Netflix and Amazon Make Live Sports a Strategic Priority to Combat Churn
To retain subscribers amidst the competitive streaming landscape, Netflix and Amazon are investing heavily in live events and sports content. This strategy stems from the ease of canceling streaming subscriptions compared to cable services.
"It's easier to cancel streaming than it is a cable service," explains David Levy, co-CEO of Horizon Sports and Experiences. "You push a button on the platform and you're out."
Recognizing this challenge, Amazon and Netflix are focusing on attracting viewers with live sports. Amazon's introduction of Thursday Night Football and Netflix's acquisition of WWE programming demonstrate this strategy. Moreover, Netflix is rumored to be pursuing rights deals for F1 and UFC.
The NFL's potential opt-out from its TV rights deal in 2028 could further fuel competition among streaming platforms. "In order to continue to grow their sponsorship, they have to get into the sports business," Levy emphasizes.
Sports content holds a key advantage over scripted and unscripted streaming offerings. Levy explains, "You don't know whether [scripted programs] is a success or not. You know sports is going to be successful. They have built-in fan bases."
Industry experts project a significant increase in sports streaming viewership by 2025, further supporting the strategic move by streaming giants.
Despite the dominance of streaming, traditional television is not fading away. "A lot of people, including me, like to watch on Big TV screens," Levy states. Major networks like NBC are capitalizing on this trend with companion streaming services like Peacock.
"I think there's an opportunity even for the television business in the simulcasting business," Levy concludes. "You're going to see that those media companies are going to buy it for cross-platform opportunities."