Netflix's Lucrative Business Move into Live Sports
How Netflix is Redefining Streaming with Boxing, Football, WWE, and the Future of Sports Broadcasting
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Netflix isn’t just for television series and movies anymore, It’s transforming how we watch sports and it’s only the beginning.
My first taste of this new direction was while watching the anticipated Mike Tyson vs. Jake Paul boxing match back in November. It was promoted for over a year and held at the AT&T Stadium. Unlike the traditional pay-per-view boxing format, Netflix offered the event directly on its platform. While the event faced some inevitable glitches and feedback from social media (common for a first-time venture of this scale and large volume of viewers) the overall experience was impressive.
It left many viewers questioning: Since when is Netflix is showing live sports?
It’s a surprising move for the streaming giant, but in the context of how we consume content today, it makes perfect sense. For a platform primarily known for binge-worthy series and films, sports seemed like uncharted territory. However, the move feels like a natural evolution. We live in an era dominated by streaming services. I remember sitting in my ‘mass communication’ college class back in 2019, predicting that everything would eventually migrate to streaming.
Now, in 2024, Netflix is proving that prediction true.
A Strategic Play 🏈
Beyond boxing, Netflix had a deal with the NFL where they showcased a Christmas Day special: the Kansas City Chiefs vs. Pittsburgh Steelers and the Baltimore Ravens vs. Houston Texans. To top it off, Beyoncé delivered a halftime performance in her hometown of Houston. This wasn’t just a win for fans it showed the serious money Netflix and the NFL are putting behind this partnership. Clearly, Netflix is showing they’re not afraid to spend big to make it happen.
As for what’s next, Netflix has locked down exclusive broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031. And starting in January 2025, it’ll be the new home for WWE, taking over from the USA Network to stream Raw, SmackDown, NXT, premium live events, and more.
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Why This is a Brilliant Business Move
🛋️ Seamless Access for Viewers: With most consumers already subscribed to Netflix, adding live sports eliminates the need to juggle and hassle multiple streaming platforms.
💵 Cost-Effective Convenience: No extra fees for pay-per-view or additional sports subscriptions. You’re getting more value from a service you already use.
🤝 Increased Loyalty and Engagement: By integrating sports into its existing library, Netflix strengthens its value proposition. Subscribers who may initially tune in for a game are likely to stick around, exploring other content and reinforcing their loyalty to the platform.
🔴 Innovation in Sports Broadcasting: Netflix’s entry could disrupt traditional sports broadcasting, encouraging innovation in how live events are presented. The platform’s expertise in storytelling and production offers the potential for unique angles, behind-the-scenes access, and a more immersive viewing experience.
Natalie’s Personal Predictions 💭
If Netflix continues building lucrative partnerships like it has with the NFL, FIFA, and WWE, it’s not far off to imagine even bigger opportunities. We could eventually see partnerships with leagues like the MLB, NHL, or NBA, and maybe even championship games moving from traditional broadcast channels to Netflix. While some deals are already locked in with other networks, big money moves have a way of creating sudden change.
I believe Netflix will continue to position itself to compete head-to-head with other live sports platforms like Peacock, Fox Sports, and ESPN.
What This Means for the Future
Netflix is simplifying our consumption habits while enhancing the value of its subscription. For consumers, this means less hassle, more content, and a reimagined way to experience live events.
As we look ahead, it’s clear that Netflix’s venture into live sports is just the beginning and slightly expanding from films and series.
It’s an exciting shift that could redefine how we watch sports. What do you think? Do you see Netflix’s move into live sports as a game-changer, especially if you’re someone who engages with sports regularly?
Thanks for reading this week’s Peekko! 🔍
- Natalie Santini