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Why a $2.2 billion NBA deal was too much for WB Discovery https://lnkd.in/gnnMhb8T In a challenging ad market, TNT would need to more than double its ad revenue to maintain current profits (if there are any) from broadcasting NBA games. Moreover, as cord-cutting shows no signs of abating, Venu Sports would need to be a big success to keep viewership at current levels. WB Discovery may not cover the license fees with ad revenue in the first few years of the deal. Moreover, with the company heavily in debt, waiting three or more years for profits is just not an option.

📈 Something for us in #Sportsbiz to continue to watch: According to Axios, Americans continue to disengage in political and general news, as evident in the web traffic data screenshot below. This aligns with the increase in average viewership across sports; for example, in 2023, the NFL saw a 7% increase in viewership at 17.9M on average, per ESPN. We expect to see this translate to more brands coming to the table in 2024 to acquire and expand sponsorship rights and assets from sports properties, athletes, and broadcasters. It will be interesting to see how this continues as we lead into the election, and how this impacts churn on streamers who are acquiring sports rights. Shout out to Sara Fischer for the stellar media coverage.

NBCUniversal is preparing to make a major move in the sports media landscape by bidding an average of $2.5 billion per year for a package of National Basketball Association (NBA) games. The league is currently in advanced stages of a new round of media-rights deals, and Warner Bros. Discovery is making last-ditch efforts to keep the rights. This comes after Warner's TNT, one of the NBA's oldest television partners, was unable to reach a new agreement with the league before the exclusive negotiating window expired last week. The proposed deal would also see The Walt Disney Company's payments increase. Article from The Wall Street Journal #NBA #sportsmedia #NBCUniversal #WarnerBrosDiscovery #Disney #mediarights #sportsbiz #sportsbusiness #sponsorships #sportssponsorships #brandedcontent #ai #mensio #hive

Ahead of the WNBA (Women's National Basketball Association) Draft and the upcoming season, Prime Video & Amazon Studios and the league have extended their media rights agreement for two more years. This renewed partnership means that Prime Video will broadcast 21 games in the 2024 season, including the championship game of the 2024 Commissioner's Cup! This extension with Amazon is a major win for the league, as it remains in the market for its next primary media rights deal. Currently, the The Walt Disney Company/ ESPN is the league's largest rights holder. 🏀 #wbna #womensbasketball #amazon #amazonprimevideo #disney #espn #mediarights #sportsbiz #sportsbusiness #marketing #media #sportssponsorships #sponsorships #ai #mensio #hive Article by Sports Business Journal

🏀 The National Basketball Association (NBA)'s next round of rights negotiations is fast approaching... how could this shake up the sports/streaming landscape? 👀 Sports rights are essential properties given they're virtually the only events that consumers still tune-in to for appointment viewing, making them highly valuable for networks, streamers, and advertisers alike. Warner Bros. Discovery has historically had a big footprint carrying NBA games on TBS and TNT since 1988. The Walt Disney Company has also been a major partner via ESPN and ABC News. But others want in on the action, with bids being thrown around from the likes of Amazon and NBCUniversal, the latter having been absent from the League for more than two decades ⛹️♂️⛹️♀️ Prime Video & Amazon Studios has reportedly reached a framework deal with the NBA that resembles their share of National Football League (NFL) rights (where they exclusively carry Thursday Night Football games). And NBCU's bid is said to involve not just NBC but also (spoiler alert 🚨) Peacock as key assets to a deal. Peacock saw massive viewership during the NFL playoffs when it had exclusive rights to the Chiefs-Dolphins game. Can they mimic this success with the NBA? What other companies might have a chance to get in on the action? 📺👀 #StreamingWars #NBA #Investing101 #Media #DigitalAdvertising

A $60B+ sports business clock started ticking last Saturday. What is it?  The exclusive negotiating window for NBA’s national broadcast rights. The current deal worth $24B, is projected to increase 1.5x-3x, with the expectation of the next deal landing in the $60B-$72B range.  NBA + Turner + Disney have until April 22 to construct a new deal during this exclusive window.  If not, negotiations will open to potential new broadcasters and/or new deal structures. ESPN or Turner exclusive? Amazon? Apple?  NBC?  . . . I'll be intrigued to see the negotiation strategy. Will the NBA hold out to see what new players like Amazon or Apple can offer? Do Turner + ESPN put such a strong offer on the table so the NBA can't say no? Will either Turner or ESPN walk away because the rising broadcast cost makes it hard to justify the economics? Get your popcorn ready for one of the most important negotiations of 2024 🍿 #sportsbiz #sportsmedia #linkedinsports

The Varsity 1. Rich Greenfield: "Consumers are abandoning the linear cable bundle at record levels...The common theme [from this week's quarterly earnings calls] is that all of these companies are hoping that streaming can get big enough to offset the weakness or the declines in linear." 2. Warner Bros. Discovery imagines life without the National Basketball Association (NBA). 3. Updates from the Spulu trial. 4. Is Chicago White Sox owner Jerry Reinsdorf really launching his own RSN right now? A season after his team lost 21 games in a row? 5. RIP: Broadcasting magazine. Plus, Comcast executives are thrilled about the value that the NBA can offer NBC’s primetime lineup and Peacock’s growth and retention rates. But making the deal profitable will require some strategery at the affiliate and distributor level—and the fun is about to begin. https://lnkd.in/e8zn3vvj

Women’s sports have taken center court like never before—from the record-breaking WNBA (Women's National Basketball Association) draft to standout performances at the Olympics. MarketCast data reveals that more fans are subscribing to streaming services just to watch women’s sports—and they’re willing to pay more to access it. As this passionate fanbase continues to grow, discover how it’s reshaping the streaming landscape and driving subscriber growth: https://hubs.li/Q02Yc-Fd0

The NBA media deal negotiations are a fascinating insight into what the leagues are looking for in a media deal as the world continually gets more digital. Linear television and who can get the most people no longer appear to be the primary focus of these deals, especially the NBA. This article lays out why Comcast is such an important and interesting player in this battle for the final spot. Instead, the focus is now on collecting as much data on the consumer as possible. That is what streaming services provide. The NFL got tons of data from the TNF deal and will continue getting data from the wild card game on Peacock. This data is worth more than a normal person may think on the business level. Amazon and ESPN/Disney already appear to have deals in place for the next NBA media deal, so it is between WB Discovery/TNT and Comcast/NBC/Peacock. TNT is the traditional broadcaster who, while having the streaming service, does not have the financial power or the data-gathering of Comcast/NBC/Peacock. The latter, meanwhile, has a greater ability to collect data, has more money and is much more stable in terms of ownership. The results of this WB Discovery vs Comcast war will showcase where the future of sports broadcasting is heading. Keep your eyes out for what happens.

Volumetric is happening.