The NBA‘s media rights negotiations have taken a dramatic turn just days after the league announced a seemingly finalized agreement with Disney, NBCUniversal, and Amazon. Warner Bros. Discovery (WBD), the current rights holder for NBA games on TNT, has exercised its matching rights in a last-ditch effort to retain the coveted broadcasts. TNT has held NBA rights for 35 years.
WBD targets Amazon’s streaming deal
While WBD hasn’t specified which bid they’re matching, reports suggest they’re targeting Amazon Prime Video’s $1.8 billion per-season offer, or more than $20 billion over the course of the deal. This move throws a wrench into the previously agreed-upon package distribution, with WBD arguing that their existing agreement grants them matching rights. The NBA is currently reviewing this proposal.
Streaming takes center stage
The new deals, valued at a staggering $76 billion over 11 years, prioritize streaming platforms. Disney’s ESPN and ABC, along with Comcast’s NBCUniversal’s Peacock, will share the lion’s share of the NBA content. This shift reflects the growing importance of streaming services in the media landscape, a point Commissioner Adam Silver himself emphasized. WBD argues that their ability to simulcast games on TNT and their streaming service, Max, offers a fan-friendly alternative.
Legal showdown looms?
However, WBD faces challenges in convincing the NBA. Amazon boasts a market cap of nearly $2 trillion, while WBD sits at a much lower $20 billion. Additionally, Amazon offers over 200 million global customers, compared to Max’s 100 million, making it a more attractive platform for the league. If the NBA rejects WBD’s matching bid, a lawsuit could be on the horizon. The remaining question is whether WBD’s rights extend to an all-streaming package like Amazon’s. This legal uncertainty adds another layer of complexity to the already tense negotiations.
The road ahead
The NBA has limited options. Creating a fourth package seems unlikely, especially considering existing deals with Disney, Comcast, and Amazon. Negotiating a higher price with Amazon isn’t an attractive option either. A settlement with WBD remains a possibility, but the path forward remains unclear.
Fans left in limbo
While these negotiations play out behind closed doors, fans are left waiting. The final outcome will determine how they access NBA games in the coming years. Will they be bundled with existing streaming subscriptions, or will they require additional fees? The answer depends on the outcome of this high-stakes game of corporate chess.
