TKO Holdings President and COO Mark Shapiro believes Netflix has become a destination for sports. In fact, he told CNBC that stories about the streamer’s lagging engagement metrics are overblown.
What We Know: Shapiro sat down with CNBC’s David Faber alongside TKO CEO Ari Emanuel last week. Meanwhile, Netflix members watched roughly 97 billion hours in the first half of 2026, up only about 2%. However, the stock price continues to drop as Netflix’s recent engagement trends are “worrying,” Wells Fargo told clients in a Friday note, citing an 8% drop in viewership time per subscriber per day in the first half of this year compared to the same period in 2023. Despite the metrics, Shapiro credited the platform and it’s growing slate of sports related events as reasons to remain positive.
What They Said: (All quotes via CNBC):
Mark Shapiro feels that Netflix has become the first destination for sports content: “They have great premium quality content. In the same way, you’re going to go to ESPN or you’re going to go to Paramount Plus. If you’re looking for sports, you’re going to go to Netflix first and foremost when you turn on the tube. It’s long form. Now they’re getting into the influencer space, podcast space, talk space, and the sports space. They really have it all, and they’re making the investment. Spending more money, and they’re listening to their viewers. We think the engagement is incredibly strong, and they’re willing to experiment with new models and new creators and new models. It’s really first stop for us.”
Mark Shapiro feels the lower engagement stories about Netflix are being overblown: “They’re growing their business with the AVOD platform. They’re continuing to commit to more premium content. They’re getting significantly into the sports space. I think the engagement thing is getting blown up. Yes, YouTube’s a great player. Yes, YouTube’s mostly short form, by the way. It’s creator economy. What they’re doing is completely different from what Netflix is doing.”
What Remains Unclear: Still, Wall Street isn’t fully convinced. HSBC and Wells Fargo both downgraded Netflix recently, citing YouTube competition and a weaker original slate. Netflix’s sports lineup now includes select NFL games, MLB events and the Women’s World Cup. Executives have also stated interest in the FIFA men’s World Cup in 2030. However, it’s unclear whether those events can lift everyday viewing, not just sign-ups.
What It Means: For TKO, Netflix’s health matters directly. After all, the streamer is paying roughly $5 billion over 10 years for WWE Monday Night Raw. Consequently, TKO has every reason to champion Netflix as sports fans’ first stop. However, the lagging engagement numbers that the platform shares does potentially pose a risk for future media deals if the platform cannot produce more engagement around the events they buy.
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