Netflix and Amazon Dominate Live Sports to Prevent Subscriber Churn
To combat the ease of canceling streaming subscriptions, Netflix (NFLX) and Amazon (AMZN) prioritize live events and sports in their rivalry against traditional TV providers like Disney (DIS) and Comcast (CMCSA).
David Levy, co-CEO of Horizon Sports and Experiences, emphasizes the power of sports content in reducing churn. Streaming services introduce exclusive events like Thursday Night Football (Amazon) and WWE programming (Netflix) to ensure viewer engagement throughout the schedule.
Netflix's rumored pursuit of F1 and UFC rights further demonstrates the industry's shift towards live sports. The NFL's potential termination of its TV rights deal in 2028 could attract lucrative offers from streaming platforms.
According to Levy, streaming platforms recognize the benefits of sports in attracting and retaining subscribers. Unlike scripted programming, sports events have built-in fan bases, guaranteeing success.
PWC estimates that over 90 million US viewers will stream sports at least monthly by 2025, a significant increase from 2021. This shift reinforces the strategic advantage of live sports for streaming services.
Analysts predict Netflix's continued dominance in the global streaming race, citing its impressive results and positioning relative to competitors.
Despite the rise of streaming, big-screen TV remains popular. Streaming services like Peacock have created simulcasting opportunities for traditional networks.
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