Headline: Netflix and Amazon Dominate Live Sports to Combat Churn
Body:
In the competitive streaming landscape, Netflix (NFLX) and Amazon (AMZN) are leveraging live events and sports to retain subscribers. David Levy, co-CEO of Horizon Sports and Experiences, highlights the challenges traditional TV players face in preventing cancelations.
"Canceling streaming is easier than cable," notes Levy. To combat this, streaming giants are introducing compelling content, such as Amazon's Thursday Night Football and Netflix's WWE programming.
With scripted content, success can be uncertain. In contrast, sports events have built-in fan bases, ensuring consistent viewership. PWC estimates that by 2025, over 90 million US viewers will stream sports monthly, up from 57 million in 2021.
Netflix aims to extend its dominance in live sports, rumored to be pursuing rights deals for F1 and UFC. The NFL's potential opt-out from TV contracts in 2028 could further fuel competition among streaming platforms.
Levy emphasizes the importance of sports content for streaming growth: "They have to get into the sports business to continue sponsorship growth." Analysts, such as Jeff Wlodarczak of Pivotal Research, believe Netflix has secured its position as a global streaming leader.
Despite the rise of streaming, large TV screens remain popular: "Many people like watching on big screens," says Levy. Traditional networks like NBC have embraced simulcasting to capitalize on cross-platform opportunities.
Yahoo Finance's Opening Bid podcast provides expert insights on business and markets, featuring interviews with industry leaders.