Netflix became a ubiquitous streaming service with a simple formula: offer must-watch TV and movies using industry-leading technology at a price point below cable or other entertainment alternatives.
Speaking to investors on Tuesday, after laying off roughly 1,000 employees (6% of its global workforce, including a dismissal of chief content officer Bela Bajaria) while facing a stock slump that has seen Netflix’s share price fall 47% year-on-year, co-CEO Ted Sarandos reiterated the company’s strategy has not changed.
“It’s always been, and it continues to be to combine best-in-class entertainment with industry-leading discovery, global distribution and the best possible monetization,” he said. “We want to be the must-have entertainment service. The first one members check for a great series or a great film and the last service they’d ever cancel.”
Still, Netflix’s offering has evolved in recent years. The company has added podcasts and video games, seeking to increase how much time members spend on its platforms as it faces competition, particularly from free options such as Instagram, TikTok and YouTube. Netflix now sells ads, and it has cracked down on password-sharing. It has also turned to live sporting events after eschewing the category for years. Netflix has streamed a series of fight nights, introduced a new deal with MLB in 2026 and expanded its NFL relationship to include five games this season. Next year, it will carry the FIFA Women’s World Cup in the U.S. and Canada.
“These events break through,” Sarandos said. “They drive new membership, they add fuel to our ad revenues.”
As Netflix builds its library of shows, live events bring people back to the service and keep them signed up between binges. According to data from research firm Antenna, Netflix’s coverage of the Rams and 49ers’ Week 1 NFL tilt generated a 2.2x sign-up over the company’s baseline, good for roughly 250,000 subscriptions.
Slower growth and concerns about the company’s ability to consistently produce culture-dominating content in the U.S. are among the reasons being given for the stock’s current slide.
Introducing new chief content officer Peter Rice, Sarandos specifically called out the former Fox and Disney executive’s experience with live sports in addition to Rice’s TV and movie work. Netflix signaled it will focus on its core entertainment value amid investor worries, but live events now appear to be part of that central mix. Multiple analysts who retain bullish outlooks on Netflix also cited upcoming sports content as reasons for optimism.
As for what sports Netflix might stream next, it’s worth looking at the upcoming available options:
Local team rights
Amazon’s Prime Video, DAZN and ESPN have all picked up local live streaming rights across MLB, the NBA and the NHL. Netflix has remained out of that specific fray. Regional games are anathema to the company’s current strategy. They are by nature limited to select areas, offering season-long tonnage rather than the marquee events Netflix wants to be known for. But they also promise to bring dedicated fanbases who will consume hours of coverage—ads included. In the coming years, leagues are likely to take control of more teams’ local rights, opening the way for a potential hub model that might fit better with large streamers.
Non-traditional sports events
Netflix made its name in live sports broadcasting with its coverage of Jake Paul fighting Mike Tyson. It continues to emphasize its interest in “eventized” sporting events, whether that’s an NFL game on Thanksgiving Eve, MLB’s Home Run Derby or next summer’s FIFA action. In that vein, could Netflix try to move Savannah Bananas behind a paywall? Or look to the youth and college sports leagues, where it is easier to stand-up and own one-off events or tournaments compared to established pro leagues?
National rights packages
Of course, Netflix could also mirror other sports media ventures in bidding for the most valuable rights available to build out its portfolio. The NFL appears eager to sell more games to streamers, including a potential season-long, international-heavy package. MLB, MLS, the NHL and the NWSL are all set to re-do their national deals in the coming years as well.
Third-party services
Amazon, Disney and YouTube have bolstered their sports packages by selling subscription products from other companies. You can buy Fox One alongside ESPN, subscribe to Paramount+ as a Prime Video Channel or—soon—sign up for a combo of YouTube Premium and Peacock. Netflix has already tested a version of this model in France, distributing TF1’s live TV channels and streaming shows through the Netflix app. Deals with the likes of the Tennis Channel or Versant could provide content—and grounds for further experimentation.
“We are always seeking new ways to expand our offering, new ways to provide more professionally produced film, TV, live events, more core entertainment value,” Netflix co-CEO Greg Peters said Tuesday. “And that means we do things like licensing. It also means we look for new creative partnerships, like we did with TF1.”
Service acquisition
Netflix has generally looked to build its platform rather than buy components, but its bid for Warner Bros. Discovery last year was the latest demonstration of its leadership’s flexibility. Big tech companies are already being discussed as potential buyers of a soon-to-be-independent NBCUniversal, as one example. However, Netflix appears to be more focused on refining its own properties rather than taking on a grand new project.
“I know that we could do better,” Sarandos said. “We’ve seen an opportunity to take our slate to the next level.”