Warner Bros. Discovery to suffer $1.1 billion financial hit after losing NBA live TV rights

WARNER Bros.

Discovery is set to suffer a huge $1.1billion financial hit after they lost live rights to the NBA.According to Variety, who cited media analyst Robert Fishman of MoffettNathanson, the media group will lose that astronomical figure in TV advertising in 2026.GettyBasketball fans will be watching coverage of the NBA next season on NBC and Amazon[/caption]Those numbers equate to a staggering 23 per cent of the companys total revenue in advertising this year.TNT Sports, the parent company of Warner Bros.

Discovery, lost out to NBC and Amazon for live NBA coverage from next season.NBC paid an astonishing $2.6billion, while Amazon struck a deal for $1.8billion for a smaller package.Since losing NBA coverage, TNT Sports have added other live sports to their portfolio, including College Football Playoff games, the French Open, a package of Big 12 and Big East games, as well as a summer package of NASCAR races.Not only was this done to boost their programming line-up, it also helped them maintain the carriage fees they demand from cable and satellite companies.Its a strategy that worked with WBD signing deals with Comcast and Charter on the same deals they signed before they lost the NBA.However, while adding live sports events will keep their distributors happy losing the NBA will mean the volume of live sports events that channel shows will go down.Currently, TNT Sports shows two live regular season NBA games a week, and even more when it gets to the playoffs.In relation, Five NASCAR races, the French Open, two CFP games, and some lower-tier Big 12 and Big East games wont have advertisers as willing to spend the cash as they would on NBA coverage, which draws more viewers.

Those sporting events are an unknown entity for advertisers in terms of how many people will watch.Whereas, the NBA had been aired on TNT Sports for thirty years so advertisers were aware of its commercial pull.For now, TNT Sports will have to rely on its new portfolio of sports coverage bringing in viewers, and over time, attracting advertisers.But, the reality is that losing NBA coverage will cause a plunge in advertising revenue..

This article has been shared from the original article on thesun, here is the link to the original article.