August 2, 2024

The battle of the giants for NBA streaming rights. Warner Bros. Discovery takes NBA to court.

Business
Szymon Karbowski
The battle of the giants for NBA streaming rights. Warner Bros. Discovery takes NBA to court.

Warner Bros. Discovery has sued the NBA for unclear reasons for rejecting its offer to broadcast and stream the world's most popular basketball league. There's a clear battle between the market giants for these rights.

Warner Bros. Discovery (WBD) claims it made a last-minute bid for the smaller package of broadcast rights for the next 11 seasons, starting in 2025/2026. WBD bosses say they made an offer equal to what Amazon had previously offered, which should automatically give them the rights to reclaim that package. The NBA sees the situation differently and recently said that Disney, NBC and Amazon will be its new TV streaming partners. On Friday, Warner Bros. Discovery sued the league, claiming it broke a previous agreement and failed to honor its rights to an equal offer.

Viaplay's global defeat clearly shows that the market for broadcasting rights to sporting events isn't ready for streaming service owners. WBD as an owner Eurosport and Max broadcast the Olympics extensively and recently paid USD 650 million for a long-term contract to show the French Open.

It seems that this isn't the end of the company's investment plans. According to ESPN, TNT (part of the Warner Bros. Discovery group) has officially made an offer to show NBA games that matches that of its competitors. Last Tuesday, the league announced a deal with Disney+, NBC and Amazon Prime Video for the next 11 years, but according to some sources, Warner Bros. Discovery wants to fight Amazon for those rights.

The agreement between Amazon Prime Video and the NBA states that the company will pay $1.8 billion for every year it streams the world's best basketball league. WBD is prepared to pay upfront for a number of years to come, as Amazon has previously stated. The company had five years to make a similar offer, but it missed the deadline and is now waiting for a positive response from the league's owners.

The total value of the NBA broadcasting rights from the start of the 2025/2026 season will be $76 billion. The main package has already been bought by broadcasters ABC and ESPN (both owned by Disney). According to the primary plan, Amazon Prime Video would show one NBA game per day, on Thursday, Friday and Saturday. If Warner Bros. Discovery's offer is accepted, Thursday games will be shown on TNT, but Friday and Saturday games will be shown on the Max platform.

The company currently owned by WBD has had an NBA package since 1984. Four years later, TNT Channel debuted and has been showing basketball games ever since. The channel became famous thanks to the award-winning show 'Inside the NBA'. This show has great and famous experts such as Shaquille O'Neal, Charles Barkley or Vince Carter.

In Poland, Canal+ has owned the rights since 2023. The latest license covers the recently ended 2023/24 and 2024/25 seasons. The channel is licensed to show the most important games and events such as the All-Star Weekend and also produces its own magazines "Basket+" and "Basket Office”.

This is a classic case of big business vs. big sports. It’ll be interesting to see who comes out on top in this legal showdown?

#SzymonKarbowski #StreamVX #videostreaming #WarnerBrosDiscovery #NBA #StreamingRights #ABC #ESPN #Amazon #Viaplay #Disney #NBC #BasketballLeague

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