As a sign of the changing fortunes of basketball, the new deal will result in fewer games being shown on terrestrial television.
Disney's ABC network will air only 15 normal games, five playoffs and the NBA Finals. This is two-thirds less than the games previously shown by the General Electric-owned NBC network. NBC and Turner Sports previously held the rights, for which they paid around £1.7bn over four years.
Comparatively, the size of the deal represents the smallest increase for the NBA since 1983.
NBC certainly had no qualms about jettisoning the sport from its schedules. With falling ratings for basketball, NBC has said it lost more than £70m a season in its deal with the NBA.
Under the new deal, AOL-owned Turner will air around 45 NBA playoff games, including conference semi-finals and conference finals. It will also screen the NBA All-Star game, the first time a cable station has done so.
Disney-owned ESPN and ESPN2 will televise 75 regular-season games and up to 24 playoff games, including up to seven exclusive telecasts of the conference finals. ESPN2 will debut a weekly programme featuring highlights of all current NBA action.
The new deal could lead to the launch of a new, jointly owned sports cable network between AOL and the NBA. AOL said it would be a 24-hour channel, broadcasting 96 NBA games, as well as motor racing, tennis, golf and other sports programming.
America Online will become the NBA's official ISP, and will run NBA promotions across its various brands. The deal expands on relationships previously held between the NBA, Turner and AOL.
AOL Time Warner chief operating officer Bob Pittman said the agreement showed the company's commitment to sport. It also has agreements with the NFL and NASCAR.
At the close of trade yesterday, AOL Time Warner shares, listed on the New York Stock Exchange, had fallen by 3.9% to $28.40.
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