Netflix has more than 325 million subscribers worldwide. The streaming giant has also made no secret of its ambition to become a player in the live events space, especially when it comes to sports. In recent years, the company has invested heavily, securing deals with MLB, the NFL and FIFA. It has also become the home of MVP boxing promotions and WWE’s flagship program, Monday Night Raw.
However, the strategy behind Netflix’s entry into live sports is still evolving. During an appearance this past April, Chief Content Officer Bela Bajaria explained that the goal is to make everything on the platform great, including live events. She also acknowledged the challenge of shifting viewers from an on-demand mindset to appointment viewing. That may prove to be the company’s biggest obstacle and could ultimately determine whether sports remain a long-term priority.
Habits are hard to change.
For much of my childhood, television revolved around appointment viewing, just as sports do today. I remember gathering with my family to watch ABC’s T.G.I.F. lineup or tuning in for Tom Brokaw and NBC Nightly News.
Today, we live in a much different media environment. Audiences have traded appointment viewing for the convenience of watching on their own schedule. Millions continue to cut the cord because they can find their favorite programming whenever they want. That’s the experience platforms like Netflix were built to deliver: premium programming available whenever and however the viewer chooses.
What Matters Most
Sports remain television’s last true appointment-viewing experience. That’s why networks continue to pay enormous rights fees for live sports. They aren’t just buying games. They’re buying one of the few forms of programming that still compels audiences to show up at a specific time.
Peter Kafka, chief correspondent at Business Insider, recently remarked that CBS and FOX primarily exist today to broadcast football.
He’s not wrong.
During the 2023 season, 93 of the 100 most-watched broadcast telecasts were NFL games. That number dipped to 72 in 2024 because of the presidential election, but the NFL still dominated the rankings. Last season, the league climbed back to approximately 83 of the 100 most-watched telecasts.
That reality helps explain why broadcasters continue investing billions in sports rights. But for Netflix, which has chosen a more selective approach, is the investment accomplishing what the company hopes?
Juice Worth The Squeeze
Take, for example, the agreement it signed with MLB last winter. Netflix reportedly paid $60 million for Opening Day, Monday night’s Home Run Derby and the upcoming Field of Dreams game. That’s roughly 25% of what NBC pays annually for MLB rights while receiving only a fraction of the inventory.
Of course, that’s by design. Netflix isn’t trying to become a full-time sports network. For now. But if sports are meant to drive subscriber growth or increase engagement, the early returns raise legitimate questions.
Viewership wasn’t overwhelming for Netflix’s MLB debut. Approximately 3 million viewers watched the New York Yankees face the San Francisco Giants on Opening Day. Considering Netflix has more than 325 million subscribers, that represents less than 1% of its global audience. If each of those three events carries an approximate value of $20 million, is that level of engagement enough to justify the investment?
That’s the challenge Netflix is trying to solve.
Sports become outdated faster than any sitcom, feature film or documentary Netflix produces. If the objective is to change consumer behavior, the company may eventually need to become far more aggressive in creating an environment where sports fans naturally turn to Netflix first rather than simply sampling a handful of marquee events each year.
So far, year one of Netflix’s MLB agreement is two-thirds complete. While the presentation of the Home Run Derby improved noticeably from Opening Day, it’s fair to ask whether it actually moved the needle. Did it convince the average consumer to subscribe? Did it generate enough interest to make a glorified exhibition feel like must-watch television? And did Netflix do enough to promote the event on its own platform?
Can Netflix Win The Habit Battle?
We’ll find out over time. But the real battle isn’t how much Netflix is willing to spend on live sports. It’s whether the company can persuade millions of subscribers to change habits it spent nearly two decades creating.
Netflix can always write a bigger check. It has the resources to compete for almost any sports property it wants. What money can’t buy, however, is decades of consumer behavior. Convincing millions of subscribers to abandon the on-demand habits that made Netflix the world’s biggest streaming service may prove far more expensive than any rights agreement it ever signs.
Sooner rather than later, Netflix will have to decide whether becoming a true sports destination is the mission. If it is, dabbling in a few marquee events each year probably won’t be enough to change viewing habits. And if it isn’t, the company risks spending millions on sports rights while chasing an audience that never changes its routine.
Barrett Media produces daily content on the music, news, and sports media industries. Sign up for our newsletters to stay updated and get the latest information right in your inbox.
John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.