Netflix ramping up its live sports offerings could make a price increase necessary soon
One of the most profound changes Netflix has seen in recent months is its investment into major live sporting events -- including the bout between boxers Mike Tyson and Jake Paul, as well as the NFL games that Netflix broadcast on Christmas Day.
In fact, let’s zero in on those NFL games for a moment. The streaming giant generated about 24 million average viewers in the US for those two games — less than the Christmas telecasts last year from ABC, Fox, and CBS, but enough to represent a major opportunity nonetheless. “While viewership fell short of broadcast, we believe Netflix is positioned to take on additional sports rights over time,” wrote UBS analysts led by John Hodulik in a note this week. “This should pave the way for additional price increases over time while enhancing the advertising offering.”
As a reminder, Netflix hasn't raised prices in the US since early 2022, and live sports are clearly a huge driver of new business for the company.
According to an estimate from streaming data research company Antenna, for example, the Tyson-Paul fight brought in 1.43 million Netflix sign-ups within three days of the event. Live sports fans, of course, stay glued to their screens as some of the most engaged consumers of televised entertainment. Along those lines, the UBS analysts continued: "At the recent UBS Media and Communications conference, Co-CEO Ted Sarandos tied future price increases to increased engagement and improved overall value to members, including through marquee live events."
Among the many reasons why live sports could give Netflix a big lift is the fact that sports events drive high engagement and participation because of their real-time nature. Compared to on-demand content, live sports get people to tune in, share, and discuss what’s happening right then, in the moment.
Also, sports rights are highly coveted, especially for popular leagues and events (in addition to appealing to fans around the world). By locking down exclusive broadcast deals for those, Netflix can strengthen its content library and make the platform even more compelling to current and new subscribers. The result? Cha-ching. All of us might be paying more soon.
The post Netflix ramping up its live sports offerings could make a price increase necessary soon appeared first on BGR.
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Netflix ramping up its live sports offerings could make a price increase necessary soon originally appeared on BGR.com on Tue, 31 Dec 2024 at 19:02:00 EDT. Please see our terms for use of feeds.