Due to massive TV rights deals signed with the NFL, NBA and Major League Baseball, media conglomerates Fox and Disney are each looking at long-term sports licensing commitments approaching or exceeding $50 billion.
Disney may have negotiated ample streaming rights for ESPN as part of its recent programming deals, including the just-signed $1.5 billion-a-season agreement with the NBA, but the media conglomerate has no plans to take ESPN a la carte anytime soon.
Disney and Time Warner Inc. paid through the nose to lock up an additional nine years of NBA rights and secured access to one of the most coveted assets in what is now the Sports Age. But according to research company The Diffusion Group, the $24 billion deal left pay-TV--and consumers--vulnerable.
With the pay-TV industry starting to digest the news that Disney and Turner will triple the licensing fees they pay the NBA to around $24 billion over nine years, industry analysts and operators are asking the inevitable question: how are these massive programming costs going to get paid for?
The NBA has announced nine-year extensions of its TV deals with Disney and Turner Networks, tripling its licensing bounty to around $2.6 billion a year and greatly expanding the scope of TV Everywhere access to pro basketball games.
Despite significant recent audience declines among cable's biggest programming networks, and a sudden dip in advertising sales, media conglomerates generally reported strong revenue growth during the second quarter. How do they do it? Is it volume, volume, volume? Not exactly.
Chief financial officers at major media and entertainment companies like Disney, Liberty Media, Microsoft and Time Warner are downplaying economic uncertainty and are setting themselves into the starting blocks for new growth. The focus this time: digital, an Ernst & Young report says.
CBS paid Leslie Moonves $32 million in cash and bonuses last year, about 19 times higher than what CEOs running similar sized companies should make, according to a new study by compensation expert Graef Crystal.
The cable industry is facing an onslaught of new competition from over-the-top players like Amazon's Fire TV, Netflix and more. But the biggest threat is likely coming from Dish Network, which earlier this year inked a carriage deal with Walt Disney, said a group of financial analysts speaking at The Cable Show here.
Dish Network hopes to be online and running with an Internet TV service as early as this summer, Bloomberg reports.