Warner Bros. Discovery matches Amazon's offer for NBA game streaming rights

From CNBC: 2024-07-22 16:58:29

Warner Bros. Discovery exercises matching rights to secure NBA games earmarked for Amazon Prime Video. The company has submitted its matching offer to the league. Warner Bros. Discovery acquired these rights as part of its previous deal with the NBA. The league is reviewing the proposal, which could extend to an all-streaming package.

The competition between Warner Bros. Discovery and Amazon centers around the streaming rights for NBA games. Amazon, with over 200 million global customers, poses a formidable challenge to Warner Bros. Discovery’s Max service. The market capitalization of Amazon gives it a stronger financial position in negotiations.

The NBA has already secured deals with Disney and Comcast’s NBCUniversal for game packages, with both companies having significantly larger market valuations compared to Warner Bros. Discovery. If the NBA rejects Warner Bros. Discovery’s matching offer, the next steps remain uncertain.

Disney will pay about $2.6 billion annually for its game package, with NBCUniversal close behind at $2.5 billion per year. Amazon’s deal, which Warner Bros. Discovery is challenging, is valued at $1.8 billion annually. Prices play a significant role in the negotiations between the league and broadcast partners.

Consumer confusion and subscription limitations are factors the NBA considers in negotiating game packages. Amazon plans to offer NBA games to Prime subscribers at no additional cost, while Max may charge a $9.99 per month fee for access to live games. Warner Bros. Discovery is still deciding on the pricing model for its service.

Comcast, the parent company of CNBC, owns NBCUniversal.



Read more at CNBC: Warner Bros. Discovery says it will match Amazon