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Warner Bros. Discovery wins big from NBA All-Star Game as sports streaming battle ramps up

CNBC’s Julia Boorstin joins 'Power Lunch' to discuss Warner Bros Discovery streaming battle for live sports.

CNBC Television

6 days ago

well Sunday night's NBA Allstar game was a rather controversial points filled exhibition with many purists calling it a joke and demanding changes so no team ever scores 200 points again what was that boom uh that event was important for the sports streaming strategy of Warner Brothers Discovery and its new partners however Julia Bon has more on that in today's Tech check uh this event was carried largely by TBS that's right so the ratings are now in for the NB NBA All-Star games and it aired on
TBS and TNT and it also streamed on Max now Sunday's game averaged 5 a half million viewers that is up 14% from last year a good sign for Warner Brothers Discovery after last year's All-Star Game Drew its lowest ratings on record Now Sports rights like the NBA are a key piece of Warner Brothers discoveries lineup but so far the NBA hasn't really bolstered its streaming viewership UB s and neelson report that since live sports were added to Max in October its percentage of to Total TV viewership
has not grown and now we're coming up on the NBA's exclusive 45-day negotiating window with Warner Brothers Discovery and ESPN ABC that starts March 9th and sports Loom large for Warner Brothers Discovery its lack of NFL rights is seen as a key factor that could drive the media giant to do a deal and now Warner Brothers Discovery is seen as having the most at stake in the streaming joint venture Sports streamer with Disney and fox Morgan Stanley writing that for Warner Brothers Discovery the jo
int venture is perhaps most controversial in that the majority of wbds monthly linear basic cable network economics are tied to networks not in this new sports bundle that means that Warner Brothers Discovery has the most to lose if the bundle drives cord cutting so we'll be watching for how wbd CEO David zazo talks about the importance of NBA rights when that company reports earnings that is Friday morning Tyler I have noticed just incidentally Julia that I tend to see David zazo at a lot of NB
A games lately he's been in a lot of Knicks games I think he was at a Lakers game I don't know whether he was there over the week I didn't see him but but at any rate it that would that would tell you that he is really interested in what happens with the NBA and as you point out they are they are the rare one fox has the NFL ESPN has the NFL yeah and look David zazo has said he really understands the value of the NBA the question is though how much more he and the other media Giants are going to
have to pay to secure those NBA rights especially if you consider the fact it's pretty likely that we have a big Tech Giant in play here as well if you look at Apple or or Amazon Prime video or even YouTube are those companies going to be offering a lot of money for the NBA rights how much much does that drive up the price tag for the likes of David zazo so we know he wants to hold on to the NBA the question really is how much more will he have to pay yeah all right Julia thanks very much Julia
Boron reporting

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