NBA’s new TV Deal looks to go to Streaming

[Bruce]

The NBA’s next media rights deal will have an emphasis on streaming, with Amazon reportedly favored to secure a piece of the pie.

According to The Athletic reporter Andrew Marchand, the deal will make streaming the “principal distribution method.”

NBA’s Next TV Deal Could Put Playoff Games — Including Finals — Exclusively on Streaming Services: Report

The NBA's next media rights deal will have an emphasis on streaming, with Amazon reportedly favored to secure a piece of the pie.

www.mediaite.com

 

[Bruce]

And just like that, looks to be almost done-

In what will be a landmark move in sports media history, the NBA and Amazon Prime Video have the framework of a deal that will make the streaming service one of the main homes for the league’s games, executives with direct knowledge of the talks told The Athletic.

It is expected that Prime Video’s package will include significant regular-season and postseason games, perhaps even some conference finals. The anticipation is that the final contract will be for at least a decade and begin the 2025-2026 season.

Amazon Prime has framework deal for NBA broadcast rights

The NBA prefers to have three companies involved in its new deals, but has not ruled out adding a fourth.

theathletic.com

The other part of the deal goes to ABC/ESPN, perfect start for their two new streaming ventures.

As far as the third set of rights, which is games during the regular season, maybe some playoffs, NBC is trying hard, while it looks like Warner does not have the money to match NBC.

 

[savarese04]

If Warner loses the NBA rights, what exactly are they bringing to the “Hulu Sports” joint venture? 5 MLB games? Also….that might be the death of Warner on tv because they have zero new non-sports content.

 

[Bruce]

If Warner loses the NBA rights, what exactly are they bringing to the “Hulu Sports” joint venture? 5 MLB games? Also….that might be the death of Warner on tv because they have zero new non-sports content.

Also have the NHL, some regular season, playoffs, championship.

But they will have the NBA for one more year..

But you are correct, Warner cannot afford to lose the NBA, but unfortunately, it seems like they cannot afford the NBA.

Cord Cutting is hitting them hard, have lost 30 million per sub fees in the last 7 years and it is getting worse, advertising is way, way down, they have already announced, that they are no longer producing new content for TBS/TNT.

This is what the article I linked above said-

With ESPN, Amazon and the NBA all under the impression that they will complete deals, this puts the onus on TNT Sports, which has had the NBA since 1984. It is in a fight with NBC, which was the lead partner of the NBA before losing its rights in 2002. NBC, with its streaming service Peacock, wants back in and is competing with Warner Bros. Discovery Sports for a deal.

Warner Bros. Discovery has the right to match deals, but NBC could structure an agreement in a way that makes it difficult.

 

[NashGuy]

Also have the NHL, some regular season, playoffs, championship.

But they will have the NBA for one more year..

But you are correct, Warner cannot afford to lose the NBA, but unfortunately, it seems like they cannot afford the NBA.

If Warner can't land the NBA again, it's going to put that much more pressure on Zaslav to find a way to acquire or merge with CBS, who has 50% of Sunday afternoon NFL games + playoffs, along with Big 10 football, NCAA basketball (including the rest of March Madness that Warner doesn't have), WNBA, PGA, women's US soccer, and European soccer.

 

[Bruce]

If Warner can't land the NBA again, it's going to put that much more pressure on Zaslav to find a way to acquire or merge with CBS, who has 50% of Sunday afternoon NFL games + playoffs, along with Big 10 football, NCAA basketball (including the rest of March Madness that Warner doesn't have), WNBA, PGA, women's US soccer, and European soccer.

If it cannot afford the 3rd Tier ( only regular season games, maybe some playoffs ) NBA rights, doubtful it can acquire CBS and the $2 Billion a year NFL rights ( plus all the others) that come with it.

 

[NashGuy]

If it cannot afford the 3rd Tier ( only regular season games, maybe some playoffs ) NBA rights, doubtful it can acquire CBS and the $2 Billion a year NFL rights ( plus all the others) that come with it.

Of course it can't on its own. But M&A deals work differently than regular operating expenses, such as renewing NBA rights. WBD would either raise money for a CBS acquisition by issuing more debt (bonds) or and/or they would issue more shares of stock (thereby diluting existing shareholders' stakes) to buy CBS. A venture capital group might be involved in the transaction; there seems to be a lot of interest among VCs in the media landscape -- note the current bids for Paramount from RedBird, KKR and Apollo.

 

[ncted]

Warning: paywalled (probably).

https://www.wsj.com/business/media/nbc-prepares-roughly-2-5-billion-a-year-offer-to-steal-nba-rights-away-from-tnt-e6e14eeb?mod=hp_lead_pos2

NBC Prepares $2.5-Billion-a-Year Bid to Pluck NBA Rights From TNT​

League is in advanced stages of a new round of media-rights deals; Disney’s payments would increase under proposed deal​

If Warner loses NBA rights, that would injure the planned sports-streaming venture the company is launching alongside Disney and Fox. Carrying NBA games was to be one of its key selling points.

 

[Bruce]

Warning: paywalled (probably).

https://www.wsj.com/business/media/nbc-prepares-roughly-2-5-billion-a-year-offer-to-steal-nba-rights-away-from-tnt-e6e14eeb?mod=hp_lead_pos2

NBC Prepares $2.5-Billion-a-Year Bid to Pluck NBA Rights From TNT​

League is in advanced stages of a new round of media-rights deals; Disney’s payments would increase under proposed deal​

If Warner loses NBA rights, that would injure the planned sports-streaming venture the company is launching alongside Disney and Fox. Carrying NBA games was to be one of its key selling points.

As I posted.

Warner has first refusal and can match, but cannot afford, last year, as the article says, paid $1.2 billion last year, $1.3 Billion more is a big increase.

But, like I wrote, they cannot afford to lose it either.

By the way, the NBA is getting a lot more for the these new deals then they planned for.

 

[savarese04]

By the way, the NBA is getting a lot more for the these new deals then they planned for.

I really thought, given the landscape right now, they'd get 30% increase TOPS. Good for them, but holy smokes.

If Warner loses NBA rights, that would injure the planned sports-streaming venture the company is launching alongside Disney and Fox. Carrying NBA games was to be one of its key selling points.

This was my first thought earlier. And you know NBC isn't joining this JV, given the tepid relationship with Disney. To be honest, I would have had a hard time forking out $40 for Disney+Warner+Fox; BUT, if you give me Disney+Fox+NBC, you might be able to convince me to fork out $50.

 

[Bruce]

I really thought, given the landscape right now, they'd get 30% increase TOPS. Good for them, but holy smokes.

This was my first thought earlier. And you know NBC isn't joining this JV, given the tepid relationship with Disney. To be honest, I would have had a hard time forking out $40 for Disney+Warner+Fox; BUT, if you give me Disney+Fox+NBC, you might be able to convince me to fork out $50.

New service at $40 with Fox+Disney+Warner, then +Peacock at $7.99/$13.99 (without commercials).

So $47.99 to $53.99, so close to your $50.

 

[Bruce]

I really thought, given the landscape right now, they'd get 30% increase TOPS. Good for them, but holy smokes.

Just read, ESPN’s deal is for $2.6B, NBC is at $2.5B.

So, I would assume Amazon is about $3B, so all together, $8.1 Billion per year.

NBA was hoping $5-6 Billion total for the new deal.

 

[ncted]

Just read, ESPN’s deal is for $2.6B, NBC is at $2.5B.

So, I would assume Amazon is about $3B, so all together, $8.1 Billion per year.

NBA was hoping $5-6 Billion total for the new deal.

It was already overpriced. This is just ridiculous.