Last week, the NBA concluded negotiations with media companies regarding its broadcast rights, marking a significant shift in how its games will be covered. Previously, NBA coverage was shared between Disney’s ABC and ESPN, and Warner Bros.’ Turner Network Television (TNT), with ABC exclusively broadcasting the NBA Finals. This arrangement has now been overhauled as new media companies enter the fray.
The updated deal redistributes the broadcast rights among ESPN, ABC, Amazon Prime Video, NBC, and Peacock. While ABC will retain the rights to the NBA Finals, regular season games, playoffs, and conference finals will be spread across these platforms.
Amazon will handle NBA coverage in the U.K., and NBC will broadcast some games in Europe through Sky Sports. This new arrangement will see these companies collectively pay the NBA just over $76 billion over the next 11 years.
NBA’s New Media Deal Marks Shift to Streaming Platforms with $76 Billion Agreement
The inclusion of streaming services like Peacock and Amazon represents a landmark shift in sports media. Comcast’s NBCU, which owns Peacock, anticipates that the NBA’s inclusion will bolster its subscriber base and enhance ad sales. NBCU’s president, Michael Cavanagh, is optimistic that the NBA will significantly benefit Peacock’s growth and reallocation of programming resources.
The trend of integrating sports coverage with streaming services is growing. Sports rights deals are increasingly moving toward streaming platforms, a shift highlighted by Apple’s acquisition of MLB and MLS rights. David Cohen from the Interactive Advertising Bureau views this as a pivotal moment, marking a significant move towards a streaming-centric future for television and media.
Tech firms are eager to leverage premium sports coverage to drive growth for their streaming services and increase ad revenue. Platforms like Amazon, with the financial capacity to make substantial bids, are pursuing these rights aggressively. In contrast, Warner Bros.
Discovery, facing financial challenges, is struggling to maintain its long-time NBA partnership and has taken legal action against the NBA, alleging that its bid was unfairly rejected.
As the landscape of sports broadcasting evolves, the introduction of streaming platforms into the NBA’s media coverage could create a complex viewing environment. Experts predict that this transition may lead to confusion among viewers due to the varied distribution channels.
However, there is also potential for increased advertising opportunities as streaming platforms generally offer lower advertising costs compared to traditional TV, possibly allowing new advertisers to enter the market.
