Warner Bros. Discovery has exercised its matching rights for a package of NBA games that were earmarked for another company, believed to be NBC and Amazon Prime Video. The company expressed its commitment to its long-standing partnership with the NBA and its efforts to present fair bids during negotiations. Warner Bros. Discovery has reviewed the offers and matched one of them, ensuring that fans can continue to enjoy their coverage, including live game productions and studio shows.
The matching rights were acquired by Warner Bros. Discovery as part of their previous deal with the NBA, which is set to expire at the end of the next season. These rights allow the company to match payment for any games that aired on TNT in the current deal. However, the question remains whether these rights extend to an all-streaming package like the one offered by Amazon Prime Video.
While Warner Bros. Discovery owns a streaming service, Max, it may face competition from Amazon due to the latter’s larger global customer base of over 200 million compared to Max’s 100 million. Amazon’s market capitalization is also significantly higher at nearly $2 trillion, while Warner Bros. Discovery’s market valuation is around $20 billion, potentially making Amazon a more appealing platform for the NBA.
Furthermore, Warner Bros. Discovery’s CEO, David Zaslav, has expressed interest in more mergers or partnerships, raising uncertainty about the company’s future. This could pose a potential headache for the NBA, which seeks stability in its broadcast partners. The league has already secured deals with Disney and Comcast’s NBCUniversal for other packages of games.
If the NBA rejects Warner Bros. Discovery’s right to match the Amazon package, the next steps are unclear. There is a possibility of legal action or a settlement between the two parties. It remains uncertain if the NBA would request additional payment from Amazon for its package.
Creating a fourth package of games is unlikely, as talks in the past have fizzled due to existing deals with Disney, Comcast, and Amazon. All three partners are willing to pay more money for fewer games than the current deal with the NBA. Disney will pay approximately $2.6 billion per year, NBCUniversal around $2.5 billion per year, and Amazon’s deal is worth $1.8 billion per year. Warner Bros. Discovery has targeted the Amazon package due to its lower price tag.
The NBA is cautious about creating too many packages to avoid confusing consumers and requiring them to subscribe to multiple services. Amazon plans to include NBA games for its Prime subscribers at no extra charge, while Max requires an additional $9.99-per-month fee for access to live games on top of a basic membership.
In conclusion, Warner Bros. Discovery has exercised its matching rights for a package of NBA games and aims to continue its partnership with the league. The future of the rights remains uncertain, particularly regarding the all-streaming package offered by Amazon. The NBA is cautious about creating too many packages and seeks stability in its broadcast partners. The potential legal actions or settlements and the possibility of additional payment from Amazon are yet to be determined.
