- Warner Bros. Discovery aroused criticism of her decision to end his television agreement with the NBA.
- WBD CEO David Zaslav said: “Not doing the NBA was an excellent decision” for the company.
- He said at a conference that WBD would turn his attention to the franchises he owns, like Harry Potter.
When Warner Bros. Discovery has decided to end its 35 -year -old partnership with the National Basketball Association, some industry initiates feared that the company will make a huge mistake. CEO David Zaslav puts these fears.
“Not doing the NBA was an excellent decision for us,” Zaslav said at a conference by Morgan Stanley on Tuesday.
The latest WBD distribution agreements with Charter and Comcast have shown that the company can always obtain higher rates for most of its television networks without the NBA, as previously reported Business Insider.
The company also invests in other sports. He is starting a new agreement with NASCAR this year and has taken more rights over university sports.
Not having the NBA also saves WBD money. The latest NBA television contract was worth $ 24 million over nine years and the League has marked a strong increase with its last agreement. The new 11 -year contract with Disney’s ESPN and ABC, NBC de Comcast, is worth $ 76 billion.
WBD pivots to strengthen its own franchises
Without the NBA, Zaslav said WBD can reinvest in the franchises he already has and generate more income. New content arrives on his Harry Potter, Lord of the Rings, DC Universe and Game of Thrones franchises.
Zaslav thinks that this decision will offer a certain stability to the company when it continues to work with distributors to obtain its content to more people. His recent paid television deals with Charter and Comcast, these cable cars bring together Max with their services, which makes him free for these subscribers.
Zaslav said that the company can monetize the franchises it has thanks to content and merchandise, more than what it can with sport.
“We have them,” said Zaslav. “Sport is a rental company, so you have to watch and say:” Are we going to be able to make money on this? “”
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