David Zaslav says ditching the NBA was a 'great decision' for WBD
David Zaslav spoke at a conference about how WBD will reinvest in other franchises when it finishes its NBA TV deal.
Rodin Eckenroth/WireImage
- Warner Bros. Discovery drew criticism for its decision to end its TV deal with the NBA.
- WBD CEO David Zaslav said, "Not doing the NBA was a great decision" for the company.
- He said at a conference that WBD would turn its attention to franchises it owns, like Harry Potter.
When Warner Bros. Discovery decided to end its 35-year partnership with the National Basketball Association, some industry insiders worried the company was making a huge mistake. CEO David Zaslav is putting those fears to rest.
"Not doing the NBA was a great decision for us," Zaslav said at a Morgan Stanley conference on Tuesday.
WBD's latest distribution deals with Charter and Comcast have shown that the company can still secure higher rates for most of its TV networks without the NBA, as Business Insider previously reported.
The company is also investing in other sports. It's kicking off a new deal with NASCAR this year, and has picked up more rights to college sports.
Not having the NBA also saves WBD money. The NBA's last TV contract was worth $24 million over nine years and the league scored a big increase with its latest deal. The new 11-year contract with Disney's ESPN and ABC, Comcast's NBC, is worth $76 billion.
WBD is pivoting to bolster its own franchises
Without the NBA, Zaslav said WBD can reinvest in franchises it already owns and generate more revenue. New content is coming to its Harry Potter, Lord of the Rings, DC Universe, and Game of Thrones franchises.
Zaslav thinks this move will provide some stability to the company as it continues to work with distributors to get its content to more people. Its recent pay-TV deals with Charter and Comcast let those cable companies bundle Max with their services, effectively making it free for those subscribers.
Zaslav said the company can monetize franchises it owns through content and merchandising, more than it can with sports.
"We own those," Zaslav said. "Sports is a rental business, and so you got to look and say, 'Are we going to be able to make money on this?'"
