Major Chinese internet companies, such as Alibaba and Yahoo, are eager to get their hands on top content in an effort to win over the increasingly plugged-in younger generation.
Alibaba CEO Jack Ma last year said he was looking for partners in Hollywood to show movies through the company's products. As such, this deal will be viewed as a major win for Tencent.
Speaking to CNBC earlier this month, two-time NBA champion and former Houston Rockets star Hakeem Olajuwon told CNBC that the NBA has made great strides globally.
"Tthe NBA has become a truly international league - the best league in the world," Olajuwon told CNBC in a TV interview.
"The business is already in China, it is the fastest-growing market. NBA has done a fantastic job connecting the Chinese audience to the NBA basketball."