Warner Bros. Discovery Ends Legal Dispute Over NBA Coverage
By Movieguide® Contributor
Warner Bros. Discovery (WBD) has struck a new content deal with the NBA, ending a legal dispute that threatened to drag on for months, costing both sides millions of dollars.
The new deal strips WBD of domestic distribution rights of any regular season games. This change disrupts an over 30-year-long precedent, as WBD’s networks have been broadcasting games since 1989. This change was made due to the NBA having all regular season games already accounted for through NBC, ESPN and Amazon.
WBD’s CEO David Zaslov had previously threatened to legally target these contracts to retain the rights to certain distribution rights.
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“Zaslav has publicly stated he may attempt to use language in the current contract to remain involved with the NBA,” the Athletic reported last summer. “If Zaslav goes through with that, he is expected to target Amazon’s package.”
Instead of taking this course, WDB has given up most of its distribution rights to avoid this legal battle.
WBD, however, retained the rights to distribute NBA-related content through its popular shows, such as HOUSE OF HIGHLIGHTS and BLEACHER REPORT. The studio also retained the rights to distribution of games outside of the U.S. in multiple markets such as South America and Northern Europe.
These new conditions have led to further deals between WBD and other networks. ESPN will now have access to the network’s INSIDE THE NBA studio during key moments of the NBA season. Meanwhile, WBD gained the rights to distribute some Big 12 men’s football and basketball in the upcoming years.
This new deal between WBD and the NBA came with an 11-year term. WBD expects to generate over $100 million in profit in the next five years as a result of the new terms.
However, with the loss of some live sports programming, WBD is placed in a precarious position as that form of content remains the final breadwinner of the traditional TV market.
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