Washington: Warner Bros, Discovery and the NBA have settled a contentious legal dispute concerning broadcasting rights, marking a significant shift in their long-standing partnership.
Under the terms of the new agreement, Warner Bros. Discovery will continue its coverage of NBA content, but with a focus on digital platforms and international markets, while conceding US TV game rights to competitors, as per Variety.
The 11-year deal resolves the lawsuit Warner had filed against the NBA after the league decided to exclude the media giant from its new broadcasting arrangements.
The NBA’s new TV rights package, which includes Disney’s ESPN, Amazon, and NBCUniversal, had left Warner on the sidelines for its domestic game broadcasts, which it has carried since 1989.
Despite this, Warner Bros. Discovery will retain the rights to showcase NBA highlights and content through its Bleacher Report and House of Highlights platforms, as per Variety.
Additionally, the company will continue to distribute NBA games in international markets, including Northern Europe and parts of Latin America, though Brazil and Mexico will remain outside its coverage area.
The settlement marks a shift in Warner’s strategy, as the company pivots to a greater emphasis on digital and international NBA content.
According to Variety, sources familiar with the matter, Warner’s new agreement with the NBA will allow the company to manage the league’s digital properties, which it has done for over three decades.
This includes continuing to provide NBA highlights and digital coverage to a global audience.
While Warner loses the lucrative rights to air NBA games in the US, the deal provides an opportunity for significant international exposure, especially in regions where the NBA continues to grow in popularity.
As per Variety, one source estimated that Warner Bros. Discovery could see up to USD 100 million in profits from the first five years of the new agreement, as its international distribution and digital media coverage take centre stage.
In a separate arrangement, Warner Bros. Discovery has struck a deal to make its popular “Inside the NBA” studio show available to ESPN during key points of the NBA season.
This collaboration will allow ESPN to leverage Warner’s expertise and iconic personalities like Charles Barkley and Shaquille O’Neal, as part of its broader NBA coverage.
Variety reported that the new deal also expands Warner’s sports footprint, with rights to broadcast Big 12 football and men’s basketball games, marking a new chapter in the company’s sports broadcasting efforts.
“Inside the NBA,” which remains a staple of Warner’s NBA programming, will also be considered for expansion into other sports as Warner explores new avenues for the show’s reach.
The settlement helps Warner avoid a prolonged and costly legal battle with the NBA. Without a resolution, both parties faced a potentially lengthy court fight that could have extended well into next season.
While NBA executives were confident they would prevail in the courts, the legal drama could have undermined the relationship between the two, with Warner losing access to a prime revenue source.
Warner’s cable operations, particularly its flagship TNT network, have long relied on NBA broadcasts to drive advertising sales.
According to Variety, NBA games accounted for much of TNT’s top programming in 2023, making the loss of domestic broadcast rights a blow to its revenue stream.
Warner had already taken a hit earlier in 2023, reportedly writing down USD 9.1 billion of its TV assets, including the expected loss of NBA game broadcasts when the NBA’s new TV contract kicks in next season.
Despite the setback, Warner continues to hold valuable sports rights, including those for the French Open, NASCAR, and the College Football Playoff (CFP), securing deals that help diversify its sports portfolio amid the changing media landscape.
