NBC secured NBA media rights for $2.45 billion/year to boost Peacock streaming

From CNBC: 2024-08-15 11:53:36

NBC Sports secured the NBA’s media rights for $2.45 billion per year, beginning in 2025, after a successful NFL playoff stream on Peacock, which attracted 27.6 million viewers and 3 million new subscribers. The move aims to ensure Peacock’s profitability as the pay-TV model declines, positioning it against streaming giants like Netflix and Disney+.

Sports fans subscribe to streaming services for games, but NBCUniversal and CBS Sports have found that viewers stay for a variety of content, including entertainment programs like movies and TV shows. This engagement is key in retaining subscribers and making streaming services profitable, amidst a shrinking pay-TV model and a growing importance of streaming platforms.

NBCUniversal’s investment in the NBA rights is seen as a risky move, given Peacock’s current financial losses. However, the company aims to leverage the exclusive NBA games to drive subscriber growth, higher retransmission fees, and increased advertising revenue. The NBA can also be used to market other NBC ventures, offering competitive advantages over rivals. In the long term, NBCUniversal anticipates profitability within the second year of the deal.



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