Netlix, a dominant force in the streaming video landscape, is making a significant step into the realm of live sports content, and it’s first live-streamed sporting event could be coming this fall. While the company has gotten positive feedback for its compelling documentary-style sports series such as “Drive to Survive” and “Full Swing,” it has yet to secure the rights to broadcast live sporting events.
However, recent reports from the Wall Street Journal indicate that Netflix is currently engaged in discussions to livestream a celebrity golf tournament scheduled for the fall. The event, to be held in Las Vegas, is set to feature prominent golfers alongside Formula 1 drivers.
At this stage, the talks surrounding the tournament are still in their preliminary phase. Nevertheless, this development marks a strategic change for Netflix. As of the first quarter of 2023, Netflix’s subscriber base stands at an impressive 232.5 million, giving the company substantial influence over the streaming industry as a whole.
By venturing into live sports streaming, Netflix aims to further solidify its position and capture a new segment of the audience. With competitors such as Hulu and Apple TV+ making their way into live sports – Netflix does not want be caught behind on this trend.
The tournament serves as a testing ground for Netflix, allowing the company to assess the level of interest and engagement from its subscribers without incurring the heavy costs and long-term commitments typically associated with acquiring top-tier live sports rights. In the past, Netflix faced stiff competition and lost out on bidding for live rights to sporting properties like Formula 1 to more aggressive competitors.
Ted Sarandos, Netflix’s co-CEO, made a noteworthy statement at an investor conference last year, asserting that the company is not opposed to sports but rather prioritizes profitability. This indicates that while Netflix recognizes the appeal and demand for live sports content, it approaches such ventures with a strategic focus on generating returns on investment.
Moreover, the celebrity golf tournament presents Netflix with an additional opportunity to expand its advertising business, which is still in its early stages. By livestreaming the tournament, Netflix can attract sponsors and advertisers who are eager to reach the tournament’s audience, thereby diversifying its revenue streams and tapping into the growing potential of sports advertising.
