Netflix bets on sports: A paradigm shift in streaming?

The streaming giant Netflix could have gained more than 9 million new subscribers in the last quarter of 2024 by increasing its focus on sports content. This development was facilitated by events such as the highly anticipated boxing match between Jake Paul and Mike Tyson, as well as the introduction of popular NFL games. Over 60 million households worldwide watched the fight in November, while NFL games on Christmas Day attracted an average of 26.5 million viewers in the United States. The addition of live sports content could help Netflix create stability on the advertising side while also strengthening the retention of existing subscribers. At the same time, the advertising business at live events, which traditionally attract large and loyal audiences, offers lucrative potential. Analysts expect Netflix to raise its standard subscription prices to attract more users to the ad-supported model. In addition to sports content, the return of the successful South Korean series "Squid Game" also contributed to the increase in subscribers, with the second season achieving a record 68 million views during its premiere week. Notably, this quarter will be the last time Netflix reports subscriber growth individually. In the future, the company will focus on other performance metrics such as revenue and profit. Analysts emphasize that Netflix needs to build trust among brands and advertisers to further drive growth in the advertising segment. With forecasted ad revenue of $528.9 million in the fourth quarter and an expected total revenue growth of 14.5% to $10.11 billion, Netflix continues to show impressive financial strength. Netflix shares, which rose 83% last year, are currently trading at a multiple of expected earnings below the five-year average. Analysts see Netflix well-positioned with a strong programming lineup for 2025 to expand its success in streaming. Planned highlights include the conclusion of the hit series "Stranger Things" and the second season of the "Addams Family" spin-off "Wednesday." In addition, Netflix recently secured the rights to the FIFA Women's World Cup in 2027 and 2031.