The streaming giant Netflix is reportedly looking for a major expansion into the sports broadcasting arena, specifically targeting the NBA In-Season Tournament. But this potential move has sparked mixed reactions from NBA fans.
One fan expressed concerns about the involvement of a movie-focused platform in the sports domain. He tweeted, “Netflix should just focus on their movies, we don’t want them in NBA”.
Netflix should just focus on their movies, we don’t want them in NBA
— Gob3 2 cedis🍛 (@salimtygaa) November 14, 2023
Another added, “Please no we are gonna get 50 ads” worrying about the potential increase in advertisements. While another commented “what’s the point of league pass then?” asking about the impact on existing NBA League Pass subscriptions.
Netflix’s consideration of acquiring live-game rights, as reported by John Ourand of Sports Business Journal, is a change from its traditional content strategy. The company is also thinking about developing a documentary series around the tournament, similar to its successful sports documentaries like “Drive to Survive” for Formula 1.
NBA’s upcoming rights deal may shift media power balance
The NBA’s upcoming decision on the distribution of its TV and streaming rights is expected to have a major impact on the media landscape. With the current rights deal set to expire after the 2024-25 season, many big players, including Comcast’s NBCUniversal, Google’s YouTube TV, Amazon, Apple, and potentially Netflix, are in the line to win these rights.
How is the NBA approaching its next media rights deal? The league’s top media executive draws a road map.
SBJ’s media column:https://t.co/vju6LUYEDj
— John Ourand (@Ourand_SBJ) November 13, 2023
This negotiation holds significant importance as it occurs only once every ten years, as the last deal was announced in 2014. The NBA has a unique opportunity in the absence of NFL rights negotiations which is secured until 2033 and is expected to demand a major increase in the value of its new media deal. Such a move could shift the power balance within the media industry, especially in the world of live sports broadcasting.
Netflix’s growing interest in NBA streaming rights
Netflix’s growing interest in sports media rights, particularly regarding the NBA, is a potential strategic shift for them. Co-CEO Ted Sarandos who previously dismissed the idea of Netflix venturing into live sports has shown a new interest, especially in terms of the company’s push towards an ad-supported subscriber tier.
Netflix has expressed some preliminary interest in picking up the rights to the NBA’s In-Season Tournament, per sources.
SBJ Media:https://t.co/lyfpYPZI2j
— John Ourand (@Ourand_SBJ) November 14, 2023
In December, Sarandos said, “We’ve not seen a profit path to renting big sports.” This change in perspective comes as Netflix aims to expand its subscriber base and increase average revenue per user (ARPU).
The addition of NBA games would bring premium ad rates which aligns with this new strategy. While Netflix had previously bid unsuccessfully for live Formula 1 racing rights, the NBA rights offer a different scale of opportunity, promising extended viewer engagement from October to June, including playoffs.
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