Netflix (NASDAQ:NFLX) could be nearing a deal to stream two National Football League (NFL) games on Christmas Day, according to Bloomberg News. This would be the streaming giant’s first foray into live football with the licensing rights for the games. The report stated that Netflix is expected to pay less than $150 million for each game.
Why Is Netflix Increasing its Push into Live Sports?
Netflix is intensifying its efforts to stream live sports, viewing it as a potentially lucrative business opportunity. The company’s advertising tier could particularly benefit from live sports streaming, as such events are likely to attract more advertisers, thereby boosting advertising revenues.
During Netflix’s Q1 earnings call, co-CEO Ted Sarandos emphasized the company’s focus on achieving profitable growth rather than prioritizing sports programming. Sarandos indicated that while Netflix is open to expanding into live sports, it will do so only if it aligns with its goals of increasing user engagement, revenue, and profit.
Netflix’s strategic focus on live sports is evidenced by its recent agreements, including a $5 billion long-term streaming deal with WWE Raw and the upcoming broadcast of a boxing match featuring Mike Tyson vs. Jake Paul.
What Is Netflix Stock’s Price Prediction?
Analysts remain cautiously optimistic about NFLX stock, with a Moderate Buy consensus rating based on 23 Buys, 12 Holds, and one Sell. Year-to-date, NFLX has increased by more than 25%, and the average NFLX price target of $654.64 implies an upside potential of 6.3% from current levels.
