Netflix (NFLX) and Comcast (CMCSA) are reportedly in advanced talks to secure broadcast and streaming rights with Major League Baseball (MLB). The total yearly value of the MLB deals currently in negotiation is expected to surpass the expiring contract of Disney (DIS)-owned ESPN.
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For context, ESPN chose to opt out of its seven-year, $550 million-per-year deal in February. MLB is now negotiating to divide parts of the package, including Sunday Night Baseball, the Home Run Derby, and the Wild Card playoffs, among several different broadcasters.
Comcast, Netflix Eye MLB Rights
According to The Wall Street Journal, Comcast’s NBCUniversal is set to pay around $200 million per year for MLB rights to broadcast games on its network and the Peacock streaming service.
Additionally, Netflix is nearing a deal to secure the annual Home Run Derby for $35 million per year. Notably, other elements of the deal could increase the overall value even further. The deal is set to run through 2028.
Together, NBC and Netflix would cover roughly 43% of the value of the expiring ESPN contract. However, MLB and the media companies are still in negotiations, and no deals have been finalized yet.
The Rationale
Sources say MLB expects its new deals to bring in more revenue than its previous agreement with ESPN.
For NBCUniversal, if the deal is finalized, it will air Sunday Night Baseball when not showing football or basketball, boosting its sports lineup. NBCU would also receive some postseason baseball rights. Meanwhile, Netflix’s move underscores its push to expand sports offerings and attract more viewers for live events.
Overall, the deals highlight the growing competition between traditional media and streaming giants for live sports content.
Is CMCSA a Good Stock to Buy?
Turning to Wall Street, CMCSA stock has received a Moderate Buy based on seven Buys, eight Holds, and one Sell assigned in the last three months. Moreover, the average Comcast stock price target of $39.43 implies a 17.4% upside potential from current levels.
