Netflix’s Approach to Live Sports: A Shift from Tradition
Introduction
In an effort to expand its offerings and attract a wider audience, Netflix has been exploring the world of live sports. In a recent earnings call, Netflix co-CEO Ted Sarandos provided insight into the company’s strategy for live sports, diverging from the traditional approach of buying rights to entire seasons of sports leagues.
A New Approach
Unlike traditional sports broadcasting, Netflix has decided to focus on broadcasting a select few high-profile games, rather than entire seasons. This "event model" allows Netflix to draw in viewers and create excitement around specific events, rather than overwhelming them with a constant stream of content.
First Steps
This year, Netflix will air two NFL games on Christmas Day, marking its first move into regular-season sports. This event will be followed by other live sports events, including a celebrity golf tournament and a boxing match featuring former heavyweight champion Mike Tyson.
Targeted Approach
Netflix’s approach to live sports is unique in that it avoids the traditional bidding wars for broadcast rights. By focusing on a limited number of high-profile events, Netflix is able to avoid the high costs associated with long-term contracts and instead opt for a more targeted approach.
Why this Approach?
Sarandos explained that the traditional approach to live sports can be costly and may not lead to profits. By focusing on a limited number of events, Netflix is able to minimize its financial risk and create excitement around specific events.
Future Plans
Netflix has announced plans to expand its live sports offerings, with a focus on events that are exclusive to its platform. This approach is expected to generate excitement and engagement among viewers, as well as drive revenue through advertising.
Ad-Supported Tier
Netflix’s live sports offerings are closely tied to its new ad-supported tier. Live events, particularly those that are exclusive to Netflix, can make the ad-supported tier feel like a more attractive option for viewers.
Benefits
The benefits of Netflix’s approach to live sports are numerous. By focusing on a limited number of high-profile events, Netflix is able to create excitement and engagement among viewers, as well as drive revenue through advertising. This approach also allows Netflix to avoid the high costs associated with traditional sports broadcasting.
FAQs
Q: Why is Netflix avoiding traditional sports broadcasting?
A: Netflix is avoiding traditional sports broadcasting in order to minimize its financial risk and create excitement around specific events.
Q: What is Netflix’s approach to live sports?
A: Netflix’s approach to live sports is focused on broadcasting a select few high-profile games, rather than entire seasons. This "event model" allows Netflix to create excitement and engagement among viewers.
Q: What events will Netflix air?
A: Netflix will air a limited number of high-profile events, including NFL games, a celebrity golf tournament, and a boxing match featuring former heavyweight champion Mike Tyson.
Q: How will Netflix make money from live sports?
A: Netflix will generate revenue from live sports through advertising. Live events, particularly those that are exclusive to Netflix, can make the ad-supported tier feel like a more attractive option for viewers.
Conclusion
Netflix’s approach to live sports is a departure from traditional sports broadcasting and reflects the company’s focus on creating excitement and engagement among viewers. By focusing on a limited number of high-profile events, Netflix is able to minimize its financial risk and drive revenue through advertising. As the company continues to expand its live sports offerings, it will be interesting to see how this approach evolves and what the future holds for Netflix in the world of live sports.
Author: fortune.com
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