The NBA media rights drama continues after Warner Bros. has officially announced their intention to match the $1.8 billion deal the NBA made with Amazon Prime Video for a streaming-only package of NBA games. WB has had matching rights for the NBA media rights deal built into their contract and is using that now.
“In an effort to continue our long-standing partnership, during both exclusive and non-exclusive negotiation periods, we acted in good faith to present strong bids that were fair to both parties. Regrettably, the league notified us of its intention to accept other offers for the games in our current rights package, leaving us to proceed under the matching rights provision, which is an integral part of our current agreement and the rights we have paid for under it.”
“We have reviewed the offers and matched one of them. This will allow fans to keep enjoying our unparalleled coverage, including the best live game productions in the industry and our iconic studio shows and talent while building on our proven 40-year commitment for many more years. Our matching paperwork was submitted to the league today. We look forward to the NBA executing our new contract.”
This could give fans of Inside the NBA hope that the show will continue on their streaming service, Max, instead of on TNT. However, ‘matching’ the Amazon Prime deal is not as simple as expressing the intent of doing so.
Amazon Prime Video is operated by Amazon, a company over five times more valuable than Warner Bros. In addition, Prime Video has nearly double the viewers and has a cheaper subscription service compared to the premium Max offering.
Warner can match the dollar amount of $1.8 billion, but they cannot offer the exposure that Amazon brings the NBA across the United States. The NBA should be expected to fight this and try to ensure Amazon comes on board as their streaming partner instead of being stuck with WB, as they’d paywall live NBA games behind a very expensive subscription whereas Amazon will continue to use the cheaper and more popular Prime Video.
The NBA’s two other media rights agreements are with Disney ($2.6 billion) and NBC Universal ($2.5 billion), with price points that went outside what Warner Bros. could afford, which is why they’re moving heaven and earth to try and retain NBA rights on streaming.
This could result in an ugly legal battle for the NBA to try and deny Warner’s matching rights unless Amazon comes in with a new bid or pays Warner to give up their matching rights.
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