Editor’s Note: The article has been updated with Amazon’s response.
The National Basketball Association (NBA) is reportedly close to finalizing deals with NBC CMCSA, ESPN, and Amazon AMZN that could generate approximately $76 billion in media revenue over 11 years.
What Happened: The NBA entered its first TV negotiations in a decade amid financial challenges faced by its main partners, Warner Bros. Discovery and Disney. However, the league had already engaged with potential new partners, Amazon and NBC, who quickly showed interest.
With the NBA Finals approaching, the league is on track to secure deals with NBC, ESPN, and Amazon, The Wall Street Journal reported on Wednesday. NBC is expected to pay around $2.5 billion annually, airing about 100 games per season, half of which will be exclusive to the Peacock streaming service.
NBA and ESPN did not immediately respond to Benzinga's request for comment while an Amazon spokesperson declined to comment.
Amazon’s $1.8 billion-a-year package will include regular-season and playoff games, the new NBA in-season tournament, and the “play-in” games. Disney, retaining its NBA package, will continue to air the NBA Finals, with payments averaging $2.6 billion annually, up from $1.5 billion under the current deal.
The deals, set to begin after the 2024-2025 season, will also include rights to WNBA telecasts. Owners must approve the agreements, and any announcement could still be weeks away.
Why It Matters: The NBA’s media rights negotiations have been a hot topic in recent months. In April, it was reported that Amazon, YouTube, and NBCUniversal were competing for streaming rights, with NBCUniversal aiming to reclaim TV rights from Disney’s ESPN and Warner Bros. Discovery’s TNT. This competition underscores the enduring value of live sports amid cord-cutting trends.
By the end of April, it became evident that NBC and Amazon were ready to make significant offers, potentially sidelining Warner Bros. Discovery. This shift highlights the changing landscape of sports broadcasting, where traditional networks face stiff competition from streaming giants.
Disney CEO Bob Iger expressed confidence in securing a long-term NBA rights deal, emphasizing the importance of live sports content for the company’s streaming strategy. This confidence reflects Disney’s commitment to maintaining its stronghold in sports broadcasting despite the competitive environment.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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