Leading media and entertainment company NBCUniversal, a subsidiary of Comcast (NASDAQ:CMCSA), is exploring the possibility of securing broadcasting rights for National Basketball Association (NBA) games, the Wall Street Journal reported. NBCUniversal plans to pay around $2.5 billion annually to air a package of NBA games.
This comes after Warner Bros. Discovery (NASDAQ:WBD), a longstanding NBA partner, failed to secure a new deal. Nonetheless, Warner’s TNT has the option to match rival offers. However, exercising this option would come at a substantially higher cost, considering the average fee of its existing NBA deal, which stands at $1.2 billion.
Here’s Why Sports Rights Matter for NBC
Securing sports rights is important for NBC and other media and streaming companies, as it will help them retain subscribers in the face of challenges from cord-cutting and a shrinking advertising market. This is why they are competing for new rights. Additionally, exclusive coverage of sporting events can serve as a major attraction for subscribers, aiding NBC’s Peacock streaming service in both growth and retention.
The proposed package by NBCUniversal would encompass both playoff and regular-season games, airing on the NBC network and its Peacock streaming service. NBC intends to air two prime-time games per week.
Whether NBCUniversal will secure a deal to air NBA games remains to be seen. Meanwhile, let’s look at the Street’s forecast for CMCSA stock.
What is the Forecast for CMCSA Stock?
CMCSA stock is down over 10% year-to-date. Further, Wall Street analysts are cautiously optimistic about CMCSA’s prospects.
Comcast stock has received eight Buys and six Holds for a Moderate Buy consensus rating. Analysts’ average price target on CMCSA stock is $48.87, which implies 25.79% upside potential from current levels.
