Warner Bros. and NBA Revamp Partnership with Digital Focus

Warner Bros. Discovery and the NBA resolve a legal dispute over broadcasting rights, with Warner focusing on digital and international markets while relinquishing US TV rights. The 11-year deal includes collaboration with ESPN and marks a strategic shift in Warner's approach to sports broadcasting.

Warner Bros. Discovery and the NBA have reached a settlement over a heated legal battle regarding broadcasting rights, signaling a pivotal change in their long-standing collaboration. The agreement allows Warner Bros. Discovery to continue covering NBA content, focusing primarily on digital platforms and international markets. However, the company will cede domestic TV game rights to competitors, as reported by Variety.

The resolution of this dispute, marked by an 11-year contract, comes after Warner filed a lawsuit against the NBA following its exclusion from the league's new broadcasting deals. The revised TV rights package, shared with Disney's ESPN, Amazon, and NBCUniversal, had left Warner out of domestic game broadcasts it had held since 1989.

Under the new terms, Warner Bros. Discovery retains rights to NBA highlights and content through its Bleacher Report and House of Highlights platforms, Variety notes. The company will also continue broadcasting NBA games internationally, notably in Northern Europe and parts of Latin America, though Brazil and Mexico remain outside its purview.

This settlement marks a strategic pivot for Warner Bros. Discovery, emphasizing digital and international content, with sources suggesting the agreement permits the continued management of the NBA's digital assets, a role Warner has played for over three decades.

The shift offers Warner a chance at substantial international exposure amid growing global interest in the NBA. Despite losing domestic broadcast rights, Warner is expected to profit significantly, possibly earning USD 100 million in the agreement's first five years, according to insider estimates.

An additional collaboration sees Warner's renowned "Inside the NBA" studio show available to ESPN during key NBA season moments. This partnership allows ESPN to utilize Warner's expertise and popular personalities like Charles Barkley and Shaquille O'Neal in its coverage.

Furthermore, the agreement expands Warner's sports portfolio with rights to air Big 12 football and men's basketball games, indicating a new chapter in its broadcasting efforts. "Inside the NBA" remains a cornerstone of Warner's programming, with potential exploration into other sports, helping avoid a prolonged costly legal battle that could have strained Warner's access to a lucrative revenue stream.

Warner's reliance on NBA broadcasts for advertising sales is evident, with NBA games contributing significantly to TNT's top programming lineup in 2023. Earlier this year, Warner absorbed a financial hit, reportedly writing down USD 9.1 billion in TV assets, including anticipated losses from domestic NBA broadcasts with the new TV deal's implementation next season.

Notwithstanding these challenges, Warner maintains substantial sports rights, including the French Open, NASCAR, and College Football Playoff, diversifying its sports offerings amid a fast-evolving media landscape. (ANI)

(With inputs from agencies.)