A peak of 65 million spectators but numerous technical bugs. Netflix’s debut in live streaming of sporting events – the boxing fight between former world champion Mike Tyson and influencer Jake Paul – has had a mixed record. However, they remain very encouraging, demonstrating the interest of its subscribers. And also the immense reach of its audience, capable of transforming unofficial opposition into global attraction. The streaming platform hopes to repeat this feat at Christmas, with the broadcast of two NFL matches, the American football championship. And a Beyoncé concert at halftime. For Netflix, addicted to data analysis, it will also be an additional opportunity to validate its new strategy in sport, before positioning itself on new rights.
Documentaries – For a long time, Netflix refused to participate in the bidding war for sports rights. “We are not against sport, we are simply in favor of profits”, explained Ted Sarandos, its co-general director, at the end of 2022. Instead, the group focused on producing behind-the-scenes documentaries at competitions, following the success of Drive To Survive on the F1 championship. Its rivals have adopted the opposite strategy. Since 2017, Amazon has acquired numerous rights. Apple and Paramount have followed the same path. For these platforms, sport had to represent a selling point to establish themselves in a very competitive market. Netflix has successfully prioritized two other growth drivers: the fight against account sharing and an offer with advertisements.
Make rights profitable – Netflix now seems ready to change strategy. Until now, the platform had simply broadcast a charity golf tournament and a tennis exhibition match, which did not attract crowds. In January, she announced a partnership with WWE to broadcast wrestling matches for ten years, on the border between sport and entertainment. In the spring, she formalized a deal with the NFL for four to six games in three years. This does not necessarily mean that the company will buy other competitions. First, because it favors global rights, when the holders prefer to negotiate by country. Then, because its leaders repeat that they will only invest more in sport when they have found a way to make the purchase of rights profitable.
Advertising revenue – With this in mind, the NFL broadcast will serve as a major test. If the purchase price remains relatively modest – $75 million per match, less than the budget of certain films financed by Netflix – the impact in terms of subscribers should be limited. The company is relying more on advertising: spots will be broadcast even for customers of the most expensive offers. The broadcasts should attract a large audience. Last year, the three Christmas matches, broadcast on television, attracted between 27 and 29 million viewers in the United States. According to estimates ofAd Agea 30-second spot can sell for up to $900,000. With approximately 100 ads per match, that represents up to $90 million in revenue. Netflix has already sold all of its inventory.
To go further:
– Netflix, big winner of the “streaming war”
– Why Netflix could launch a free offer
