Last week, the NBA announced a “redesigned all-in-one global app” that essentially wanted to make goals a unified destination for league fans around the world.
This could be a very big deal because of the idea of a single digital storefront to sell the rights to view all league games, the implications of Sinclair’s potential for bankruptcy and what the application might mean for the next national TV rights negotiations.
What the NBA announced: Here are some highlights of what the app will show you:
• It will be available globally.• Wall-to-wall content from every game.• Advanced development of alternative ways to view games.• Behind-the-scenes access to players and teams.• Access to the NBA League Pass for a new low of $14, 99 per month or $99.99 for the entire season.• Access to classic games.
Let’s point our index fingers up in a Windhorst fashion and say, “Why would the NBA do that?”
1️⃣ The nature of distribution has changed, resulting in those with the most vital content having more power. The internet has created opportunities for individuals or businesses to reach the entire world on a large scale without the need for other delivery services.
While a content provider like the NBA can still enjoy the fruits of the old model — and indeed, through its cable and broadcast TV offerings — it can increasingly see a world where it can go directly to consumers or, at the very least, position the option as a threat for older models to take advantage of more. many billions of dollars in future deals.
2️⃣ This comes at a time when the cable model is under extreme stress, especially with the Sinclair Broadcast Group on the verge of bankruptcy. This is a pressing issue for the NBA, MLB, and NHL because Sinclair owns the local broadcasting rights for the games of 16 NBA teams, 14 MLB teams, and 12 NHL teams.
3️⃣ The NBA recently “assisted” Sinclair with its refinancing while granting Sinclair the rights to broadcast the team’s games that already own the cable rights.
Why did they do that? Well, I don’t know the intricate details of the deal, but my understanding is that the NBA could take back the rights (including the Mavericks, Heat, Bucks, and Clippers), which would help the league develop a live-streaming consumer model. The apps mentioned above can be at the center of the offer.
4️⃣ The NBA is watching what MLS is doing with Apple. Apple will sell MLS subscriptions worldwide. While it’s debatable whether this approach will work with MLS, which is only the top 10 league in the world and nowhere near the best, the NBA is one-of-a-kind in professional basketball. The NBA could take an iTunes approach, selling subscriptions from a single store (no real middlemen due to a redesigned app-based distribution center).
The NBA can do this with multiple partners or just one. Incumbent, ESPN and Turner (who are already partners on the app), plus Apple, Amazon and who knows, could become partners. The NBA could try to do it themselves too, though, I doubt it will.
5️⃣ Let’s be clear: ESPN/ABC and Turner Sports (or similar entities) are not going anywhere. The NBA’s next rights deal in 2025 will include networks with broadcast television as the platform of choice. But it would be surprising if, at least, a third package was not added. And major changes to the way we pay and view local games are sure to be played over the next decade, perhaps sooner.
6️⃣ Dating the late commissioner David Stern, the NBA has historically been very good at figuring out the market. It understands that a younger group of fans take the sport differently. You can see it in the app announcement. It’s not just about watching the full game. It’s about creating a hub for the NBA experience and different ways to view games and highlights. It tries to put fans—especially younger fans—first. It’s increasingly becoming a problem for sport – and the NBA is at the forefront of this issue – that the regular season has lost its importance and if LeBron James does anything spectacular, the spotlight is all over social media in a few moments. The incentive to watch a game live isn’t as great as it used to be, and the NBA doesn’t control relationships when the spotlight is viewed on Instagram.
7️⃣ The NBA used to have two apps, one for domestic viewers and one for international viewers. Now trying to have one-stop shopping. What digital distribution allows business to do is to open stores that are as readily available in Boston as in Bangladesh as long as customers have access to the internet. The NBA has grown the popularity of its sport internationally for a long time. It can sell its games directly to consumers around the world.
8️⃣ The NBA can change the way local games are produced. If the regional sports network (RSN) eventually collapses, the NBA could try to do it all on its own, centrally producing and broadcasting the games. And sell it that way too.
9️⃣ The NBA can also create its own subscription service that can work with RSN. So there might be overall subscriptions for all games, including your local games, but there might also be deals just for Knicks games, for example, where rights holders (MSG, in this case) will see most of the money. The NBA could create its own front door to directly reach fans and/or negotiate with cable companies if cable remains viable.
1️⃣0️⃣ While the form of the plan we’ve outlined so well can happen, it’s no surprise that the NBA is only using this as leverage.
1️⃣1️⃣ To be clear: The league might actually want Sinclair to survive and thrive because, while this is all well and good, the RSN system is still very sweet for the NBA.
The final shot: The digital disruption to distribution has given immense power to the biggest and most powerful global content provider.
The NBA Finals rankings are still important, but there are new games emerging.
So raise your Windhorst index finger and ask yourself about last week’s announcement of the NBA all-in-one global app and say, “Why would the NBA do that?”
It’s a hint of what could potentially happen with the 2025 TV rights negotiations imminent.
Quick Clicks
Amazon fell behind in Thursday’s first half by failing to overcome Dolphins quarterback Tua Tagovailoa, who was injured potentially suffering another concussion just four days earlier. It needs to move faster to deal with the situation. It found its footing in the post-game when Michael Smith, who before becoming a semi-hot taker rose as an NFL reporter, provided solid detail about the NFLPA’s Old position. Ryan Fitzpatrick and Richard Sherman continue to shine. Nice combo. They get an unpleasant truth: Everyone wants to do the right thing, but they also want to win. See the article : The U.S. Senate has called for more research funding by 2023. Meanwhile, Tony Gonzalez may be setting records for weeks in a row without saying anything. … If Rachel Nichols wanted to be considered a journalist—and to completely move on from how her ESPN tenure ended with her firing after her private conversations about networking and race were made public—she might not just do an interview with a company that just hired her, as she did. with Showtime. It’s more like PR. … When things change in coverage, it sometimes happens very slowly, but ESPN extending JJ Redick for three years and TNT hiring Jamal Crawford to replace Dwyane Wade at his Tuesday night studio show could be significant later on. As the next generation of analysts takes control, Redick and Crawford may end up in the middle of the wave for a long time.
… The Yankees and Amazon making the Friday game available at YES was the right decision. The Yankees and Amazon each have a stake in YES, so they share a common goal, but, more importantly, it’s imperative that Judge Aaron pursues trying to reach as many people as possible for the sake of baseball and streaming popularity in the future. . This isn’t an indictment of streaming by also offering games on cable now, it’s an acknowledgment that it’s a new and evolving delivery system. This is analogous to how the NFL still has ESPN and Amazon showing their games on over-the-air TV in relevant local markets. It just makes business sense. That’s why when this issue arose with the Apple TV+ game the previous weekend, there was an argument for Apple to offer the game regionally at YES as well as on its service nationwide. On the other hand, put me on the side that ESPN shouldn’t do live checks as long as every Judge is at bat during college football coverage. Just show him a home run if he hits it. … “Yankees-Dodgers: An Uncivil War” ESPN, really well done. What stands out is how neatly the documentary tells the story of the late 1970s Yankees and Dodgers, featuring complex characters such as Reggie Jackson, Billy Martin, George Steinbrenner and Steve Garvey. It received 4.78 from 5 clickers.
