Puck
@PuckNews
The inside story at the nexus of power, money, and ego. Built in partnership with a team of elite journalists, Puck begins where the news ends.
09-06-2021 01:58:19
4,5K Tweets
69,1K Followers
646 Following
Puck Jon Kelly Peter Hamby WBD has NBA for fiscal year 24’ and 25’. Debt reduction at current pace means they don’t need networks in three years time. That was always the plan. Linear pay TV IS DONE. No way should they anchor themselves to a massive NBA contract. Sports rights are not necessary for DTC.
Josh Mackenzie Puck Jon Kelly Peter Hamby Right, I do agree that the sentiment will be much less dramatic if they can continue doing the NBA deal.
It's likely a much simpler time to negotiate terms with the NBA with the cable company.
NBA needs WBD too, if they kill WBD, no more competition for their content.
Will Sun Puck Jon Kelly Peter Hamby It’s all about the opportunity cost. DTC gets capitalized at 20x EBITDAX. Networks at 3x-4x. There is lots of data that shows sports simply are not a large driver of DTC adoption. WBD can make 12! $200mm series a year for the cost of NBA. GOT, Harry Potter, DC, new IP etc.