Netflix's NFL Debut Brings Record Streams But Lags Traditional TV: Report

Streaming giant Netflix Inc’s NFLX ratings for its NFL debut on Christmas Day lagged expectations compared to traditional broadcast and cable TV offerings, CNN reports. The stock is trading lower on Friday.

Netflix made history by streaming two live NFL games on Christmas Day.

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The exclusive matchups, part of a three-year agreement valued at $150 million annually, included the Kansas City Chiefs facing the Pittsburgh Steelers and the Baltimore Ravens taking on the Houston Texans.

Beyoncé delivered a 12-minute halftime show in her hometown during the Ravens-Texans game in Houston. Dubbed the “Beyoncé Bowl” by Netflix, the performance included the first live renditions of tracks from her “Cowboy Carter” album. Beyoncé inked a $60 million deal with Netflix in 2019. Beyoncé’s set also featured guest appearances from Shaboozey, Post Malone, and her daughter, Blue Ivy Carter.

The Ravens-Texans game, airing late in the day, attracted 24.3 million viewers, while the earlier Chiefs-Steelers matchup garnered 24.1 million, CNN cites Nielsen data. Although these games became the most-streamed in NFL history, traditional TV Christmas broadcasts in 2023 outperformed them. The Raiders-Chiefs game on CBS drew 29.2 million viewers, the Eagles-Giants clash on Fox reached 29 million, and ESPN’s airing of the 49ers-Ravens matchup pulled in 27.1 million viewers, CNN cites Nielsen.

“Beyoncé Bowl” peaked viewership to over 27 million during the Ravens-Texans game, CNN cites Nielsen.

The NBA saw significant success this Christmas, with its five-game lineup achieving an 84% viewership increase compared to last year. Meanwhile, Nielsen and Netflix reported that 65 million people watched at least one minute of Netflix’s NFL broadcast, the Hollywood Reporter reports.

Netflix plans to release its global viewership data on the games next week, allowing for a more precise comparison to its last major sporting event, November’s Jake Paul-Mike Tyson boxing match.

The previous record for a streaming-only NFL game was set by Comcast Corp CMCSA Peacock’s January wild card playoff, which drew 23 million viewers. Amazon.Com Inc AMZN Prime Video averages 13.34 million viewers for its Thursday Night Football broadcasts, a 12% increase from last year. In comparison, Peacock attracted 14 million viewers during the season’s opening week.

Netflix stock surged over 97% year-to-date.

Oppenheimer’s Jason Helfstein flagged Netflix as the sole investable mainstream media stock backed by ad revenue potential from NFL Christmas Day games and live events as it successfully kills its competitors.

Jim Cramer of CNBC voiced firm buying conviction for the company.

Investors can gain exposure to Netflix through The Communication Services Select Sector SPDR Fund XLC and Vanguard Growth ETF VUG.

Price Actions: NFLX stock is down 0.67% at $917.95 premarket at last check Friday.

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