Many people have substituted cable TV with a Roku device; will you be next?
Cable TV isn’t cheap. The average price you’re paying for it has doubled in less than 20 years and there is no indication this trend will ever stop. However, this still hasn’t prevented over 66 million households from subscribing to it and you’re probably one of them.
Unless you’re a cord-cutter.
This small (and growing) group of people are tired of paying high prices for channels they don’t need and are relying on the Internet to provide them with entertainment. And while it’s easy to substitute TV shows and movies with devices like the Roku, the lack of live sporting events has prevented potential cord-cutters from canceling their cable service. But things are about to change.
The NBA Extends TV Partnerships and Throws in Some Surprises
The NBA made a major announcement that could impact the cable TV industry in a big way.
The NBA announced today they are extending their partnership with Turner Broadcasting (TNT) and the Walt Disney Company (ESPN/ABC) through the 2024 season. The nine-year deal is valued at $24 billion and is nearly triple the annual average rights fees ESPN and TNT are currently paying to broadcast NBA games.
The new agreement will obviously earn the NBA a lot of money, but basketball fans will also be reaping some major benefits.
“The Walt Disney Company and Turner Broadcasting share responsibility for the growing popularity and interest the NBA enjoys, and we are thrilled to extend our partnerships. With these new agreements, our fans will continue to benefit from the outstanding NBA coverage and programming provided by ABC, ESPN, TNT, NBA TV and their digital platforms.”
–Adam Silver, NBA Commissioner
Commissioner Silver was not exaggerating when he said he is “extending” the NBA’s partnerships. Not only will TNT, ABC, and ESPN televise more regular-season and playoff games in the upcoming years; but ESPN is also being granted enhanced digital rights to provide NBA content for multiple ESPN platforms. The NBA is also expanding their digital presence on TNT, providing sports fans with a compelling reason to finally cut the cord.
NBA Digital Agreement Highlights
- TNT
o 64 regular-season games per year, up from 52 games
o 45 playoff games during the first two rounds
o TV Everywhere rights that allow for NBA content airing across Turner Broadcasting networks to be streamed live, delayed, and on-demand across digital platforms
o Digital media rights, including streaming TNT NBA games on a live, delayed, and on-demand basis across all of its multimedia platforms
o Broader rights to distribute, via digital platforms, its NBA games and non-game programming, as well as new NBA-related content, on a live and on-demand basis
o Interactive online elements such as selected camera angles, statistic feeds, and video to complement TNT game telecasts
o Enhanced content/digital rights to NBA content for Bleacher Report
o Exclusive broadband and other content for digital platforms, including studio shows
- ESPN
o 85 regular-season games, up from 70 games
o 30 playoff games in the first two rounds
o Up to 20 NBA Summer League games on ESPN and ESPN2
o Enhanced digital media rights to deliver NBA content for ESPN platforms, including ESPN.com, WatchESPN and ESPN podcasts
o Opportunities to stream ABC, ESPN, and ESPN2 games on a live, delayed and on-demand basis across all of its multimedia platforms
It may appear like TNT received a lot more digital access to the NBA, but that’s only because ESPN’s deal is a lot sweeter. So much sweeter that it may actually eliminate the need for basketball fans to pay for cable.
ESPN is Setting a Precedent, but Will Others Follow?
The WatchESPN app features much of ESPN’s best programming.
ESPN’s WatchESPN app has already replaced the ESPN channel for a lot of sports fans. The app features much of ESPN’s best programming and essentially makes the channel on your TV useless. The only downside to this is that it also requires a cable TV subscription to take advantage of it – until now.
Under the NBA’s new agreement, ESPN is also expected to launch an online-only streaming service that doesn’t require a cable TV subscription at all. The NBA hasn’t confirmed how much this will cost or what content will be available, but it’s a major step in the right direction for broadcasters to eventually sever ties with cable companies – and for sports fans to finally cut the cord.
Other major sports leagues like the NFL, MLB, and NHL already offer some pay-for-streaming programming; but this move clearly puts ESPN in a position where they can set a major precedent. The only question is: Will other broadcasters join them?
Earlier this year, NBC streamed most of the Sochi Winter Olympics online. Last summer, ESPN and Univision did the same thing for the World Cup. The only catch was that the most popular content wasn’t made available or cost a fee. Events like the Opening Ceremony of the Olympics and the World Cup Final were out of reach for many cord-cutters — and for good reason.
Live sporting events are some of the most lucrative for television networks. This is why it costs millions of dollars to air a commercial during the Super Bowl and why the NBA is able to charge $149 a season for access to out-of-market games via the NBA League Pass. In order for ESPN to completely eliminate the need for cable TV, they will need to make some drastic moves.
But that probably won’t happen any time soon.
As great as an NBA live-streaming service from ESPN is, it will take time for people to be convinced the Internet is capable of replacing their TV programming. And while 40% of people ages 17-34 would consider replacing their cable TV subscription with streaming media, this percentage needs to be a lot higher for the TV networks to take notice.
Or – if you’re like me – maybe today’s announcement is enough to make you consider cutting the cord once and for all.
Do you think the NBA/ESPN streaming deal will be enough to convince basketball fans to cut the cord? Are live sporting events holding you back from cutting the cord? Are the days of cable TV numbered? Let us know in the comments below!
