• Loading stock data...
Friday, October 4, 2024
The Best Employers in Sports survey is now open! Take the survey

Amazon Is Proving It’s A Contender To Land NBA Rights

  • The NBA’s next multi-year rights package could fetch $50 billion to $75 billion.
  • Amazon proving it can draw younger, harder-to-reach viewers.
Stephen R. Sylvanie-USA TODAY Sports

Amazon is off to a strong start with the NFL’s “Thursday Night Football.” Given its early success, the e-commerce giant is making the case that it can take on the next mega sports rights package: the NBA.

The NBA’s current U.S. media deals with Disney’s ESPN/ABC and Warner Bros. Discovery’s TNT expire after the 2024-25 season.

The league will likely seek $50 billion to $75 billion for its next multi-year package, said sources. Amazon is paying the NFL around $1 billion a year to exclusively stream TNF through 2033.

Amazon has long been cited as a potential NBA bidder. But every week it defies expectations with TNF, that theory becomes more of a reality.

“The (NBA) has certainly done very well for a long time with ESPN and Turner. But interest in the league — and its strategic importance — are only growing,” said John Kosner, the former NBA and ESPN executive turned investor and advisor.

Amazon Continues Strong ‘Thursday Night Football’ Viewership

Amazon averaged 13.4 million viewers for third exclusive TNF’ stream.
October 3, 2022

Commissioner Adam Silver’s NBA is the most technology-forward sports league. Amazon believes TNF’s better-than-anticipated performance — and built-in audience of over 200 million Amazon Prime customers — makes it attractive to the global NBA, said sources. 

  • By Nielsen data, TNF is averaging 11.3 million viewers — up 11% from the first four games last year across NFL Network and a tri-cast of Fox Sports, NFLN, and Amazon. 
  • By its own metrics, Amazon Prime Video is averaging 13.3 million viewers for TNF through four games. 
  • Amazon is proving it can draw a harder-to-reach audience: TNF viewers are eight years younger (46 years old) than those on TV networks. 
  • TNF is averaging 2.7 million viewers in the advertiser-coveted 18-34 demographic, up 67% from last year.  

The NBA has already embraced streaming in China. The league boasts a $1.5 billion-a-year deal with Tencent Holdings that enables it to reach over 500 million basketball fans in China. 

Similar to the U.S., that rights deal runs through the 2024-25 season.

Big Tech vs. Legacy Media

The NBA surpassed $10 billion in revenue for the first time with the 2021-2022 season. Jeff Bezos’ Amazon won’t get the NBA without a fight. ESPN and TNT will battle to retain their packages, said sources. 

The two companies will pay the NBA a combined $24 billion under the current nine-year deal, which kicked in during the 2016-17 season. 

It’s still to be determined how the NBA will split up the next rights package. Sports betting giants will also be looking to carve off a piece of NBA media rights to create a “watch and bet” environment, said sources.

With a bidding war looming between tech and TV competitors, the NBA’s almost certain to double its current rights fees to at least $50 billion, said sources. 

That would jack up its annual media payout to the $5 billion range from the current $2.6 billion. ESPN pays $1.4 billion vs. TNT’s $1.2 billion (ESPN’s sister Disney network ABC gets exclusive rights to the NBA Finals). 

But the bidding could go even higher. CNBC previously reported the NBA could seek $75 billion for its next rights package. Amazon and the NBA declined to comment.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Dolphins Owner Ross in Talks to Sell 10% Stake to Ares, 3% to Joe Tsai

The deal will have to go before the NFL finance committee and then team owners.

NHL Faces Key Challenges After Its ‘Most Successful’ Season

Issues for the NHL include labor, Canadian media rights, the Utah Hockey Club, and regional U.S. broadcasting.

NBA Renews Push to Dismiss TNT Sports Media-Rights Lawsuit

The NBA cited a 51-year-old case involving the league itself.
podcast thumbnail mobile
Front Office Sports Today

Joe Montana, Montez Sweat on Evolution of NFL

0:00

Featured Today

The Cal mascot, Oski

How the Calgorithm Turned College Football Twitter Into Real Life

“College GameDay” makes its first trip to Berkeley on Saturday.
Apr 8, 2022; Philadelphia, Pennsylvania, USA; The cleats of Philadelphia Phillies right fielder Bryce Harper (3) as he runs the bases against the Oakland Athletics during the seventh inning at Citizens Bank Park.
October 1, 2024

MLB Players Are Clamoring for Swag. Outfitting Them Is Big Business

Sliding mitts, cleats, and belts are fun, flashy, and lucrative.
Sep 25, 2024; Los Angeles, California, USA; San Diego Padres right fielder Fernando Tatis Jr. (23) celebrates after hitting a solo home run in the fifth inning against the Los Angeles Dodgers at Dodger Stadium.
September 30, 2024

The Padres’ Future Is on the Line This Postseason

The MLB playoffs could determine the team’s path forward.
Aug 3, 2024; East Rutherford, NJ, USA; Barcelona midfielder Pau Victor (8) celebrates his goal with teammates during the second half of an international friendly against Real Madrid at MetLife Stadium. V
September 29, 2024

FC Barcelona’s Overspending Triggered a Crisis. Has It Tightened Its Belt Enough?

The club is betting on their middle-road strategy to dig out.

NHL Drawing Larger TV Audiences Thanks to ESPN, TNT Deals

This season, the NHL will cross the halfway point of its seven-year $4.37 billion media-rights deals.
October 2, 2024

DSG Could Drop Seven MLB Teams, Paving Way for Manfred’s Media Plan

The surprise move by the bankrupt Bally Sports parent throws local baseball broadcasting into upheaval.
October 3, 2024

What’s Next After DSG Drops MLB Teams? Free Agency to New Deals

The affected clubs are now considering a wide variety of options for 2025 game broadcasts.
Sponsored

Trend Report: Chiefs-Chargers, Tobacco Road Rivalry, Nebraska Sellout Streak

According to data from TickPick, some games this week will prove to be wallet-busters, climbing into the four figures.
October 2, 2024

NFL Ratings Surge in September With Chiefs in Four of Top Five Games

September NFL games averaged 17.9 million viewers.
October 2, 2024

TNT Has Staked Its Claim in College Sports Broadcasting

The network has quietly amassed a portfolio of NCAA rights.
October 1, 2024

WNBA Viewership Dips Without Clark, but Still Setting Records

Game 1 between the Connecticut Sun and Minnesota Lynx drew 654,000 viewers.
October 1, 2024

Charles Barkley Expanding Media Empire

Round Mound Media will produce more sports and cultural projects.