Why Live Sports Are Key to Netflix and Amazon's Streaming Dominance
Streaming giants Netflix (NFLX) and Amazon (AMZN) are doubling down on live events and sports to combat churn and strengthen their market position against traditional TV players.
According to David Levy, co-CEO of Horizon Sports and Experiences, "It's easier to cancel streaming than cable." By offering compelling live content, these platforms can reduce subscriber cancellations.
Netflix's recent acquisition of WWE programming and its rumored pursuit of F1 and UFC rights are evidence of this strategy. Amazon's acquisition of Thursday Night Football has also attracted significant viewership.
The NFL's upcoming TV rights negotiations in 2028 could further fuel competition from streaming services seeking to expand their sports portfolio. Levy notes that sports content provides a distinct advantage over scripted and unscripted shows due to its built-in fan base and guaranteed success.
PWC estimates that by 2025, over 90 million US viewers will stream sports events monthly, underscoring the growing popularity of live sports streaming.
Analysts believe that Netflix's success in live sports will be a key factor in its continued dominance in the streaming industry. However, traditional TV networks are also adapting, with NBC offering a simulcasting service through its platform Peacock.
Live sports content is expected to be a major driver of subscriber growth and revenue for Netflix and Amazon, as they continue to battle for market supremacy in the streaming era.