How Netflix is Revolutionizing Sports Entertainment Without Live Rights
Netflix, the streaming giant with 230 million subscribers worldwide, is reshaping sports entertainment by investing heavily in original sports documentaries. Explore its unique strategy and its impact on the industry.
Netflix has dominated the sports industry by investing in original sports documentaries instead of exclusive live rights to sporting events. Image Source: Netflix
Netflix’s Entertainment Empire
Netflix, the largest streaming service in the world with 230 million subscribers in 189 countries, generated more than $30 billion in revenue in 2022, and customers spend an average of 3.2 hours each day consuming content on the platform.
The company’s premium on original content has been successful, with the spending of $7 billion on its own originals in 2023, and it has not seen a profit path from renting big-league sports, according to co-CEO Ted Sarandos.
While live sports are what holds cable TV together, Netflix’s approach is to invest in original sports documentaries, which currently number 55 in the United States.
Original Content Over Live Rights
Original multi-season docuseries like Formula 1: Drive to Survive (5 seasons) and Last Chance U (5 seasons), along with individual documentaries like The Last Dance and Icarus, have gained a massive following among sports enthusiasts. These documentaries offer an in-depth look at the inner workings of sports, including the teams, athletes, coaches, and behind-the-scenes events.
Netflix’s sports documentaries have had a significant impact on sports enthusiasts, making the company a major sports player without investing a single dollar in live rights. Formula 1: Drive to Survive, in particular, has played a critical role in the company’s sports domination.
The series has attracted a massive following globally and has raised the profile of Formula 1 racing in the United States. The show has also introduced viewers to the personalities and rivalries within the sport, creating a new level of appreciation for Formula 1.
The Last Dance, a documentary about Michael Jordan’s career with the Chicago Bulls, was another hit for Netflix. The documentary, which aired in 2020, received positive reviews and won an Emmy Award for Outstanding Documentary or Nonfiction Series. The documentary rekindled interest in Michael Jordan, a basketball legend, and created a new level of appreciation for the sport.
The Threat to Traditional Cable TV
Netflix’s domination of the sports industry has been so profound that they have become a threat to traditional cable TV providers. While cable TV providers continue to pay higher and higher fees for sports rights, streaming services have increasingly tried to steal these rights as their balance sheets grow, and the opportunity to steal market share increases.
Amazon Prime recently agreed to pay the NFL $10 billion over the next decade for exclusive rights to Thursday Night Football. ESPN+ now offers more than 22,000 live events each year, including an exclusive NFL International Series game and pay-per-view access to the UFC.
Netflix’s strategy of investing in original sports documentaries has been incredibly successful. It has enabled the company to become a major sports player, all without investing a single dollar in live rights.
While live sports continue to be the last thing holding cable TV bundles together, Netflix’s approach has provided sports enthusiasts with an in-depth look at the inner workings of sports, and a new level of appreciation for the industry.
With the increasing number of cord-cutters, Netflix’s domination of the sports industry is set to continue, and traditional cable TV providers may be forced to change their approach to survive in the highly competitive sports industry.
Continue to follow Newyorkgambling.org as we cover this story.