US Markets
Monday, November 18th, 2024 4:57 pm EDT
Key Points
- End of Turner Sports’ NBA Partnership: Warner Bros. Discovery will cease its U.S. live NBA game broadcasting after the 2024-25 season, ending a 40-year Turner Sports relationship with the league. The decision reflects the NBA’s move away from traditional cable TV to partners like Disney, NBCUniversal, and Amazon, who offer broader distribution and streaming capabilities.
- Settlement and Licensing Agreements: Warner Bros. Discovery secured a settlement allowing its TNT Sports access to NBA highlights for its digital platforms, such as Bleacher Report and House of Highlights, for 11 years. It also retains global NBA content rights in select regions and continues a production partnership with NBA Digital for five seasons, ensuring a role in content development and promotion.
- “Inside the NBA” and New Collaborations: TNT’s iconic “Inside the NBA” show will be licensed to Disney’s ESPN and ABC for premier NBA games, while TNT Sports retains production rights and editorial control. Warner Bros. Discovery plans to expand its sports programming portfolio, including new ventures like an “Inside Sports” show. The deal also includes sub-licensing agreements for college sports, such as Big 12 football and basketball games.
Warner Bros. Discovery has decided to end its bid to secure a live National Basketball Association (NBA) game package in the U.S. for the 2025-26 season and beyond, concluding all legal disputes with the NBA. The resolution stems from a July lawsuit filed by Warner Bros. Discovery, alleging the NBA failed to honor its matching rights for a live game package. Ultimately, the NBA selected Disney, Comcast’s NBCUniversal, and Amazon Prime Video as its exclusive U.S. media partners for an 11-year, $77 billion deal, including rights to WNBA games.
This decision marks the end of Turner Sports’ 40-year legacy as a U.S. broadcaster of live NBA games, with the NBA choosing to pivot from cable television toward platforms better suited for engaging younger audiences. However, Warner Bros. Discovery retains a presence in the basketball landscape through a settlement agreement, allowing its TNT Sports division access to highlights for its Bleacher Report and House of Highlights platforms for the next 11 years. The deal also grants Warner Bros. Discovery licensing and distribution rights for new and existing NBA content across its global media assets, with specific live game rights in regions like the Nordic countries, Poland, and Latin America, excluding Brazil and Mexico.
The agreement extends the partnership between NBA Digital and TNT Sports for five additional seasons, enabling Warner Bros. Discovery to assist with content development, production, and promotional activities. Though Warner Bros. Discovery will not receive additional compensation from the NBA for these services, the deal secures long-term revenue and positions the company to leverage its global sports business.
Additionally, the settlement impacts TNT’s iconic “Inside the NBA” studio show, which will now be licensed to Disney’s ESPN and ABC for high-profile NBA games, including the playoffs and finals. TNT Sports will continue producing the Emmy Award-winning show, retaining hosts Ernie Johnson Jr., Charles Barkley, Kenny Smith, and Shaquille O’Neal under their current contracts. These hosts may also collaborate on new programs for Warner Bros. Discovery, such as the “Inside Sports” show under development for the next season. ESPN has the option to discontinue the licensing agreement if key personnel leave the show.
Beyond the NBA, the settlement includes a side agreement allowing TNT to televise Big 12 football and men’s basketball games starting in 2025, expanding the conference’s linear TV presence. Warner Bros. Discovery and ESPN have previously collaborated on sub-licensing arrangements for College Football Playoff games, illustrating an ongoing partnership between the two media giants.
Despite the loss of live NBA broadcasting rights, Warner Bros. Discovery CEO David Zaslav framed the settlement as a strategic win. The agreements enable Warner Bros. Discovery to focus on its sports and digital platforms while maintaining its role in promoting basketball content globally. NBA Commissioner Adam Silver highlighted the continuation of “Inside the NBA” as a positive outcome, reaffirming the enduring value of the TNT Sports-NBA relationship.
The settlement underscores a shift in the media landscape, with the NBA favoring partners like Disney and Amazon that combine traditional broadcasting capabilities with streaming expertise. The evolving relationship reflects changing viewer habits and signals the NBA’s strategic pivot toward future-facing distribution models.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/11/18/nba-warner-bros-discovery-settle-lawsuit-over-live-game-rights.html
