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Netflix is stepping into the live sports arena and has been reaching out to broadcasters to produce the NFL games it will stream on Christmas Day, according to insiders. This move marks Netflix’s first significant venture into traditional live sports, expanding beyond its previous “sports entertainment” endeavors like its deal with WWE.
The streaming giant has secured rights to air two NFL games on Christmas Day 2024, with plans for at least one game in 2025 and 2026. However, unlike its WWE deal, Netflix’s agreement for NFL games doesn’t include a production team, prompting the company to seek assistance from current NFL broadcasters.
Netflix has approached broadcasters such as Disney’s ESPN, Comcast’s NBCUniversal, and Paramount Global’s CBS Sports. However, ESPN is unlikely to produce the games due to existing college football commitments on Christmas Day.
In-depth discussions with other broadcasters have not yet commenced, but there are challenges. Fox and CBS Sports, which already handle extensive game productions, may find additional games for Netflix burdensome. Moreover, existing NFL partners may be hesitant to assist Netflix, a potential future competitor for long-term media rights.
Amazon previously partnered with NBCUniversal for its “Thursday Night Football” broadcasts, setting a precedent for such collaborations. However, Netflix’s entry into live sports could shift the landscape further.
Netflix announced its NFL streaming plans in May, ahead of its Upfront presentation to attract advertisers for its ad-supported platform. The company reported having 40 million global active users on its ad-supported tier, which launched in November 2022.
Ted Sarandos, Netflix’s co-CEO, stated that the NFL aligns with Netflix’s event strategy, aiming to “own the day” with marquee events. Netflix is reportedly paying around $75 million per game to the NFL, positioning itself to reach a broader, younger audience and potentially setting the stage for future bids on larger game packages.
Current media partners might feel pressured by the NFL and potential financial incentives from Netflix to strike a deal. However, there are concerns about whether Netflix can meet the high production standards viewers expect from NFL broadcasts.
As the streaming industry evolves, live sports are becoming increasingly crucial for attracting audiences and boosting advertising revenue. This shift is evident as media giants like Amazon and Netflix make significant investments in sports content.
