Sports helped Netflix soar, but execs are wary of the high price of media rights

Core Viewpoint - Netflix has reported a strong quarter driven by record-breaking live sports events, but the company is cautious about entering expensive sports deals [1][8]. Group 1: Performance Highlights - The fourth quarter was bolstered by significant live sports events, including the Jake Paul-Mike Tyson fight, which was the most-streamed sporting event ever, and the NFL Christmas Day games, which were the two most-streamed NFL games in history [2]. - Netflix has secured exclusive US rights to the FIFA Women's World Cup for 2027 and 2031 and has initiated a major partnership with WWE [2]. Group 2: Analyst Insights - Analysts are advocating for Netflix to expand its sports portfolio, although they note that few US sports rights will be available for renewal in the coming years [3]. - The NBA has a contract for the next 11 years, and the NFL signed an 11-year deal in 2021, with ESPN's UFC rights becoming available in 2025, which may present an opportunity for Netflix [4]. Group 3: Strategic Approach - Netflix executives emphasized that the company will maintain its current strategy regarding sports, treating it as part of its live programming, which also includes other live events [4][6]. - The company aims to leverage live programming, particularly sports, to enhance its advertising business, which is expected to accelerate in 2025 and beyond [4][8]. Group 4: Cost Management - Netflix is committed to cost discipline, indicating that live sports will likely represent a small percentage of total view hours and content expenses [5]. - The company has expressed a preference for owning content rather than renting, which aligns with its cautious approach to the rising costs of live sports rights [5][6].