New NBA Deal Will Reshape How Fans Consume Basketball

The NBA is poised to make waves in the media landscape with its upcoming multiyear media rights deal. Here’s what we know:

Record-Breaking Fees: The NBA is expected to announce a groundbreaking media rights pact that will significantly increase its annual fees from TV and streaming outlets. Reports suggest that the new deal will more than double the current fees, reaching an impressive $6 billion annually after the 2024-25 NBA season1. This substantial increase reflects the league’s growing popularity and the value it brings to broadcasters and streaming platforms.

Streaming Platforms in the Mix: Two streaming services are vying for exclusive NBA game packages:

• Amazon Prime Video: Known for its aggressive sports acquisitions, Amazon is likely to secure a significant package of games. It already holds the rights to NFL “Thursday Night Football” and will stream its first exclusive playoff game next season.
• Peacock (NBCUniversal): Philadelphia-based cable giant Comcast Corp. has reportedly made a $2.5-billion bid for a package of games on its streaming service, Peacock, and broadcast network NBC1. Streaming platforms recognize that live sports content is a powerful draw for audiences, allowing them to build scale and attract users.

Traditional Media Companies Under Pressure: Legacy media companies face challenges due to rising costs and declining revenues in their traditional TV businesses. While Amazon aggressively invests in sports rights, traditional broadcasters must adapt to the changing landscape.

Disney’s Retained Rights: Walt Disney Co. is expected to retain the rights to the NBA Finals, one of TV sports’ crown jewels. The Finals will continue to air on broadcast network ABC. Disney’s ESPN will also maintain regular-season and playoff game coverage. The network’s commitment to the NBA aligns with its plans to offer a direct-to-consumer version of ESPN by 20251.

Warner Bros. Discovery’s TNT at Risk: The ongoing negotiations could result in the loss of an NBA TV package for TNT, which has been a cornerstone of NBA programming for over three decades. If Comcast’s bid for streaming service Peacock succeeds, it would be a significant blow to Turner (TNT’s parent company) from a public image standpoint1.

NBA’s next TV deal has the potential to reshape how fans consume basketball and may further elevate streaming platforms in the competitive media landscape.