The way in which media is created, distributed, and consumed is fundamentally changing. From the increased popularity of streaming services and the rising implementation of AI to the simple fact that everyone now carries the equivalent of a television in their pocket everywhere they go, how mass audiences are accessing and watching media has changed drastically over the course of the past few years. In this changing world of multimedia, the National Basketball Association (NBA) is looking to revolutionize how, when, and where it distributes its content.
For years, the NBA has had a joint partnership with Warner Bros. and Disney, with the respective companies’ TNT Network and ESPN receiving cable television broadcasting rights to the NBA’s games. However, even as the media landscape evolves, sports have remained an incredibly viable and reliable fixture of pop culture.
The Super Bowl still draws the largest broadcast ratings on an annual basis. The NBA Finals bring in huge numbers, the likes of which are next to unheard of for any other kind of cable broadcasting in this day and age. As a result, the NBA knows that its content is more valuable to these outlets than ever before.
Currently, Warner Bros. pays $1.2 billion annually per their contract with the NBA, and Disney pays $1.5 billion annually. If the NBA were to remain with these companies, these numbers would inflate drastically. For example, Disney has agreed to raise its price to $2.5 billion annually, a price tag nearly double its current one, even though it would mean getting even fewer games on ESPN because it can’t afford not to have NBA games on the fledgling broadcast channel.
Cable broadcasting as a medium is gradually declining, which is also why the NBA is exploring options outside of it, looking more specifically into streaming platforms. According to the Wall Street Journal, the NBA is fielding offers from NBCUniversal and Amazon, both offering deals that would net them exclusive streaming rights of NBA games on their respective streaming services, Peacock and Prime Video.
Notably, several NFL games have moved exclusively to streaming on Prime Video in the past few years and have generated some of the largest viewership numbers in the service’s history. As the NBA’s deputy commissioner, Mark Tatum, says, “Our fans are consuming the NBA in diversified ways, so our goal as a sports league is to try to make sure that no matter where the fan is, no matter how they’re consuming content, and in particular sports content, that we’re there,”
“Sports consumption has been defined by an increase in optionality for the fan and ultra personalization.” In mining the possibilities of the modern media landscape, the NBA is looking to explore the “hybrid” potential of distribution. Through exploring deals with both traditional television avenues and streaming exclusives, the sports giant stands to reap the benefits of substantial profits, with many insiders predicting the total net worth of the deal to be in the range of $75 billion.
