Live Sports and Events: A Key to Subscriber Retention for Streaming Giants
In the competitive streaming landscape, finding ways to prevent cancellations is crucial. Streaming giants like Netflix (NFLX) and Amazon (AMZN) have recognized the power of live events and sports in retaining subscribers.
According to David Levy, co-CEO of Horizon Sports and Experiences, canceling streaming subscriptions is easier than cable TV services. Therefore, providing compelling content that keeps customers engaged is essential.
Levy highlights the success of Amazon's Thursday Night Football, which has a dedicated schedule, ensuring that subscribers who want to watch the games are less likely to cancel their subscriptions. Similarly, Netflix has ventured into WWE programming and is rumored to be pursuing rights deals for F1 and UFC.
The potential for further dominance in live sports is significant. The NFL is expected to review its TV rights deals in 2028, which could lead to streaming platforms bidding for the rights. Levy argues that sports content has the advantage of built-in fan bases, ensuring a level of success.
Data from PWC suggests that by 2025, over 90 million US viewers are expected to stream sports events monthly, a significant increase from 2021.
While streaming giants have gained significant traction, traditional media companies are also investing in streaming services. NBC's Peacock, for instance, complements its broadcast network offerings. Levy believes that media companies will continue to acquire rights for cross-platform opportunities.
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