Important points
- Some streaming giants like Netflix and Amazon are betting big on live sports.
- Amazon is reportedly looking to spend billions of dollars to begin broadcasting NBA games, as well as a third season of the NFL’s “Thursday Night Football.”
- Meanwhile, traditional broadcasters like NBC and CBS have been working to make some of their sports content available for streaming.
Negotiations are underway over the National Basketball Association’s next broadcast deal, with streamers like Netflix (NFLX) and Amazon (AMZN) making increasingly big bets, despite reports of major streaming companies’ involvement. No wonder. To broadcast sporting events.
In recent weeks, it has been reported that the NBA is in talks or has a framework agreement with Amazon to begin streaming games on Prime Video, and that NBCUniversal will broadcast games on NBC for the first time since 2002. It is said that it will be streamed on Peacock and may continue to do so in the future. Disney’s (DIS) current agreements with ESPN and ABC and Warner Bros. Discovery’s (WBD) TNT.
The NBA negotiations represent the latest bet on sports as a potential source of revenue growth for streaming companies, a trend that has grown over the past few years. Sports dominates television ratings, accounting for nearly all of the year’s most-watched programs thanks to the big draw of National Football League (NFL) games, while recent NCAA The Division I women’s basketball tournament broke previous records.
Netflix
Netflix has entered the sports space in a variety of ways over the past few years, both in the documentary space and with live programming, such as behind-the-scenes stories from the world of Formula 1 racing, tennis, and golf.
The streamer has been experimenting with live programming, including exhibition golf and tennis matches between the stars of the documentary series, and earlier this year it made an even bigger bet, paying a reported $5 billion to compete in World Wrestling. It is reported that it will be the exclusive broadcaster for entertainment (WWE) events. In addition to the weekly RAW show, it also hosts annual events such as WrestleMania.
Amazon Prime Video
Amazon is betting big on Prime Video’s sports programming, with the NFL’s “Thursday Night Football” set to air its third season this fall.
Last week, Amazon and the NBA reached a framework agreement to broadcast “key regular season and postseason games, and possibly some conference finals as well,” adding that “the final agreement is for at least 10 years and ends in the 2025-2026 season.” It is reported that it will begin.” . ”
The league has one year left on a nine-year contract that will see it receive a total of $2.6 billion annually from Disney’s ESPN and ABC and Warner Bros. Discovery’s TNT.
YouTube TV
YouTube TV, owned by Google’s parent company Alphabet (GOOGL), is one of the largest live TV streaming services, including investments in sports.
Earlier this year, YouTube TV ended its first season with the rights to NFL Sunday Ticket, the league’s service that allows viewers to watch every off-field game, after purchasing it from DirecTV for $2 billion a year. did.
peacock
Peacock was launched as the streaming arm of NBCUniversal, an existing broadcast company owned by Comcast (CMCSA). The company is leveraging existing broadcast deals to produce programming for Peacock, stream events such as international soccer and WWE (before moving to Netflix next year), and plans to air programming during the Olympics this summer. .
Peacock also drew a lot of viewers when it aired NFL playoff games earlier this year, and league officials say this won’t be the last time a playoff game will be shown exclusively on the streaming service. He states that he is deaf.
The deal would allow Peacock to start streaming NBA games if NBC gets a portion of the broadcast, amid reports that NBC is looking to return to broadcasting NBA games, which it hasn’t held the rights to since 2002. There is a possibility that it can be done. right. wall street journal NBC reported that it is preparing an annual offer of $2.5 billion for the NBA’s next broadcast rights deal, with the intention of broadcasting games on NBC and Peacock.
Hulu
Hulu, also owned by Disney, has become the leading streaming provider for all types of live TV, including sports. The company also built an ad campaign centered around letting potential customers know that the streamer was broadcasting live sports.
Apple TV+
Apple (AAPL) has also entered the sports broadcasting space, signing a 10-year, $2.5 billion deal for the rights to broadcast Major League Soccer (MLS) games in 2022, and reports last year suggested the tech company The company is reportedly considering entering into a future bidding war. Acquired streaming rights to the English Premier League.
Apple is also investing in broadcasting Major League Baseball (MLB) games, reportedly paying $85 million annually starting in 2022 to broadcast prime-time “Friday Night Baseball” games.
paramount+
Like Peacock, a key selling point for Paramount Global’s (PARA) streaming arm is access to CBS’ NFL game rights. NFL viewership has also boosted Paramount’s revenue in recent quarters, with the company saying Paramount+ saw double-digit growth in many viewership metrics during the regular season that ended in January.
A joint venture between Warner Bros. Discovery, ESPN and Fox.
Earlier this year, Warner Bros. Discovery, Disney’s ESPN, and Fox announced an agreement to jointly create a dedicated sports streaming service, but analysts believe the service They point out that it may appeal to cable subscribers who don’t want to disconnect even if they want to. You don’t want to lose access to live sports, but you also don’t want to pay for another live TV streaming service like Hulu or YouTube TV.
Details such as service name and price have not yet been announced, and some analysts have expressed doubts that a dedicated sports service will be profitable given the high costs of acquiring match broadcast rights. ing.
