One of the NBA’s great strengths is its core audience is younger than the other major American sports.
One of the NBA’s great challenges is its core audience is younger than the other major American sports.
That means a lot of NBA fans are cord cutters — or, never had a cord to begin with — and don’t consume their entertainment the way their parents and grandparents did. Much the way we do a poor job measuring the economy by doing it the same way we did a century ago, using traditional Neilson rating measures is a poor way to judge the number of eyeballs on a game. Viewership is evolving.
But make no mistake, traditional ratings are down for the NBA, both nationally and at the regional level. Nationwide ratings are down by 12 percent, including 13 percent on TNT and 16 percent on ABC. Only three NBA teams — the Utah Jazz, Memphis Grizzlies, and Toronto Raptors — have seen a local ratings increase this season, the other 27 teams are flat or down, according to the Sports Business Journal — and down by 13 percent.
NBA Commissioner Adam Silver owned the drop during All-Star weekend. He added that while the league could blame injuries to players that would be draws — Stephen Curry and Klay Thompson with the Warriors, Zion Williamson with the Pelicans, Kevin Durant in Brooklyn, etc. — the bigger issue is connecting those younger viewers to NBA broadcasts.
“It’s well-known that on one hand we’re celebrated by some because we have such a young fan base, but that young fan base is disconnecting from pay television in record numbers, and by disconnecting, not just simply not subscribing to cable or so-called cutting the cord, they’re not watching traditional paid television the way they used to,” Silver said during his All-Star weekend press conference. “They’re watching over-the-top streaming services. They’re watching screens, but it’s not essentially pay TV.
“So the good news for the league is that, when we look at all other data points, particularly what we see in social media, what we see in terms of distribution of highlights and general chatter around our games, we’ve never been more popular. But we haven’t found a way to connect those young fans to our broadcast through whatever platform they’re going to be delivered.
“Again, I think it’s a very solvable problem. Our two primary media partners, Disney and AT&T, are both very engaged in these issues…
“So it’s not an issue unique to the NBA. We may be affected by it a little bit more compared to some properties because we have such a young fan base, but I’m super confident over time we’ll work through it because there remains enormous interest in our players and our game.”
Silver also showed at the NBA’s tech summit where he thinks the broadcast of NBA games is headed, trying to bring the courtside experience into the home (with an assist from Bill Murray).
Silver isn’t alone in thinking this way. Dallas Mavericks owner Mark Cuban, for one, said basically the same thing recently.
A well-respected media consultant recently told Forbes magazine he doesn’t think this ratings downturn is going to hurt the league in 2025 when it’s time to negotiate a new broadcast deal.
“This season’s NBA ratings story is silly. It is a small sample size. This is a year-round league with year-round stories,” says sports media consultant Lee Berke of LHB Sports. “The next NBA media agreements will be a substantially evolved set of deals because of streaming. There will be an increasing range of media companies that want the NBA for the U.S. and worldwide.”
The current $2.7 billion per year NBA deal with ESPN and TNT runs through the 2024-25 season, and Berke expects the next deal to roughly double in value.
That’s the vision Adam Silver sees. It’s just a matter of figuring out how to connect those young viewers to the content. Then to stop measuring viewership the way our grandparents did.