The NBA has passed its pandemic season, now seeking 5G and VR in a post-Covid world

Mark Tatum couldn’t do it.

The National Basketball Association deputy commissioner was asked to describe the league’s 2019-20 season in one word and found it too difficult.

Keep in mind that before the pandemic and social unrest hit the world, the NBA lost two of its icons in former commissioner David Stern and Kobe Bryant. And this time last year, it started a rift with its international trading partner, China. The NBA has said the dispute could cost $ 400 million.

“I’d say it’s been a challenging year,” Tatum said in an interview with CNBC. “It’s been our longest season in NBA history, and a lot was thrown at us collectively as a league.”

Following the Covid-19 disruption on March 11, the NBA was able to restart its season on a bubble campus in Orlando. Early estimates suggest the NBA protected $ 1.5 billion by resuming rather than canceling its season, according to Sports Business Journal.

Now comes the hard part: calculating finances and determining a salary cap for next year.

Tatum said the NBA is still working on the audit process with the National Basketball Players Association. The parties must also agree on a start date for the next season.

Tatum said the league learned a lot from its bubble environment and envisioned new capabilities due to the availability of 5G, which wireless carriers have been installing in stadiums and sports arenas across the country.

The NBA partnered with AT&T to create hologram interviews during television broadcasts on Turner Sports and ESPN. This could open the door to more marketing revenue, as companies could use NBA teams and players to activate sponsorships and incorporate fan engagement.

Tatum said, “Overall, 99% of our fans never set foot in an NBA stadium”; so the league needs to further explore the possibility of bringing its content to fans outside of television.

Facebook continues to work behind the scenes to improve its seating offerings on the VR pitch. The social media company worked with the NBA on its “rail camera” during the bubble. Without spectators, the side camera was able to capture NBA action at game speed.

Facebook can use the content to better authenticate the on-court experience and integrate with your Oculus VR headset. The company released a cheaper version of the headset, Oculus Quest 2, for $ 299 on October 13.

The 5G expansion should help Facebook improve its presentation on the pitch, said Stuart Burden, a senior software engineer at digital business consultancy Nerdery.

“That has been the problem with [virtual reality] NBA games, “Burden said, referring to the resolution issues.” You can barely [determine] the face of the players. It was a little blurry, but the exciting thing was, given that point of view, you felt a little more immersed. “

Rob Shaw, director of Facebook’s Global Sports Media and League Partnerships, said the company will incorporate better camera lenses to improve video quality.

“If you’re going to watch a game from the front row, you have to feel like you’re watching it from the front row,” Shaw said. He used filmmaker Spike Lee’s seat at Madison Square Garden, where he watches the New York Knicks, as an example of what’s to come.

“What you must see, what you must hear, to be on the level of the best athletes in the world,” Shaw said. “That experience is something that I hope will be brought to the platform in three or five years, so that people around the world can have the same experience as Spike Lee watching a Knicks game.

Once Facebook can figure out how to monetize the courtside seat, it’s another publicity opportunity: one aimed personally at the NBA fan who attends a game through a VR seat.

Shaw said NBA teams have stepped up to add VR seats for season ticket holders as clubs prepare to start the season with no spectators or limited attendance and proximity due to Covid-19.

“I think it’s one of those opportunities where we’re just scratching the surface right now,” Tatum said. “As bandwidth speeds get faster, as 5G gets faster, that experience will become more immersive, and I think the opportunities will grow for people to want to experience that and adapt to reality. virtual”.

The NBA also plans to continue developing virtual signage. Both the NBA and the National Hockey League are monitoring technology around interchangeable virtual ads that can open advertisements.

After a one-year absence, China was back online on October 9 for Games Five and Six of the NBA Finals, with the Lakers and Miami Heat.

NBA executive Daryl Morey initiated a rift with the NBA’s most important international partner when he supported the Hong Kong protesters via Twitter last October. China then responded by suspending NBA games broadcast on CCTV. The NBA’s streaming partner, Chinese tech giant Tencent, also briefly blocked the games.

The Lakers’ popularity in China also aided the return of NBA games. In addition to China’s admiration for Bryant, the team increased its following on social media by more than 800,000, according to digital and sports consultancy Mailman.

Morey resigned his role as general manager for the Houston Rockets on October 15, six days after games resumed on CCTV. But the concern is whether the NBA has fully recovered in China after the fallout. The NBA did not respond to a request for audience numbers for the two Finals games that aired in China.

The league can’t afford more damage in a more than $ 4 billion operation in the world’s second-largest economy, especially since it just opened up international marketing for its teams and has its eyes on streaming e-commerce opportunities. Live.

The purchasing model allows companies and influencers to broadcast potential purchases live with consumers. According to Bloomberg, the shopping experience attracted $ 60 billion in global sales.

Through its partnership with Tencent, the NBA has a presence on WeChat (400 million daily active users) and recently launched on the Kuaishou live streaming and short video platform. TikTok’s rival is a live streaming e-commerce giant in China, and in September it said that purchase orders placed through its platform reached 500 million in August and claims it has 300 million daily active users.

In the United States, the NBA’s ratings have not been as strong.

A decline in sports ratings affected the Lakers-Heat Finals, which posted lows the NBA hasn’t seen since 1994. The league’s stance on social injustice issues may also play a minor factor.

Tatum said the league is not concerned about the declining viewership. He offered additional social media metrics to demonstrate “tremendous interest” in the league and mentioned the billions of video views and more than 300 million views on YouTube during the playoffs, up 63% from last year, he said. .

The NBA is further advocating falling ratings due to changes in the way people consume sports.

“These are things that affect not just us, but all other sports leagues,” Tatum said. “But we understand that the numbers are what they are.”

Tatum said the season is a “complete anomaly,” but if so, the NBA audience will need a strong comeback. Network experts suggest that demand for NBA content will not be affected, especially as sports play increases.

Additionally, the NBA wants to explore the possibility of adding gameplay next season, as the model did well during her bubble, drawing positive viewership numbers for a Saturday game between two small-market teams: Portland Trail Blazers and Memphis Grizzlies.

But with the longest season in NBA history, Tatum looked to the challenges. When asked to sum up the future of the league in one word, the difficulty dissipated.

“Excited,” Tatum said.

“We have incredible potential in the future,” he said. “I think the growth that we are seeing in our business will continue to increase.”