Broadcast partners could face significant fallout from coronavirus cancellations, and sources said that networks that carry NBA games will "take a substantial hit to advertising revenue and could potentially be on the hook for big rights-fees payments," according to sources cited by Mullin & Rizzo of the WALL STREET JOURNAL. Sources that losing NBA games will "leave a major hole in the TV networks’ prime-time schedules, translating into lower ratings that will harm their ad sales -- especially if the season doesn’t resume for the playoffs that normally begin in April." A report by LightShed Partners analyst Rich Greenfield said that "networks’ other major stream of revenue -- from the channel-carriage fees paid by cable-TV distributors -- also could be impacted," as distributors "require some TV programmers to air a minimum number of games; if they don’t, the carriage fees could be cut." Mullin & Rizzo note the "suspension of the major sports leagues could have wider implications for the pay television industry," particularly as cable and satellite TV providers have "lost millions of subscribers to cord-cutting." MoffettNathanson analyst Michael Nathanson said that live sports has "been one of the major selling points of the traditional TV bundle," adding that that the NBA’s suspension "could potentially accelerate pay-TV cancellations." Sources said that the league "could work with TV networks to help them mitigate any losses from advertising and distribution partners, including by letting them air more NBA games in subsequent seasons" (WALL STREET JOURNAL, 3/13).
STUFF TO SORT OUT: In N.Y., Andrew Marchand writes the "entirety of the fallout of not having" the NCAA Tournament has "not been settled yet as the networks and the NCAA will have to go through all the fine print of what was a complicated contract extension signed" in '16. The current deal runs through '32 and "eventually rises to more than" $1B per year. The NCAA "could possibly extend the contract by one more tournament as a make-good, but that is just an idea, far from a known solution." There are "financial considerations that may be part of the deal that could offer relief, as well" (N.Y. POST, 3/13).
FILLING THE VOID: In Chicago, Jeff Agrest writes mass cancellations will "send network schedule-makers back to the drawing board with the loss of hours upon hours of live game programming." They will be "challenged to fill their lineups in the weeks ahead until games resume." ESPN is "best positioned to fill its holes with live programming." On Thursday, it "stayed live with 'SportsCenter' all day and night." The network "interviewed coaches and analysts and provided reports from the tournament sites." ESPNews aired its "usual radio simulcasts and taped programming to fill additional holes." ESPN2 simulcasted a "combination of both channels" (CHICAGO SUN-TIMES, 3/13).
