The National Basketball Association (NBA) is nearing some major media deals, with Amazon (NASDAQ:AMZN) and YouTube (NASDAQ:GOOGL) competing for new streaming rights, according to a Wall Street Journal report. Meanwhile, Comcast’s (NASDAQ:CMCSA) NBCUniversal is seeking TV deals currently held by Disney’s (NYSE:DIS) ESPN and Warner Bros. Discovery’s (NASDAQ:WBD) TNT.
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Media companies are eyeing the NBA league’s next round of media packages, set to take effect after the 2024-2025 season. According to the report, Disney and Warner currently pay $1.6 billion and $1.2 billion yearly for television deals, respectively.
These companies are negotiating substantial increases in payments for airing fewer games, starting from the 2024-2025 season. This is because it benefits them to prioritize exclusivity and high-demand matchups to enhance the value of each broadcast and attract more viewers and advertisers.
Rife Competition for NBA Broadcast Rights
Furthermore, Comcast’s NBCUniversal is competing with Disney and Warner for NBA games, aiming to show regular-season and playoff games on NBC and its streaming service, Peacock. The company also wants to share the broadcast rights for the NBA Finals with Disney’s ABC network.
The hefty amounts paid by traditional media companies highlight the value of live sports for these companies amid declining TV viewership due to cord-cutting. Cable remains crucial for sports fans who are unable to stream their favorite teams’ games.
Amazon and YouTube Compete for Streaming Rights
Meanwhile, Amazon’s Prime Video streaming service is considered a front-runner for streaming these games, currently holding the rights to air National Football League (NFL) games. Google’s YouTube is also competing for streaming rights to the NBA games.
The NBA Commissioner Adam Silver has stated that when negotiating long-term deals, the NBA aims to expand rights deals and broaden viewership options globally, similar to the NFL’s strategy of boosting rights fees and entering into deals with streaming services like Amazon’s Prime Video service.
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