NBA season tips off after an offseason that reshaped the league's media future

As the NBA enters the final season of its current media deal with Walt Disney Co. and Warner Bros. Discovery Inc., the league has a lucrative future ahead. This summer, the NBA secured a groundbreaking 11-year partnership worth $76 billion with Disney, Comcast Corp., and Amazon.com Inc. Valued at $6.9 billion annually, the deal reflects a 164.1% increase over the current agreement. The deal ranks second among major US sports, following the NFL's rights, which are collectively worth nearly $110 billion over 11 years. The landmark agreement, scheduled to begin for the 2025–26 season, features a combination of streaming, broadcast and cable network partners, requiring subscriptions to multiple paid video services to access all the action.

Disney will pay the NBA approximately $2.6 billion annually to broadcast about 80 games each season for the league's "A" package across ESPN and ABC. This agreement includes coverage of the NBA Finals and one NBA Conference Final each year. Additionally, Disney will acquire international and digital rights, enhancing the ESPN Inc. direct-to-consumer offering set to launch in fall 2025.

Comcast's NBCUniversal Media LLC will pay $2.5 billion annually for the league's "B" package, which includes season-long games on Monday and Tuesday nights, Sunday night games after the NFL season, and the NBA All-Star Weekend. Monday night games will be available on Peacock, but the distribution of the other games remains undisclosed. While the NBC broadcast network is likely to feature many marquee matchups, including Sunday night games, NBCUniversal may also air some Tuesday night games on USA. This marks the first time the NBA will be on NBC since the 2001–02 season.

Amazon, the newest player in the league's media rights, is set to broadcast live national NBA games on Prime Video for the first time next season. The platform is already familiar with live sports as the exclusive home for NFL Thursday Night Football games since 2022. Amazon is expected to pay $1.8 billion annually for a package that includes games on Thursday, Friday and Saturday nights, the Emirates In-Season Tournament, and WNBA rights.

Warner Bros. Discovery's continued fight for NBA media rights

Warner Bros. Discovery and TNT Sports are entering their final season of NBA media rights while contesting the league's "C" rights package in an ongoing lawsuit. They allege that the NBA imposed "onerous or immaterial" contractual terms designed to disadvantage them and favor Amazon. Despite these claims, Warner Bros. Discovery proposed to match Amazon's offer, ensuring equal payments, distribution on the "Max" platform, and promotional support during major events.

The NBA is pushing to dismiss TNT's claims, arguing that they improperly sought to amend key provisions of the Amazon deal. Both parties have agreed to an expedited trial schedule, tentatively set for early April, although appeals may prolong the dispute into the 2025–26 season, coinciding with the start of new national rights agreements with ESPN, NBC Sports, and Amazon.

Regional NBA coverage continues to evolve with streaming at forefront

After the NBA's summer media-rights deal announcement, Knicks owner James Dolan raised concerns about its impact on RSNs. Commissioner Adam Silver acknowledged that the new deal would divert content from RSNs and noted the previous model was failing, with some partners bankrupt. This season, struggling RSNs are receiving lower fees, and Silver predicts streaming services will increasingly shape local viewership.

In related news, FanDuel acquired naming rights to Diamond Sports Group's Bally RSNs, pending the group's bankruptcy outcome. The Pelicans terminated their contract with Diamond, opting for a new deal with Gray Television, significantly expanding their reach. Other teams, like the Bulls and Trail Blazers, have launched their own networks or streaming services, moving away from traditional RSNs. The Jazz reported a 53% audience growth after switching to over-the-air broadcasting, highlighting the trend toward direct-to-consumer models.

Consumer Insights: Expansion on the horizon?

Data from S&P Global Market Intelligence Kagan's 2023 Consumer Insights surveys reveal significant regional differences in NBA viewership. In the US, 23% of respondents watch NBA games, compared to around 10% in most European markets. China stands out as the most NBA-friendly market, with 52% of respondents indicating they regularly watch games.

Viewer demographics also vary: Europe has a younger audience, particularly in the UK, where 57% of viewers are under 35. In contrast, the US and China have older viewers, with 70% of US NBA fans and 64% of Chinese fans aged 35 or older.

Regionally within the US, the San Francisco-Oakland-San Jose market leads with 47% viewership, followed closely by San Antonio (46%) and Cleveland-Akron (45%). Conversely, Orlando-Daytona Beach-Melbourne has the lowest viewership at 24%.

Once the league settles its ongoing lawsuit with Warner Bros. Discovery concerning the new national TV contracts, it plans to concentrate on markets without an NBA team and to explore expansion opportunities. Silver told reporters that the league plans to address expansion this season, saying there is "certainly interest in the process" but adding, "We're not there yet in terms of having made any specific decisions about markets or even frankly to expand." The expectation is that the next round of expansion will likely be limited to two teams, with Seattle and Las Vegas as strong favorites. Among professional sports markets lacking an NBA team, San Diego has the highest share of NBA viewers at 32%.

Reports suggest that a pair of new expansion teams could generate more than $10 billion combined for the league, meaning each existing team would receive a check exceeding $300 million as the new teams join. Although an expansion is likely still a few years away, the process is expected to start in the near future, potentially adding teams as soon as the 2027–28 season.