Live Sports and Events: Key to Boosting Streaming Subscription Retention
As the battle between streaming giants Netflix (NFLX) and Amazon (AMZN) intensifies against traditional TV providers like Disney (DIS) and Comcast (CMCSA), the focus has shifted towards enhancing customer retention.
David Levy, co-CEO of Horizon Sports and Experiences, emphasizes the crucial role of live events and sports in preventing subscription cancellations: "It's easier to cancel streaming than cable service. You push a button and you're out."
Both Netflix and Amazon have recognized this trend and are actively acquiring rights to major sporting events. Amazon has already introduced Thursday Night Football, while Netflix recently added WWE programming and is rumored to be eyeing F1 and UFC deals.
The NFL's potential opt-out from existing TV contracts in 2028 could also attract interest from streaming platforms, who are eager to expand their sponsorship revenues and subscriber base.
The advantage of sports content over scripted or unscripted programming lies in its guaranteed success. "With sports, you know it's going to be successful. They have built-in fan bases," notes Levy.
Furthermore, PwC estimates that by 2025, over 90 million US viewers will stream sports events monthly, a significant increase from 2021.
Analysts like Jeff Wlodarczak from Pivotal Research believe that Netflix has emerged as the winner in the global streaming race, citing its 2024 results and raised guidance for 2025.
However, it's important to note that traditional TV screens remain popular for sports viewing. Levy suggests that major networks like NBC, through its streaming service Peacock, see opportunities in simulcasting events for cross-platform reach.
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