Netflix and Amazon Double Down on Live Sports to Combat Churn
Streaming giants Netflix (NFLX) and Amazon (AMZN) are bolstering their live event and sports offerings in a bid to reduce subscriber churn.
Live Content: The Customer Retention Key
According to David Levy, co-CEO of Horizon Sports and Experiences, live events and sports are essential for subscriber retention. "It's easier to cancel streaming than cable," he explains. "If you're subscribed for Thursday Night Football, you're less likely to cancel."
Netflix's Sports Expansion
Netflix has expanded its sports offerings with WWE programming and the Mike Tyson vs. Jake Paul fight. Rumors suggest potential rights deals for F1 and UFC.
Amazon's Thursday Night Football
Amazon Prime Video secured exclusive rights to stream Thursday Night Football, providing subscribers with a compelling reason to maintain their subscriptions.
Why Sports Content Succeeds
Live sports events have an inherent advantage over scripted content: a built-in fan base. "With scripted programs, you don't know if it's a success or not," says Levy. "Sports is guaranteed success."
Streaming Sports Viewership Surge
By 2025, over 90 million US viewers are projected to stream sports events monthly, a significant increase from 57 million in 2021.
Growth Imperative
Levy notes that Netflix and Amazon are aggressively expanding their sports offerings to sustain growth and meet Wall Street demands.
Big Screens Remain Relevant
Despite the popularity of streaming, large-screen TVs continue to be favored by many viewers.
Cross-Platform Opportunities
Networks like NBC are also capitalizing on the live sports trend with streaming services like Peacock. Levy believes these companies will seek cross-platform opportunities to maximize their reach.