%) were between the ages of 26 and 45.
Last season, Prime Video’s coverage of NFL Thursday Night Football had a median age of 48.5, compared to 55 for NFL games on linear television and 62 on primetime broadcast television.
It’s been reported the media companies are also having talks with the NBA about how to divvy up the premium games on television and streaming. Disney, Amazon, WBD and NBCU all have scheduled upfront presentations during the week of May 13. If any NBA media rights agreements are finalized, the topic will be front and center with the advertising community.
