In July, Netflix (NASDAQ:NFLX) will air a boxing match featuring Mike Tyson vs. Jake Paul. This marks Tyson’s return to professional boxing after 19 years, while Jake Paul is 30 years Tyson’s junior. Netflix aims to leverage this event, along with other live shows, as significant cultural and advertising opportunities.
Netflix’s new venture into streaming live sports could present a lucrative business opportunity for the streaming giant. The company could tap into advertising as a new revenue stream. Moreover, NFLX indicated in its Q1 shareholder letter its intention to make advertising a “more meaningful contributor” to the business.
Is Netflix Expanding its Presence in Live Sports Streaming?
Previously, the company had stated that its $5 billion long-term streaming deal with WWE Raw focused more on “sports entertainment” than on venturing into streaming rights for major sports leagues. However, during NFLX’s Q1 earnings call, the company’s co-CEO Ted Sarandos indicated that the company is prioritizing profitable growth over sports programming. Sarandos added that the company is open to expanding into live sports if it aligns with its goals of increasing user engagement, revenue, and profit, similar to the WWE deal.
According to a Puck report, there is also the possibility that NFLX could acquire the exclusive streaming rights to two NFL games on Christmas next season.
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 20%, and the average NFLX price target of $654.64 implies an upside potential of 7.2% from current levels.
