Once Warner Bros. Discovery moves forward with its breakup plans, TNT Sports will find itself part of a debt-saddled company full of legacy cable assets.
Because, like NBCUniversal spinoff Versant, the company will operate as a fully independent entity, TNT Sports will not be beholden to partnering with the HBO Max streaming platform. The likely eventual separation between TNT Sports and Max comes after the combined company struggled to execute their streaming strategy with sports. Other networks have invested heavily in acquiring and showcasing their sports portfolios into their streaming offerings while Max has struggled, partially due to tech issues and shifting strategy ideas, to make sports a key tenant of the Max app.
So how does TNT Sports move forward? In theory, TNT Sports could license its content to any media company, from a streaming platform like Prime Video to a broadcast network like NBC or Fox, if they thought either option made sense and, crucially, don’t believe it’d undercut carriage agreements with distributors.
We can look at TNT’s deal with Prime Video around Champions League rights in the U.K., which was struck last year, as a blueprint. Under that agreement, Prime Video simulcasts one Champions League match each week from TNT’s package in an effort to “offer the widest range of sport in a single place.”
That deal isn’t a perfect predicate for a potential TNT Sports licensing agreement following the WBD split. The fact of the matter is that TNT Sports will likely have to both buy and sell sports rights to be successful long-term given their limited cable foothold.
Let’s take a look at how that could work with various dance partners.
ESPN
With ESPN’s clear ambitions to have a Cheesecake Factory menu of sports content, perhaps they could look to add some of TNT Sports’ inventory. The two sides have worked closely together over the past 12 months. They struck a deal to trade Big 12 football and men’s basketball games for the rights to air Inside the NBA starting in the fall. And they forged a sublicensing partnership on the College Football Playoff, under which TNT airs ESPN-produced postseason games.
TNT and ESPN also split hockey rights in two separate deals with the NHL, with the networks rotating the Stanley Cup Final every other year.
We have already seen ESPN suck up content like The Rich Eisen Show to bolster its paywalled offering. It is expected to formalize a purchase of NFL Media this summer. Licensing TNT’s most valuable rights, such as those of NASCAR or the rest of the NHL package, is certainly something the Worldwide Leader could have interest in.
Amazon Prime Video
TNT Sports content would be a significant boost to Amazon’s growing sports portfolio. And with the two are already in business in the U.K. via the aforementioned Champions League deal, perhaps they could look to expand that relationship.
TNT’s French Open and U.S. Soccer rights would certainly be of value to a global streaming platform like Prime Video, in addition to Amazon adding five additional NASCAR races to its current five race package.
However, it’s difficult to see a reason Amazon would be interested in TNT’s smaller properties like the Mountain West or AEW.
Amazon is still early in their sports strategy, but TNT Sports may offer the inventory and production expertise for them to take a step forward if they want to bolster their live sports portfolio in an expedited way.
Paramount Global
Paramount+ is quietly one of the more successful streaming services out there. Last month, Paramount Global reported 79 million subscribers and a net loss of the service of just $152 million. Co-CEO Chris McCarthy stated during a recent analyst call that the service is on track to achieve profitability this year.
However, the shadow of a troubled, prolonged purchase from Skydance looms over Paramount. Reports indicate the deal is expected to close by the end of June.
If it does, industry observers suggest CBS Sports may go on a spending spree. Considering there are not many desirable sports rights on the market aside from those of Major League Baseball, perhaps new Paramount ownership could target TNT’s inventory. These games could air on CBS or Paramount+.
The two companies partner on the NCAA men’s basketball tournament and could perhaps extend the scope of that partnership to other rights if Paramount feels additional inventory could further boost Paramount+.
No easy answer
Netflix, Apple, and YouTube also have shown a growing interest in acquiring sports rights. Could TNT’s inventory springboard any of them to being a more viable player in the industry?
While certainly a possibility, TNT’s portfolio doesn’t necessarily lend itself to such a move. The network does not own the marquee package for any of the leagues it is in business with. It airs far fewer championship events than it’s peers.
TNT Sports is in an unique position. A storied brand, production expertise, and a healthy portfolio of live rights. However, without a broadcast network, and now without a default streaming service, how they leverage their current sports portfolio will be an ongoing challenge in the coming years.
