Just as Warner Bros. Discovery plots the launch of its Venu Sports joint streaming venture alongside Disney and Fox, it risks losing NBA broadcast rights. A new report from Alex Sherman of CNBC indicates that while TNT losing the NBA would force the networks to reevaluate the structure of the Venu platform, it would not likely force the companies to cut off the service completely.
Disney and Fox already likely brought more value to the table with their NFL packages, but WBD dropping the NBA would result in the other two companies “contributing the lion’s share of sports content for the service while owning the same one-third stake in the venture,” Sherman reported.
“If Warner Bros. Discovery loses the NBA, that will diminish the value of the service for consumers,” Sherman added.
Still, WBD will have the NBA at least through next year regardless of what its final rights package looks like. TNT and TBS also broadcast Major League Baseball, the NHL and the NCAA men’s basketball tournament, as well as NASCAR starting in 2025.
As Sherman notes, TNT could pivot from the NBA and pursue other sports rights to add inventory and replace pro basketball. But TNT routinely draws more than a million viewers in the regular season for NBA games, plus many more than that during the playoffs. Without the NBA, its offering is diminished.
While WBD appears to be holding out hope its matching rights agreement with the NBA holds up (very much in question) and allows it to retain broadcast rights, the company will have its work cut out if it loses the NBA.
[CNBC]
