The NBA’s contract with Amazon includes a “Successor Technology” clause, which opens the door to new and evolving distribution models during the course of their 11-year agreement, according to Puck.
Beginning in 2028, Amazon has the option to integrate innovative technologies for NBA broadcasts, allowing them to adopt new formats that could arise, with NBA content potentially delivered in advanced ways.
With rapid developments in virtual and augmented reality, the NBA might one day argue that such technologies fall outside the scope of the current agreement with Amazon, possibly leading to re-negotiations.
Alternatively, Amazon could opt to bundle NBA broadcasts into an innovative model using new technology as part of its Prime service, creating a unique streaming experience for fans.
Puck’s analysis suggests that the contract’s vague wording on these future technologies is an intentional move by both parties, with a plan to address any issues later if they arise.
As Puck noted, “It feels like the parties settled on weak, ambiguous contractual language and decided this would be a ‘tomorrow problem.'” This ambiguity could potentially lead to a major dispute if differing interpretations arise around these future rights.
The NBA has faced a similar scenario before, as it navigated the shift from traditional cable to streaming by moving from its long-term TNT partnership to Amazon.
This shift highlights how technological evolution can create unforeseen challenges and negotiations in sports broadcasting rights.
NBA's Deal With Amazon Has 'Successor Technology' Clause https://t.co/kyqUM8f23b
— RealGM (@RealGM) November 8, 2024
