Netflix (NASDAQ:NFLX) is considering live streaming a match featuring boxer and YouTube influencer Jake Paul and a potential bout between boxers from the Premier Boxing Champions show, as per a Wall Street Journal report. The news comes as the company is taking initiatives to improve its business through a crackdown on password sharing and focusing on better content, with competition in the streaming space heating up.
Netflix Chasing Live Sports Streaming
The streaming giant has been seeking growth in the live sports space after initially resisting due to the elevated costs of sports rights. The company will enter the live sports streaming market on November 14, with The Netflix Cup event, a live golf tournament featuring athletes from its Drive to Survive documentary about Formula One racing and professional golfers from its Full Swing docu-series.
Discussions about streaming a boxing match are still in the preliminary stage, with sources cautioning that a final deal might not be reached. The Premier Boxing Champions show, currently aired on Paramount’s (NASDAQ:PARA) Showtime, was created by Haymon Sports, an entity associated with American business and boxing manager AI Haymon. The show is reportedly looking for a new channel as Paramount recently announced that it will shut down Showtime’s sports division by the end of the year.
If Netflix cracks a deal to live stream a boxing match featuring Paul, it would give the company better insights into the profitability and business prospects in the sports streaming space. Moreover, it would help the company further promote its documentary about the boxer, Untold: Jake Paul the Problem Child, released in August this year. Rival services Apple’s (NASDAQ:AAPL) Apple TV+ and Amazon’s (NASDAQ:AMZN) Prime Video have already forayed into the live sports streaming space through major league soccer and National Football League’s Thursday night games, respectively.
Is NFLX Stock a Buy?
Wall Street is cautiously optimistic on Netflix due to macro pressures and rising competition in the streaming space. The Moderate Buy consensus rating on Netflix is based on 22 Buys, 10 Holds, and one Sell. The average price target of $462.55 implies 7% upside potential. Shares have risen about 47% year-to-date.
