The National Basketball Association (NBA) is set to conclude its exclusive TV rights negotiation period with current partners Disney and Warner Bros. Discovery without a new deal, sources familiar with the matter have revealed. This means that starting next week, the NBA will be able to explore agreements with potential new partners to showcase its games. Companies such as Amazon, Apple, YouTube TV, Comcast’s NBCUniversal/Peacock, and Netflix have expressed interest in preliminary conversations with the league. While no agreement is expected to be reached by the deadline, both Disney and Warner Bros. Discovery are continuing to work on terms with the NBA.
The NBA spokesperson confirmed that the league aims to bring in at least one new partner to serve as a flagship streamer. They are looking for a robust streaming partner that will prioritize marketing and reach to make NBA games a top priority on their platform. While discussions are ongoing with Disney and Warner Bros. Discovery, the negotiations have become more complex due to the potential addition of a third party. Both current partners are reluctant to lose the rights they already possess, but the NBA is seeking a significant increase in fees.
The NBA’s objective is to double the $24 billion it generated from its previous media rights deal with Disney and Warner Bros. Discovery by adding new partners and charging higher fees for rights. In 2014, during the NBA’s last negotiation, the league renewed its rights with Disney and Time Warner five months before the end of its exclusive negotiating window and doubled the price for its rights. This time, discussions have become more intricate due to the involvement of a potential third party.
The value of live sports programming has increased significantly due to its appeal to advertisers. While ad-free subscription streaming services have become popular for scripted programming, sports are predominantly watched live, ensuring viewers see commercials. Last year’s NBA playoffs were the most watched in 11 years across various networks. The 2023-24 NBA regular season also saw an increase in viewership, with an average of 1.09 million viewers, up 1% from the previous year.
However, regular-season viewership on traditional cable and broadcast networks has plateaued this year. The average televised audience across ABC, ESPN, and TNT was 1.56 million, down 1% from the previous year and the lowest in three years. Despite this, TNT maintained its average viewership of 1.4 million for its 65 regular-season games.
The NBA playoffs are set to begin on Saturday, marking an exciting time for basketball fans. As for the TV rights negotiation, it remains to be seen which new partners the NBA will bring on board and how they will shape the future of broadcasting NBA games. The league’s goal is to secure a lucrative deal that not only benefits the NBA financially but also provides fans with enhanced access and viewing options.
