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Key Takeaways
- Media executives believe Netflix wants more live events like sports, but don't think it will look to make large commitments to the space, according to a JPMorgan note.
- "Netflix wants the Super Bowl but not an NFL package," an executive told JPMorgan analysts.
- Netflix executives have made similar comments in recent quarters, saying their priority is "can't-miss, special event programming."
Netflix (NFLX) is looking to add more live events that could drive subscriptions—but not too many—according to media executives who recently met with JPMorgan analysts.
The analysts said the executives agree Netflix “is interested in more big events or stunts,” such last year’s Jake Paul-Mike Tyson fight and Tom Brady roast. “In theory this could translate to demand for sports rights; however, there was less consensus on this point and what the ultimate strategy is; ‘Netflix wants the Super Bowl but not an NFL package’ was how one executive framed it.”
Netflix executives made similar comments recently, stating that their priority was “can’t miss, special event programming.”
Analysts say Execs suggested F1 Racing as a potential deal
Some executives said the streamer’s reported interest in bidding on the rights to air Formula 1 racing —once the deal held by Disney’s (DIS) ESPN ends after the current season—could also be a fit. Analysts said that broadcasting the racing makes sense, as Netflix’s “Drive to Survive”, a docuseries about the sport, has played a part in its growing popularity in the U.S.
In recent years, a number of streaming services has made increasing moves into sports, hoping that the audience for live sporting events would help them attract new subscribers. Netflix broadcast its first NFL games on Christmas, which featured a halftime performance from Beyoncé.
Additionally, the analysts said "some industry experts noted that buyers, including Netflix, were exhibiting greater discipline on costs and budgets relative to a few years prior, with exceptions for the most premium and sought-after shows."
The shares of the streaming giant fell 1.5% to $962.48. Despite being down from their record closing price of $1,058.60 in February 2014, they are still up by nearly 60% since last year.
