Although it has long been rumored that Netflix could look to explore live sports rights, the company’s co-chief executive officer feels that its strategy has not changed. The company is on the verge of hosting The Netflix Cup at the Wynn Golf Club in Las Vegas, Nev., marking the first live sporting event being broadcast by the over-the-top (OTT) streaming service. It will feature four Formula 1 drivers – Alex Albon, Pierre Gasly, Lando Norris and Carlos Sainz – and four PGA Tour players – Rickie Fowler, Max Homa, Collin Morikawa and Justin Thomas – all competing in a golf tournament mere days before the first ever Las Vegas F1 Grand Prix.
“We are in the sports business, but we’re in the part of the sports business that we bring the most value to, which is the drama of sport,” Ted Sarandos said on Wednesday. “We’re having a big impact on sports through the thing we’re most great at, which is the drama.”
Netflix has released various sports documentaries and series over the last several years that have drawn wide swaths of viewership, including Formula 1: Drive to Survive; Full Swing; Break Point; Beckham; and Quarterback among others. As the company embarks on a new project, it hopes to be able to continue to popularize Formula 1: Drive to Survive and Full Swing, both of which are on the precipice of new seasons, along with its broad sports portfolio.
“We love to see how our sports series have brought increased fandom to sports leagues and competitions all over the world,” Gabe Spitzer, Netflix vice president of nonfiction sports, said in a statement. “The Netflix Cup will take that energy to the next level with global stars from two popular hits competing in our first-ever live sports event.”
With media rights for the National Basketball Association two seasons away from expiring, reports have suggested that the league could look to adopt a hybrid structure between linear television and digital platforms. Apple and Amazon are reportedly interested in negotiating with the league once they are able.
Moreover, current rightsholders in The Walt Disney Company (ABC/ESPN/ESPN+) and Warner Bros. Discovery (TNT/TBS/Max) could look to diminish the number of games they carry. While it has long been rumored that Netflix could explore a bid for media rights, Sarandos knows that the company will continue the course of action it has planned to assimilate into the business.
“I think about it as a great way of extending those great drama of sport brands that we’ve created,” Sarandos said, “but [there is] no core change in our live sports strategy or licensing live sports.”
There are similarities between the forthcoming presentation of The Netflix Cup and the Warner Bros. Discovery event, The Match, accentuated through the professional athletes and celebrities that participate across these competitions. Netflix will not be required to pay an extravagant rights fee for the event and could be a harbinger of things to come for the company should it prove successful.
“We are investing heavily in live capabilities,” Sarandos said, “so as demand grows for that and we find different ways that the live-ness can be part of the creative storytelling, we want to be able to do that at a big scale.”
The event is sanctioned by both Formula 1 and the PGA Tour and will be produced by Excel Sports Management, BZ Entertainment and Full Day Productions. Netflix will begin its live stream of all the action on Tuesday, Nov. 14 at 6 p.m. EST/3 p.m. PST.
