Netflix has announced its first major push into live sports broadcasting as it will air two National Football League (NFL) games on Wednesday, the Kansas City Chiefs at the Pittsburgh Steelers and the Baltimore Ravens at the Houston Texans. The games are expected to generate significant revenue for the streaming giant’s advertising-supported subscription tier.
The move is part of a broader strategy by Netflix to increase its ad revenue and scale up its monetization efforts. Analysts predict that the NFL broadcast will drive $150 million in revenue for the company, with performances from pop stars Mariah Carey and Beyoncé accompanying the games.
Netflix has had a strong year on the stock market, posting a 91% year-to-date gain through Tuesday, making it the 13th-best performing stock on the S&P 500 index. The streaming giant’s projected revenue and net profit for 2024 are expected to jump by 15% and 60%, respectively.
The company has paid $150 million to secure the broadcasting rights to the two NFL games, marking its first major push into live sports. This move follows high ratings on Netflix’s trio of nationally televised Christmas games last year, which ranked in the top 20 broadcasts in the US.
Netflix’s foray into live sports comes as the company continues to expand its offerings and push into new markets. The streaming giant has secured deals for several major sporting events, including a $5 billion contract with the WWE to air its weekly wrestling program “Raw”.
Source: https://www.forbes.com/sites/dereksaul/2024/12/25/netflix-set-for-150-million-nfl-christmas-test-as-stock-heads-to-best-year-since-2015