Netflix and Amazon Dominate Live Sports to Combat Subscription Cancellations
In the ongoing battle against traditional TV providers, streaming giants Netflix (NFLX) and Amazon (AMZN) are leveraging live events and sports to prevent subscriber churn.
David Levy, co-CEO of Horizon Sports and Experiences, highlights the ease of canceling streaming subscriptions compared to cable services. To mitigate this, platforms are offering exclusive sports content.
Amazon's introduction of Thursday Night Football on Prime Video locks in viewers for 18 weeks, while Netflix's WWE programming and fight events have attracted millions of viewers. Rumors suggest Netflix is eyeing rights deals for F1 and UFC.
Levy emphasizes the importance of sports content for subscriber retention: "If you want to watch Thursday Night Football, you're not canceling your subscription." Sports offer a built-in fanbase and guaranteed success, unlike scripted programs.
PWC estimates that by 2025, over 90 million US viewers will stream sports events monthly, a significant increase from 2021.
Despite the rise of streaming, Levy notes that large-screen TVs remain popular, and traditional networks like NBC are investing in simulcasting via streaming services. This cross-platform approach provides media companies with new revenue streams.
Yahoo Finance's Opening Bid podcast offers insights on these trends, featuring interviews with industry leaders.