If the NBA were a player and its media partners were its coaches, the message to the league would be simple: You are underperforming after signing your big new contract.
A month into the season, the
NBA’s ratings are down 28% on ESPN through Nov. 21. Meanwhile, the ratings for its games on TNT are flat at 1.8 million viewers per game, while ESPN is slightly behind at 1.77 million viewers per game. This comes after every major studio fell over itself vying for the rights to air NBA games this year, resulting in a $76 billion total deal.
What’s behind the league’s popularity decline? While it is tough blame any one factor, analysts say the NBA has too many regular-season games and lacks continuity, with players changing teams more frequently and teams changing uniform designs more often, which has confused and turned off some fans. The NBA’s social justice focus, starting with Black Lives Matter, made the league a target for conservative pundits and turned off right-leaning viewers. And the league and its players have shown a penchant for not valuing the regular season enough — coaches are still resting star players for long stretches to save them for the playoffs — which has further hurt fan engagement.
The ratings drop has been conspicuous — and potentially worrying — considering the NBA signed its
11-year, $76 billion TV deal this past summer. The new deal, which nearly triples the annual revenue the league brings in from its current contract, will see the league remain on Disney-owned ABC and ESPN, plus bring games to Amazon’s Prime Video and NBCUniversal, starting next year.
Wall Street analysts, however, said it’s too early to panic.
“All of these media partners have entered into long-term deals with the NBA, and I’d say they’re all very excited about the path ahead and the trajectory of the league,” MoffettNathanson senior analyst Robert Fishman told TheWrap. “And so any sort of short term ratings blip is really not what they’re focused on.”
Still, the networks bet big on basketball, and the ratings dip means the cost to acquire viewers is going up. The increasing premium placed on sports rights and live entertainment helped spur a bidding war for the NBA’s TV packages. At the same time, the rise of streaming added new deep-pocketed bidders to the market — ultimately leading to Amazon securing its NBA package for $1.8 billion per year.
“There's just too much awareness that an individual game really doesn't matter,” one league analyst tells TheWrap The post Why the NBA’s Ratings Are Down Big — and Why Its New Media Partners Should Care appeared first on TheWrap.
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