Pre-sales mask uncertainty
Warner Bros. found that it had completed preliminary negotiations for its U.S. television, but did not disclose the advertising revenue it received. This omission is prominent. Competitors such as NBCuniversal, Fox, Disney, Paramount and Televisaunivision have released data on data that are stable or increased in advertising commitments.
“There is a strong price and elastic demand for sports programs and is priced for general entertainment,” Warner Bros. found in a shareholder letter released Thursday. However, it does not state whether the total number of transactions in transactions is up or down compared to 2024. Historically, this lack of such details often marked a sign of decline.
The impact of losing NBA broadcast rights
One of the main factors that influenced Warner’s situation was the loss of NBA rights – a relationship that dates back to 1989. There are no online games on the Alliance Network, starting from the end of 2025, and the company is expected to lose $1.1 billion in TV ads by 2026. According to Moffettnathanson Analys Robert Robert Fishman, the current TV advertising revenue is approximately its current TV advertising revenue.
Meanwhile, NBCuniversal, which recently won an 11-year NBA rights agreement, reported record upfront sales. NBC said NBA-related advertising commitments grew by 15%, with 25% of advertisers being new to traditional TV. Other networks have also benefited from upcoming major events such as the Super Bowl, the Winter Olympics and the FIFA World Cup.
Warner executives’ cautious optimism
In a call with investors, Warner CFO Gunnar Wiedenfels will soon lead the new derivative of Warner TV assets, raising optimism. “We have seen prices rise in all categories and prices are higher in sports than in general entertainment,” he said. “There is some pressure on price pressure on the digital side, but the quality of inventory we provide us maintains a very strong price premium.”
Strategic Crossroads
The end of Warner’s NBA deal can free up cash to invest in other content. However, without Marquee Sports programming, the company would lose its main selling point for advertisers. Warner explicitly acknowledged the challenge in its shareholder letter: “We will start owning the NBA in the U.S. in the fourth quarter, which will affect advertising revenue and revenue costs.”
