NBA Media Rights Negotiations Wrapping Up, Where’s Apple?, NBA and Apple Immersive Video
Today's update will have an NBA / Apple theme. We begin with a close look at how the NBA media rights negotiations are trending (via the WSJ). The discussion goes over who are likely to be the big winners. We then turn to Apple and look at where the company is relative to NBA media rights. The update concludes with some ways the NBA can embrace Apple Immersive Video.
Hello everyone.
Some quick follow-up to yesterday’s discussion.
We talked about how publishers are receiving attractive monetization terms from Apple News and Apple News+. As for some of the details, if a publisher participates in the News Partner Program, they receive a 15% commission rate on in-app purchase subscriptions through their iOS app. This includes monthly subscription signups. That is not a bad commission rate, especially considering how other platforms for writers, like Substack, charge 10%. For Apple News ads monetization, publishers keep 100% of ads that they sell and 70% of ads that Apple sells. Again, not bad.
Today's update will have an NBA / Apple theme.
NBA Media Rights Negotiations Wrapping Up
Here’s the WSJ:
“The National Basketball Association entered its first TV negotiations in a decade with a problem: Its main business partners seemed to be on shaky footing.
TNT parent Warner Bros. Discovery was saddled with more than $40 billion in debt, while ESPN parent Disney was battling a Wall Street activist over its slumping stock. Each company was reluctant to pony up the full premium the league wanted. But the NBA had quietly laid the groundwork with two other potential partners, Amazon and NBC, who pounced as soon as they got the chance.
Now, with negotiations ongoing as the Boston Celtics and Dallas Mavericks prepare to face off in the NBA Finals, the league is on track to score big: It is closing in on deals with NBC, ESPN and Amazon that would bring in about $76 billion in media revenue over 11 years, people familiar with the discussions said.
The NBA sweepstakes has turned into a defining moment for the TV industry, highlighting the anxieties of traditional media companies about the collapse of cable and their uncertain financial futures in the streaming world. It has put front-and-center the paradox that sports content is outrageously expensive but also critical to own in an industry in which it is one of the few reliable ways to draw in audiences.”
Here are the NBA media rights details that the WSJ is hearing:
Disney: $2.6B/year for games (fewer than it currently airs) and the NBA Finals. The new ESPN streaming service that will launch will be able to air games.
Comcast (NBCUniversal): $2.5B/year for 100 games per season (half will air exclusively on Peacock). The NBC games
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