Warner Bros. Discovery talks ‘disciplined’ sports strategy
Warner Bros. Discovery talks ‘disciplined’ sports strategy
After the departure of the NBA, WBD is focused on responding to pay-TV declines with a creative strategy.
Warner Bros. Discovery isn’t looking backwards. The company is faced with the loss of its NBA rights package in the United States following the conclusion of the 2025 season, but WBD execs are trying to shift the narrative surrounding those events. The company wants it known that in a world where pay-TV losses are expected to continue, it wants to follow a steady approach to fiscal soundness, especially when it comes to live sports.
Key Details:
- In its quarterly letter to shareholders, WBD said sports is one area where it will follow a “disciplined” strategy.
- It also said its new deal with the NBA represents a more “efficient” relationship.
- WBD expects losses from its linear TV business to continue in the coming years.
WBD discussed the future of sports at the company in its letter to shareholders that accompanied its quarterly earnings report released on Thursday. In the letter, WBD said that its sports strategy would continue to be “disciplined” going forward, a reflection of the truth in reports that company CEO David Zaslav didn’t want to spend as much as NBC to keep its package of NBA games past 2025.
Despite the very public breakup, the relationship between the NBA and WBD isn’t completely ending. The company will still hold some international rights to the Association’s games, and will continue to produce the popular “Inside the NBA” studio show, which has been licensed to ESPN. WBD’s shareholder letter called that outcome a “far more efficient long-term relationship with the league” than paying billions to broadcast games.
The company is not leaving the live sports game; far from it. But its letter acknowledged that “the U.S. linear television advertising market has deteriorated faster than we expected, as evidenced by our results over the last several quarters,” and that the trend is expected to continue going forward.
That means that WBD will have to be selective about how it spends on sports. Its decision to sublicense a package of College Football Playoff games from ESPN instead of bidding on all of the games is a good example of how the company will proceed in the future.
WBD added more than 6 million streaming subscribers to Max in the fourth quarter, and is restructuring its business to further enhance its streaming arm as its linear networks continue to run out of steam. It’s in a precarious position, which explains why the company is moving forward so cautiously when it comes to sports rights after losing the NBA.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.