WBD Ad Sales Sink Without NBA Live Rights
WBD’s fiscal second-quarter revenue fell 11%.
Warner Bros. Discovery, parent company of TNT Sports, experienced a significant decline in ad sales due to the loss of NBA live rights, according to their recent earnings report. The company's fiscal second quarter saw revenue drop 11% to $8.7 billion, falling short of Wall Street's expectations, while net income plummeted 91% to $149 million.
This downturn was particularly acute in the spring quarter, which usually coincides with the NBA playoffs – a period TNT Sports was absent from this year as the league secured new rights deals with Amazon, ESPN, and NBC Sports. WBD CFO Gunnar Wiedenfels attributed a substantial portion of the revenue drop, nearly 22%, to the absence of the NBA, which severely impacted advertising revenue across multiple platforms.
The loss of live NBA content was largely responsible for the 30% increase in operating expenses for TNT Sports' linear networks, as WBD no longer had to pay fees for NBA live rights. While the company has successfully shifted focus to other content like French Open tennis, college sports, and existing rights for top-tier events, the absence of the NBA's ad dollars is notably missed.
Despite these challenges, WBD remains optimistic about its long-term future, with the $110 billion takeover by CBS Sports parent company Paramount still uncertain due to legal challenges from a group of 12 states.
Written by urgent.news from Front Office Sports's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
