Netflix Ventures Deeper into Live Sports with Tyson vs. Paul Boxing Match

In a bold move to expand its live sports programming, Netflix is set to broadcast a highly anticipated boxing match between legendary fighter Mike Tyson and social media star-turned-boxer Jake Paul this July. This event marks Tyson’s first professional fight in 19 years, positioning Netflix to potentially redefine its role in the live sports streaming market.

Labeling the event and similar live programs as “cultural moments,” Netflix aims to leverage such broadcasts to attract viewers and advertisers alike. Advertising has become a critical new revenue stream for the company, which is striving to scale its ad business to become a significant contributor to overall profits.

Traditionally cautious with its sports ventures, Netflix has previously focused on “sports entertainment,” such as its $5 billion deal with WWE. However, co-CEO Ted Sarandos recently hinted at the company’s openness to broader live sports programming under conditions that align with Netflix’s goals for engagement, revenue, and profitability. “Our North Star is to grow engagement, revenue and profit,” Sarandos stated, suggesting that Netflix could expand its live sports offerings if it proves advantageous.

Netflix has already dipped its toes into live sports with events like the “Netflix Cup,” featuring Formula 1 racers and pro golfers, and “The Netflix Slam,” showcasing tennis stars such as Rafael Nadal. Additionally, the company has embraced live comedy, streaming events like the roast of Tom Brady. Rumors also suggest Netflix may acquire rights to stream two NFL games next Christmas, indicating a possible significant expansion into traditional sports broadcasting.

Marty Conway, a sports leadership and management adjunct at Georgetown University, noted that Netflix is testing the waters across various sports to gauge audience engagement and advertising market response. “They are likely evaluating what type of audience they attract and the advertising potential these opportunities present,” Conway said.

Industry analysts see potential in Netflix’s sports ventures. Laura Martin of Needham suggested that sports streaming could boost Netflix’s profits by attracting advertisers interested in sports content. Brandon Katz of Parrot Analytics highlighted Netflix’s advantage in retaining viewers who subscribe for live sports due to its extensive content library and targeted advertising capabilities.

Despite a slow start, Netflix’s ad-supported tier boasted over 23 million monthly active users as of January 2024, demonstrating strong potential for growth. Katz emphasized that advertisers see long-term promise in Netflix, given its resilience in overcoming challenges as a leading content producer.

As Netflix explores deeper integration into live sports, it faces competition from established players like Apple, Amazon, Disney, and Warner Bros. Discovery. These companies have secured significant sports broadcasting deals, raising questions about Netflix’s ability to negotiate with major sports leagues like the NFL and NBA. Conway suggested that while Netflix has engaged in discussions with all major sports leagues, there remains a gap between what these leagues offer and Netflix’s objectives.

William Mao, a media rights executive at Octagon, argued that Netflix’s focus on individual-driven sports content, like the Tyson vs. Paul match, is a smart strategy. “The match is more about the personas of Tyson and Paul than traditional boxing,” Mao explained, questioning the necessity for Netflix to heavily invest in traditional sports.