Thursday, July 25, 2024

Amazon Prime Video slam dunks billion dollar deal to stream NBA globally.


by Thinus Ferreira

Amazon Prime Video has clinched a billion-dollar contract to stream National Basketball Association (NBA) games from 2025 globally, and WNBA games from 2026, in another transformative deal that further propels the shift from live sports from linear TV to streaming.

Besides Amazon's streaming deal, the NBA also signed deals with The Walt Disney Company and NBCUniversal in the United States after the NBA rejected a deal from the current rights owner Warner Bros. Discovery. 

It means that Disney through ESPN, and NBCU will distribute some NBA games through linear TV to some international markets.

"Warner Bros. Discovery's most recent proposal did not match the terms of Amazon Prime Video's offer and therefore we have entered into a long-term arrangement with Amazon," the NBA said in a statement.

Amazon on Wednesday night announced its 11-year media rights agreement, according to which it will now be the exclusive streaming service for 66 regular NBA games beginning in 2025, including the Emirates NBA cup and the NBA playoffs, as well as regular and postseason WNBA games beginning in 2026.

In the landmark deal, Amazon Prime Video will present exclusive global coverage for 66 regular-season NBA games, including an opening-week doubleheader, a new Black Friday NBA game, and all games from the Knockout Rounds of the Emirates NBA Cup, including the in-season tournament's semifinals and finals.

Amazon Prime Video will present live NBA pregame, postgame, and halftime shows as part of its coverage.

Amazon Prime Video also acquired the rights to exclusive coverage of every game of the postseason SoFi NBA Play-In Tournament, first- and second-round playoff games, and Conference Finals in six of the 11 years of the deal. Prime Video will distribute its package of games in the United States and internationally.

The international live-game package rights extend worldwide.

Mike Hopkins, head of Prime Video and Amazon MGM Studios, in a statement, says "NBA and WNBA basketball will serve as yet another cornerstone of the robust sports business our Prime Video team has built in just the last six years".

"When combined with our original films and shows; partner streaming services; licensed content; and rent or buy titles - our sports offering is a major driver of Amazon Prime Video's evolution into a genuine one-stop shop for everything our customers want in video."

Jay Marine, global head of sports for Amazon Prime Video, says "We are proud to be the first exclusive streaming partner for the NBA, bringing Prime members across the globe one of the most exciting and most popular sports in the world".

"With 66 regular-season games, the NBA Cup, the Play-In Tournament, more than 20 playoff games every year, and NBA League Pass, we're giving basketball fans around the world more ways than ever to watch the action."

"Over the past few years, we have worked hard to bring the very best of sports to Amazon Prime Video and to continue to innovate on the viewing experience." 

NBA commissioner Adam Silver in the statement says "The digital opportunities with Amazon align perfectly with the global interest in the NBA and Amazon Prime Video's massive subscriber base will dramatically expand our ability to reach our fans in new and innovative ways".

According to MIDiA research, Amazon's NBA grab "will reshape how sports rights are monetised for the remainder of this decade".

"Unlike film and non-sports content, sports broadcast has maintained its practice of slicing and dicing broadcast rights on a territory-by-territory basis. While lucrative, this behaviour no longer makes sense for global streaming propositions such as Amazon Prime Video, which expects a return on investment based upon global exploitation of licensed content".

MIDiA says that Amazon Prime Video "paying above the market rate has the added appeal of taking the rights out of reach of legacy media majors such as Warner Bros. Discovery. These companies are struggling to deliver upon their streaming potential due to the need to protect their core yet declining pay-TV business revenue streams".

"This means a slam dunk for streaming TV at the expense of traditional TV business models."