Netflix’s (NASDAQ:NFLX) expansion into sports streaming has given it a whole new market edge. Unfortunately, it’s also put a whole new demand on the streaming video giant, and one that it’s not wholly familiar with. As Netflix navigates this unfamiliar ground, it’s looking for a bit of help from those who have gone before. Interestingly, shares are up over 3% in Friday afternoon’s trading.
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Netflix has been turning to conventional broadcasters for help producing the NFL games that it will be streaming starting this Christmas, reports note. It’s already turned to several such broadcasters, including Paramount’s (NASDAQ:PARA) CBS and Disney’s (NYSE:DIS) ESPN, to find someone willing to partner with them in actually producing the games in question.
Netflix still plans to show two games this year, at least one more in 2025, and another in 2026. But being as Netflix has never actually shown live sports, it’s not quite sure how to go about setting up said games. Previous sports deals—like the WWE events—came with production teams. Now Netflix has to learn the ropes as it goes or bring in help, with the latter seeming like the better option.
Ad Market Troubles
One of the biggest things Netflix has done in recent memory was its ad-supported tier launch. But it’s running into some issues on that front, too, thanks to Amazon (NASDAQ:AMZN) and its own streaming aspirations. Netflix has been left scrambling, charging less for ads and offering up new options like product placement as Amazon rolled over its entire Prime Video subscriber base to ad-supported television. That move destabilized the market and left Netflix—even with its own substantial subscriber base—attempting to compete with a major new player it hadn’t seen coming.
Is Netflix a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 23 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 51.11% rally in its share price over the past year, the average NFLX price target of $657.98 per share implies 1.87% downside risk.
