Netflix Inc. NFLX is actively seeking a production partner for the NFL games it plans to air on Christmas Day, with discussions reportedly underway with major broadcasters.
What Happened: Netflix is in the process of reaching out to broadcasters to find a partner for the NFL games it will broadcast on Christmas Day, as well as in 2025 and 2026, reported NBC News on Monday.
This marks Netflix’s first significant venture into traditional live sports, driven by its desire to expand its advertising tier. The company is looking for a production partner to help with the Christmas NFL games.
Netflix has been in touch with current NFL game broadcasters, including Walt Disney Co‘s DIS ESPN, Comcast Corp‘s CMCSA NBCUniversal, and Paramount Global‘s PARA CBS Sports, according to the report citing sources familiar with the matter.
However, Disney is unable to broadcast the games due to its college football commitments on the same day.
Netflix’s options may be limited as Fox Corp. FOX and CBS Sports already produce various games in different regions each week, potentially making it burdensome for them to take on additional games for Netflix.
There is also the issue of competition, as Amazon.com Inc. AMZN has already secured a deal with NBCUniversal to produce its NFL games. This could lead to resistance among current NFL partners to assist Netflix, as the streaming giant might be seen as a potential long-term media rights partner for NFL games.
"There aren't that many players in the space who are capable of doing this at a level that you would want to trust when you're launching as a new partner with a league as important as the NBA or the NFL," said Shirin Malkani, co-chair of the sports industry group at law firm Perkins Coie, adding that managing the production side can pose a significant challenge for streaming partners.
Netflix did not immediately respond to Benzinga's request for comment.
Why It Matters: Netflix’s move into live sports is a significant shift from its traditional on-demand streaming model. The company has been diversifying its content offerings to attract more advertisers and subscribers. For instance, Netflix recently announced a new hot dog-eating competition, “Chestnut vs. Kobayashi: Unfinished Beef”, featuring competitive eating legends Joey Chestnut and Takeru Kobayashi.
Additionally, Netflix is set to stream the rescheduled boxing match between Jake Paul and Mike Tyson on Nov. 15. These ventures into live events are part of Netflix’s broader strategy to increase its subscriber base and advertising revenue.
Analysts have noted that Netflix could monetize up to 40 million borrowers by the end of 2024, potentially adding significant revenue. This comes as the company continues to restrict account sharing and encourage users to create their own accounts.
Price Action: Netflix’s shares closed 0.49% up at $653.26 on Thursday, however, it fell 0.94% in premarket trading on Friday, according to data from Benzinga Pro.
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