At a time when streaming platforms like Amazon Prime Video and Apple TV are gaining ground in the sports landscape and shaking up the traditional pattern of “TV couch”the NBA may consider partnering with these new broadcasters.
You can’t buy half an apple. It’s either we take the apple or we don’t take anything.
Since the rise of the NBA, the broadcasting rights for the American basketball league have been a single product. Do you buy TV rights? You have to buy the rights to streaming. On the contrary, vice versa and vice versa, you understood the logic. But at a time when streaming platforms are gaining legitimacy and eating away at TV market share, the NBA can’t help but wonder about its obsolescence. ” packaging usually”. The idea? Finally, allow customers to split the apple into two: TV rights to TV channels, streaming rights to streaming platforms.
A source? A track?
The idea for this topic did not fall from an apple tree. Michael McCarthy, journalist for Sports in the Front Officeconfides that the NBA will set itself the possibility of selling a package streaming-only matches on the occasion of the upcoming broadcast rights settlement. According to Patrick Crakes, sports media consultant, the bid for this package should start at $1 billion per year. The current broadcast rights divestment that began in the 2016-17 season with ABC and ESPN (owned by Disney) and TNT (owned by Warner Bros. Discovery) earns the NBA $2.6 billion a year. This transfer is valid for nine years and brings a total of 24 billion dollars. The NBA will be looking for a long time to get between 50 and 75 billion dollars for its next batch of rights that will start in 2025, we told you about it in detail last year.
According to Sports in the Front Officethis group of rights will be divided into two parts: the new package streaming rights, and the package teloch rights.
Who is interested?
Apple TV will be among the main contenders for package streaming rights. Steve Jobs’ platform has already signed a historic 10-year, $2.5 billion deal with MLS and broadcasts several matches from “Friday Night Baseball” from MLB for $85 million per year. Entering the NBA is the logical next step, and Apple TV is very affordable, surpassing Amazon Prime Video in terms of annual sales and market capitalization.
However, Amazon Prime Video is in pole position to regain the streaming rights package. A source said Sports in the Front Office already“Amazon is ready to try its luck in the NBA”. Jeff Bezos’ platform is also establishing itself as one of the new players in sports broadcasting. The NFL has already provided it “Thursday Night Soccer” on Amazon Prime Video in a billion-dollar-a-year deal that runs through 2033. Pro league Overtime Elite, which has a huge impact on the pre-draft landscape, has reached a new media rights deal with Amazon Prime. The deal ? 20 games per season for the next 3 years. The idea is to add as many books as possible to its sports library in order to offer a bigger/more interesting offering than the competition. Also on Amazon Prime Video, Premier League, Bundesliga and Ligue 1 Uber Eats matches are commented live every weekend by two men in the cabin. The diversity of football on offer is impressive and follows the TV model in its treatment of the match.
For basketball, we’re not there yet.
— Michael McCarthy (@MMcCarthyREV) October 31, 2022
Gradually, the NBA’s streaming rights will gain ground, but television rights are not set to go away. On each of the traditional channels (TNT, ESPN), a good NBA poster averages more than a million viewers. Great figures who value TV rights : this is the delicacy for the NBA to invite a new player around its table.
Inviting Amazon Prime Video or Apple TV to its table would be tantamount to the NBA competing with TNT, ESPN and ABC – TV rights would lose value – and NBA League Pass, a platform with over 20 million subscriber. yearly which pays the League enormously on paper. So also Sports in the Front Office giving rise to a tacit agreement between the NBA and Amazon Prime Video only one to two regular season games per weekso as not to break the distribution scheme that is already in place.
But suddenly, why is the NBA courting streaming platforms if its distribution model is already sustainable?
If we get Amazon Prime Video, platform subscriptions are available on 18 different countries. However, not all countries have their TV channel broadcasting Cainri basketball, and the package streaming rights aim to fill this gap. You know the internationalization policy of Adam Silver, in continuation of that of David Stern: the more the NBA exports abroad, the better it does. With the potential transfer of streaming rights to Prime Video, it is stepping in where the barrier of national TV channels has stopped it.
And in form, what to expect?
We take the idea of one or two regular season meetings per week, we add a duo of commentators popular in the NBA community in the country concerned, and we get the competition model which will try to develop streaming platforms.
Everyone wins: the platform that owns the streaming rights package will diversify its offer and try to get a bigger deal package with each renegotiation, the NBA reaches a larger audience, retains the uniqueness of NBA League Pass that broadcasts all matches and obtains more broadcasting rights thanks to this division of package historical.
A topic full of details, we tried to summarize as briefly as possible the reasons and consequences that these negotiations between the NBA and the streaming platforms may have. If we are still in an embryonic state of things at present, we should not be surprised if it changes a lot in the coming months. See you tomorrow for the same paper on LNB TV (no).
Source text : Sports in the Front Office