Why will Netflix and Amazon dominate live sports?
Nowadays, viewers no longer have to choose between traditional TV and streaming services - the two platforms overlap, especially in the area of sports broadcasting. Netflix and Amazon are among the giants trying to outdo traditional broadcasters such as Disney and Comcast by investing in live sports. How is this trend affecting viewers and what does it mean for the future of TV entertainment?
Streaming platforms are easier to cancel than traditional cable services. This factor is forcing streaming content providers to look for ways to retain subscribers. The answer appears to be live sports, which has a loyal viewer base and compels subscribers to stay on the platform long-term.
$AMZN recognized this trend and introduced broadcasts of Thursday Night Football, which ran for 18 straight weeks. If viewers wanted to watch these games, they had no reason to cancel their subscription. A similar strategy is now being followed by Netflix $NFLX, which recently began offering WWE content and hosted a boxing match between Mike Tyson and Jake Paul that was watched by 64 million viewers.
Netflix is also speculated to have acquired the broadcast rights to F1 and UFC. The NFL could renegotiate its contracts with TV companies in 2028, which could mean an opportunity for streaming platforms willing to invest billions of dollars in sports rights.
Sports content has one huge advantage over TV shows and movies - it has a steady and loyal audience. For purely feature titles, there is no guarantee that they will be popular, but sport has a built-in fan base. PWC estimates that by 2025, 90 million users in the US are expected to watch a sports stream at least once a month, a significant increase from 57 million in 2021.
Analysts agree that Netflix currently leads the global streaming networks and will only strengthen that position with the expansion of its live sports offerings. Amazon is not lagging behind and is investing in the rights to more sporting events.
Netflix and Amazon have realized the huge potential of live sports and are investing billions of dollars in streaming rights. This trend will change the way viewers watch sports, forcing traditional TV stations to rethink their strategies.
Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct thorough self-analysis.
Source: Yahoo Finance
