NBA's Broadcast Rights Battle: Impact on Advertisers

Potential implications for NBA's current commercial partners include:

• Changes in Broadcast Rights: With new bids from Comcast, Disney, Warner Bros, and Amazon, there may be shifts in which broadcaster airs which games.

• Opportunities for New Brands: Brands previously unable to advertise with the NBA due to exclusivity might have the chance to partner with the league.

• Streaming Services Impact: The introduction of Amazon Prime Video and possibly NBC's Peacock could bring new audiences and advertising opportunities.

• More Fragmented Rights Landscape: If the distribution of matches goes to a larger number of broadcasters, it may be more challenging for a single brand to dominate NBA advertising.

Streaming services could impact the NBA audience and advertising opportunities in several ways:

• New Audiences: Platforms like Amazon Prime Video and NBC's Peacock could attract viewers who are less likely to subscribe to cable, such as younger demographics.

• Advertising Opportunities: These platforms may create new opportunities for advertisers that were previously shut out, allowing them to reach NBA fans in a different way.

• Viewer Attrition: There might be some initial viewer attrition if the broadcast schedule changes, but consistent scheduling could mitigate confusion.

• Increased Surface Area for Brands: With more broadcasters showing NBA games, there could be more opportunities for new advertisers to enter the space.

NBC's bid for NBA broadcast rights is currently gaining momentum and is considered to have critical support. NBC has offered the NBA $2.5 billion a year, which significantly surpasses TNT's $1.2 billion offer. However, the final decision has not been made, and Warner Bros and TNT have the right to submit an updated proposal. The situation remains dynamic, with media buyers and industry observers closely watching the developments.

Challenges and opportunities for brands with NBA's potential move to streaming platforms include:

• Challenges:

  • Brands that have built loyalty with fans on traditional broadcasts, like TNT's 'Inside the NBA', may have to adapt to new platforms and potentially rebuild their audience.
  • The transition to streaming could lead to initial viewer attrition and require brands to adjust their advertising strategies.

• Opportunities:

  • Streaming platforms could attract new, younger audiences, offering brands a chance to engage with demographics that are less tied to cable TV.
  • The fragmentation of rights could allow more brands to participate in NBA advertising, especially those previously excluded due to cost or exclusivity.