Netflix (NASDAQ:NFLX) is reportedly interested in streaming live sports on its platform, as per a Wall Street Journal (WSJ) report that cited people familiar with the matter. Live sports and other content, like news, could help the company expand its subscriber base.
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The streaming giant recently bid for the ATP tennis tour’s streaming rights for some European countries, including France and the U.K., but pulled back later. Netflix also contemplated bidding for other sporting events, including the U.K. rights to the Women’s Tennis Association and cycling competitions.
The report added that Netflix executives have considered buying lower-profile leagues to avoid the expensive costs associated with the bidding of sports rights.
Streaming Giants Turn to Live Sports to Boost Business
Streaming giants are increasingly looking to gain access to sporting events to make their platforms attractive. For instance, Amazon’s (AMZN) Prime Video has exclusive rights to the National Football League’s (NFL) Thursday Night Football games.
Earlier this year, Apple’s (AAPL) Apple TV+ marked its foray into live sports when it won the exclusive rights to telecast two Friday Night Baseball games each week in the U.S. and eight countries. Similarly, in April 2022, Comcast’s (CMCSA) NBCUniversal reached a deal with Major League Baseball to stream a weekly game (scheduled on Sunday mornings) on its Peacock streaming service.
Is Netflix a Buy or Hold?
In a recent research report, Needham analyst Laura Martin listed a number of actions that Netflix should take to improve its competitive positioning.
These initiatives include the addition of an ad-driven streaming tier to maximize addressable market, the addition of sports and news content, bundling with other products to reduce churn, and the acquisition of an extensive film and TV content library. Martin has a Hold rating on NFLX stock.
Netflix scores a Moderate Buy consensus rating based on 13 Buys, 14 Holds, and four Sells. The average Netflix stock price prediction of $284.20 implies nearly 8% upside potential. Shares have declined over 56% year-to-date.
Conclusion
After losing subscribers for two consecutive quarters, Netflix added 2.41 million net subscribers in the third quarter. Live sports and other popular content could help Netflix retain existing subscribers and attract new ones to the platform.
