To reduce subscriber churn, streaming giants like Netflix (NFLX) and Amazon (AMZN) are turning to live events and sports. This strategy is crucial in their battle against traditional TV players like Disney (DIS) and Comcast (CMCSA). Indeed, David Levy, co-CEO of Horizon Sports and Experiences, told Yahoo Finance that live sports and events provide a compelling reason for subscribers to stick around.
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Levy, who is a veteran of the television industry, noted that sports content has a built-in advantage over scripted and unscripted programming. With sports, there’s a guaranteed audience and a high likelihood of success. This is why Netflix and Amazon are betting big on sports rights deals. In fact, Netflix recently began offering WWE programming, while Amazon secured the rights to Thursday Night Football.
Interestingly, the demand for sports streaming is expected to continue growing, with PwC estimating that over 90 million U.S. viewers will stream a sports event at least once a month by 2025. As a result, traditional TV networks are adapting by launching their own streaming services, such as NBC’s Peacock. Levy believes that simulcasting and cross-platform opportunities will become increasingly important for media companies looking to stay competitive in the TV landscape.
Which Stock Is the Better Buy?
Turning to Wall Street, analysts think that AMZN stock has more room to run than NFLX. In fact, AMZN’s price target of $268.91 per share implies almost 18% upside versus NFLX’s 4%.
