NBCUniversal's NBA Bet on Peacock

NBCUniversal has finalized a significant broadcasting agreement with the NBA, committing to a $2.45 billion annual deal over 11 years, set to commence in the 2025-26 season. This strategic move follows successful research indicating that subscribers to NBC's Peacock streaming service, who initially signed up for the NFL Wild Card game, continued to engage with non-sports content, reinforcing NBC Sports' decision to pursue the NBA rights aggressively. The NFL Wild Card game, which cost NBCUniversal $110 million, reportedly attracted 3 million new subscribers to Peacock, bolstering confidence in the platform's potential to retain NBA fans beyond the basketball season. NBC Sports executives believe that these new subscribers will also explore other live sports offerings available on Peacock, including NFL games, golf, and WWE, suggesting a trend where sports fans remain engaged with diverse content after their initial subscription. Despite the high stakes, Discovery opted not to compete for the NBA rights once the deal surpassed $2 billion annually. While NBC's "Sunday Night Football" averaged 21.4 million viewers per game last year, NBA regular-season games drew an average of 1.6 million viewers across competing networks. NBCUniversal aims to leverage the NBA's popularity to enhance its standing against other media companies in future negotiations for sports rights and entertainment projects. Financial analysts predict that the NBA deal will become profitable for Comcast by its second year, with an estimated $192 million in additional Peacock revenue in the first year, potentially rising to $420 million by year four.