Netflix Drops Out of Oscars TV Rights Auction, NBCUniversal Takes the Lead with ABC Staying Firm: Exclusive

With only eight weeks left before the Academy Award nominations are announced, the race to secure the TV rights to broadcast the Oscars is heating up. The Academy of Motion Picture Arts and Sciences (AMPAS) has been actively negotiating for a new broadcast licensing agreement for 2025, which is crucial both as a strategic partnership and a major revenue source. This deal plays a pivotal role in maintaining AMPAS' financial stability and reinforcing the Academy's commitment to promoting theatrical movies as the pinnacle of the art form.

As the Academy seeks a contract spanning 5 to 10 years, the competition for the Oscar broadcast rights has intensified, with a mix of traditional and unconventional bidders entering the fray. According to sources familiar with the discussions, Netflix is no longer in the running. Despite initial interest, the streaming giant, now under the ownership of Warner Bros., has withdrawn from the negotiations.

Meanwhile, NBCUniversal has emerged as a serious contender. The Comcast-owned company, following a successful Summer Olympics broadcast in 2024, has ramped up its focus on live entertainment, cementing its place as a leading player in the industry. NBCUniversals strong relationships with top talent and its robust portfolio of content deals, including over 20 talent agreements, position it as an attractive partner for the Oscars. Additionally, the upcoming 2028 Los Angeles Olympics offer significant marketing synergies that could benefit NBCUniversals first Oscar broadcast in 2029.

YouTube remains an active bidder as well. As a dominant platform for video consumption worldwide, YouTube has become a critical player in digital entertainment, with millions tuning in for Academy Awards clips and speeches. Despite its success in generating massive viewership, YouTubes involvement poses a challenge due to its status as a tech giant. Some fear that allowing the Oscars to stream exclusively on YouTube could dilute the ceremony's prestige, particularly if it is surrounded by non-related content.

ABC, which has been the Academys broadcast partner for decades and will continue airing the Oscars until 2028, is also in the mix. The networks long-standing relationship with AMPAS has made it the traditional home for the Oscars. While sources close to ABC suggest the network is deeply invested in continuing this partnership, there are indications that it may not be as aggressive as other bidders. Additionally, ABC recently signed a major deal with the Grammys, which could signal a shift in its commitment to the Oscars.

Despite ABCs historical association with the Academy Awards, financial considerations are becoming increasingly important in the negotiations. It is reported that ABC currently spends approximately $120 million annually for the Oscars, covering the rights, production costs, and other related expenses. This figure has raised concerns given the challenges of declining viewership across award shows in the streaming era. The 2023 Oscars, hosted by Conan OBrien, saw a ratings increase to 19.69 million viewers on ABC and Hulu, but still far from the nearly 40 million viewers a decade ago.

For YouTube, the situation is more complex, with expectations that the Academy would demand a premium to sell its rights to an exclusively digital buyer. Some industry insiders have raised concerns about the optics of broadcasting such a prestigious event on a platform associated with non-cinema content. There are also worries about the Oscars potentially being followed by unrelated videos, such as children's programming, which could undermine the prestige of the event.

As the bidding war for the Oscar TV rights continues, one thing is clear: the financial terms of the deal will be crucial, and neither NBCUniversal, ABC, nor YouTube is willing to overpay for the broadcast rights.