Netflix's Event-First Strategy for Global Live Sports - Episode Hero Image

Netflix's Event-First Strategy for Global Live Sports

The Varsity · · Listen to Original Episode →
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TL;DR

  • Netflix pursues an "event-first" strategy in live sports, prioritizing tentpole events that generate global conversation over high-volume programming to attract its 300 million+ members.
  • The company's live sports evolution, from the Netflix Cup to NFL Christmas games, demonstrates a strategic shift towards major, globally recognized events that create "water cooler" moments.
  • Netflix's approach to live sports leverages its entertainment expertise to "eventize" content, aiming for unique, must-watch experiences that can only be found on its platform.
  • By acquiring rights for major events like the FIFA Women's World Cup and MLB's Field of Dreams game, Netflix aims to own entire conversations and attract new subscribers through exclusive, high-profile content.
  • Netflix views its live sports strategy as a long-term investment, focusing on building partnerships and creating compelling content that complements its existing entertainment offerings.
  • The company's success with the WWE deal, a long-term partnership, validated its internal approach to live content and paved the way for larger sports rights acquisitions.
  • Netflix prioritizes global reach and member value, evidenced by its ambitious FIFA Women's World Cup broadcast plan, offering simultaneous English and Spanish feeds in the US.

Deep Dive

Netflix is pursuing an "event-first" strategy in live sports, prioritizing tentpole events that generate global conversation and engagement over high-volume programming. This approach leverages Netflix's massive subscriber base and global reach to create unique, must-watch moments that drive platform value, rather than replicating traditional sports network models.

The core of Netflix's strategy is to "eventize" sports content, meaning they focus on making individual events feel larger than life and exclusive to the platform. This is exemplified by their acquisition of NFL Christmas Day games, the Jake Paul-Anthony Joshua boxing match, and the upcoming FIFA Women's World Cup. These are not just games; they are spectacles designed to capture global attention and drive subscriber engagement. The implication here is that Netflix aims to redefine how sports are consumed, shifting from a passive viewing habit to an active, anticipatory experience tied to specific, high-impact moments. This contrasts sharply with traditional sports broadcasters who often focus on a broad slate of weekly games.

This event-first approach has significant downstream effects. Firstly, it allows Netflix to leverage its existing content engine, integrating live events with documentaries and other unscripted content, creating a richer programming ecosystem. For instance, they can build anticipation for a live boxing match through an "Untold" documentary on a fighter, or create shoulder programming like podcasts to surround major events. Secondly, by focusing on select, high-profile rights, Netflix avoids the massive, ongoing financial commitments of traditional media companies for season-long packages, mitigating the risk of overspending on content that may not resonate globally. This selective approach also allows them to build deeper partnerships with leagues, focusing on collaborative growth rather than simply acquiring broadcast rights. The strategy also necessitates significant investment in production and technology to ensure a seamless live viewing experience, as demonstrated by their efforts to resolve early streaming issues.

Ultimately, Netflix's ambition is to become a global sports destination by curating a portfolio of major events that appeal to its diverse subscriber base. The success of this strategy hinges on their ability to consistently deliver these "water cooler" moments, proving that live sports can be a powerful driver of engagement and value within a streaming-first model, even if it means eschewing the volume-driven approach of legacy sports broadcasters.

Action Items

  • Audit Netflix's live sports streaming infrastructure: Identify and address potential buffering or connection issues for 100 million concurrent users.
  • Create a runbook template for live sports event production: Define 5 required sections (setup, common failures, rollback, monitoring) to ensure consistent execution.
  • Measure the correlation between tentpole event viewership and subscriber acquisition/retention for 3-5 major sports acquisitions.
  • Design a framework for evaluating sports rights acquisitions: Prioritize events that generate global conversation and align with Netflix's "event-first" strategy.
  • Track viewership and engagement metrics for 5-10 tentpole sports events to inform future content acquisition and production decisions.

Related Episodes

Key Quotes

"Relationships matter more in sports media than in any other business that I've covered. I've seen executives make questionable deals just to keep working with business partners that they like."

The author, John Ourand, highlights the significant role of personal relationships in the sports media industry. This suggests that long-standing partnerships and personal connections can sometimes outweigh purely business-driven decisions when it comes to securing or renewing media rights. Ourand uses the example of ESPN's extended deal with the Heisman Trust to illustrate this point.

"It's the middle class of sports rights that are in trouble and might be hit over the next few years. It's to figure out where that line falls."

This quote from John Ourand points to a potential consolidation in the sports media rights market. Ourand suggests that while deals for major leagues like the NFL and NBA are growing, smaller or mid-tier sports rights may face financial challenges and could be squeezed out of the market. This indicates a shift in how sports rights are valued and distributed.

"Our co CEO Ted Sarandos he says it's an event strategy more than a sports strategy. You know obviously we have you know incredible history in the sports documentary space but in the live sports space it's really you know what are those events that are going to create conversation that are going to be that water cooler conversation that are going to bring people from around the world who want to click on Netflix and watch it."

Gabe Spitzer explains Netflix's approach to live sports by referencing Ted Sarandos's "event strategy." Spitzer clarifies that Netflix is not aiming for a high volume of sports content but rather focusing on major events that can generate global buzz and attract a large, engaged audience to the platform. This strategy prioritizes impact and conversation over sheer quantity.

"For us it's really about access and authenticity. How can we surprise viewers? How are you letting them in in ways that they can't just get on social media and other places?"

Gabe Spitzer discusses Netflix's strategy for sports documentaries, emphasizing the importance of "access and authenticity." Spitzer explains that the goal is to provide viewers with unique insights and behind-the-scenes perspectives that are not readily available through other platforms like social media. This approach aims to create compelling content that surprises and engages the audience.

"For us it's less about taking something away and more about what can we do that brings people to Netflix and is exclusive on Netflix. So I don't think it's we have to take this from them to give it to us; it's what's going to be most valuable to our members."

Gabe Spitzer articulates Netflix's perspective on acquiring content, particularly in relation to platforms like YouTube. Spitzer clarifies that Netflix's strategy is not about competing to take content away from others but rather about securing exclusive content that adds value for their subscribers and drives engagement with the Netflix platform itself. This highlights a focus on unique offerings and member value.

"I think for us at least for right now, a more random game on a Friday night is not necessarily the same for us as opening night or home run derby. As a fan, you know what those mean and you might come to to watch on Netflix."

Gabe Spitzer explains Netflix's current strategy regarding Major League Baseball (MLB) content. Spitzer differentiates between a "random game" and specific, high-profile events like Opening Night or the Home Run Derby. He suggests that these marquee events hold more appeal for Netflix's "event strategy" as they are recognizable to fans and more likely to drive viewership on the platform.

Resources

External Resources

Books

  • "Hit It Hard" by John Daly - Mentioned as a documentary that the interviewee worked on.
  • "Untold" series - Mentioned as a series that focuses on the biggest and best names in sports and has had successful installments like "Beckham" and "Simone Biles."
  • "Quarterback" - Mentioned as a documentary series done with Omaha and NFL Films.
  • "America's Sweethearts" - Mentioned as a documentary series about the Dallas Cowboys Cheerleaders.
  • "Drive to Survive" - Mentioned as a successful Netflix show that has inspired many spin-offs.
  • "The Last Dance" - Mentioned as a memorable documentary that Netflix shared rights to with ESPN.
  • "24/7" series - Mentioned as a series from HBO that the interviewee worked on during boxing's heyday.
  • "Captains" - Mentioned as a documentary Netflix had done with FIFA.
  • "Under Pressure" - Mentioned as a documentary Netflix had done with FIFA about the US Women's National Team.
  • "Beckham" - Mentioned as an example of a look-back story in documentaries.
  • "Simone Biles" - Mentioned as an example of a documentary showcasing vulnerability.

Articles & Papers

  • "The Varsity" newsletter - Mentioned as a private email where the host broke news of a rights deal.

People

  • Gabe Spitzer - Vice president of sports at Netflix, guest on the podcast.
  • John Ourand - Host of "The Varsity" podcast and Puck's sports correspondent.
  • Jake Paul - Boxer featured in a Netflix fight and documentary.
  • Anthony Joshua - Boxer featured in a Netflix fight.
  • Mike Tyson - Boxer featured in a Netflix event and documentary.
  • Ted Sarandos - Co-CEO of Netflix.
  • Brandon Rigg - Mentioned as a proponent of live functionality on Netflix.
  • Bella Bajaria - Chief Content Officer at Netflix, proponent of WWE deal.
  • Chris Fowler - Host of the Heisman Trophy presentation for 32 years.
  • Kurt Dargis - ESPN executive.
  • Jeff Price - New CEO of the Heisman Trust.
  • Mark Shapiro - Mentioned in relation to WWE deal discussions.
  • Nick Khan - Mentioned in relation to WWE deal discussions.
  • Paul Levec - Mentioned in relation to WWE deal discussions.
  • Han Schroder - Mentioned in relation to NFL discussions.
  • Annie Bose - Mentioned in relation to NFL discussions.
  • Snoop Dogg - Performer for a halftime show during an NFL game on Netflix.
  • Lainey Wilson - Performer for a halftime show during an NFL game on Netflix.
  • Wayne Gretzky - Mentioned in relation to pronunciation of countries.
  • Kate Jackson - Staff member at Netflix with experience from ESPN working in soccer.
  • Matt Leach - Staff member at Netflix with experience from ESPN working in soccer.
  • Eli Velazquez - Ran sports at Telemundo.
  • Timmy Pitaro - Mentioned in relation to ESPN opting out of an MLB deal.
  • Canelo Alvarez - Boxer featured in a Netflix event.
  • Terence Crawford - Boxer featured in a Netflix event.
  • Katie Taylor - Boxer featured in a Netflix event.
  • Amanda Serrano - Boxer featured in a Netflix event.
  • Ryan Reynolds - Actor, associated with Mint Mobile.
  • LeBron James - Basketball player, mentioned in analogy.
  • Tiger Woods - Golfer, mentioned in analogy.
  • Lionel Messi - Soccer player, mentioned in analogy.
  • L. Duncan - First host hired by Netflix for sports content.
  • Noah Eagle - Father and son calling NFL games on Netflix.
  • Ian Eagle - Father and son calling NFL games on Netflix.
  • Nicole Byer - Host of "Nailed It" on Netflix.
  • Greg Whiteley - Director mentioned in relation to documentary filmmaking.
  • The Way Brothers - Directors mentioned in relation to documentary filmmaking.
  • Jason Herr - Director of "The Last Dance."
  • Hulk Hogan - Wrestler, subject of an upcoming documentary.
  • Dion Sanders - Athlete, subject of documentaries.
  • Greg Peters - Co-CEO of Netflix.
  • Dan - Host of "Heed the Call."
  • Dominic Pagoni - Mentioned for work in setting up an interview.
  • Gabby Grossman - Executive editor from Puck.
  • Ben Landy - Executive editor from Puck.
  • John Kelly - Executive editor from Puck.
  • Bob Tabbador - From Odyssey.
  • Patrick Antonetti - From Odyssey.
  • Mark Marlo - From Nesson.

Organizations & Institutions

  • Netflix - Streaming service, primary subject of discussion.
  • ESPN - Sports television network, mentioned in relation to rights deals and talent.
  • Heisman Trust - Organization associated with the Heisman Trophy.
  • CBS - Television network, producing NFL games for Netflix.
  • Fox - Television network, mentioned in relation to NFL rights.
  • NFL (National Football League) - Professional American football league, with games broadcast on Netflix.
  • NBA (National Basketball Association) - Professional basketball league.
  • WWE (World Wrestling Entertainment) - Sports entertainment company, with a deal with Netflix.
  • FIFA - International governing body of association football, with rights deals with Netflix.
  • MLB (Major League Baseball) - Professional baseball league, with content on Netflix.
  • PFF (Pro Football Focus) - Data source for player grading.
  • Amazon - Company mentioned in relation to sports streaming.
  • Tyson - Mentioned in relation to a massive series coming out.
  • Omaha - Production company, mentioned in relation to "Quarterback."
  • NFL Films - Production company, mentioned in relation to "Quarterback."
  • The Ringer - Media company, associated with podcasts.
  • Barstool - Media company, associated with podcasts.
  • iHeartRadio - Radio network, associated with podcasts.
  • Puck - Media company, associated with the podcast.
  • Odyssey - Podcast network.
  • Nesson - Mentioned as a regional sports network.
  • WBD (Warner Bros. Discovery) - Company mentioned in relation to a potential deal.
  • Paramount - Company mentioned in relation to a potential deal.
  • TKO - Company mentioned in relation to a boxing event.
  • HBO - Television network, mentioned for its past boxing coverage.
  • Spotify - Music streaming service, with a larger partnership with The Ringer.

Videos & Documentaries

  • Jake Paul vs. Anthony Joshua fight - A made-for-Netflix boxing match.
  • NFL games on Christmas Day - Games broadcast by Netflix.
  • Netflix Cup - An exhibition golf event.
  • Chris Rock special - Netflix's first live event.
  • Jake Paul vs. Mike Tyson event - A significant live event for Netflix.
  • Women's World Cup (2027) - Upcoming FIFA event with Netflix rights.
  • MLB Opening Night game - A baseball game broadcast by Netflix.
  • Field of Dreams game - A baseball game broadcast by Netflix.
  • Home Run Derby - A baseball event broadcast by Netflix.
  • World Baseball Classic (Japan) - Baseball event with Netflix rights in Japan.
  • Yankees vs. Giants game - A baseball game broadcast by Netflix.
  • Wrestlemania - A major WWE event.
  • Raw - A WWE show.
  • Smackdown - A WWE show.
  • The Commanders vs. Cowboys game - An NFL game on Christmas Day.
  • The halftime show with Snoop Dogg - Entertainment during an NFL game on Netflix.
  • The halftime show with singers from K-Pop Demon Hunters - Entertainment during an NFL game on Netflix.
  • The halftime show with Lainey Wilson - Entertainment during an NFL game on Netflix.
  • The Tyson series - A massive series coming out about Mike Tyson.
  • Hulk Hogan documentary - An upcoming documentary about Hulk Hogan.
  • The Untold series - A series focusing on big names in sports.
  • The Last Dance - A documentary series about Michael Jordan and the Chicago Bulls.
  • Quarterback - A documentary series.
  • Drive to Survive - A documentary series about Formula 1.
  • America's Sweethearts - A documentary series about the Dallas Cowboys Cheerleaders.
  • The Sean Holmes documentary - A documentary that rivaled scripted programming in viewership.
  • The Beckham documentary - A documentary mentioned as an example of a look-back story.
  • The Simone Biles documentary - A documentary mentioned as an example of vulnerability.
  • The Hulk Hogan documentary - An upcoming documentary.
  • The Dion Sanders documentary - A documentary.
  • The Mike Tyson documentary - A documentary.
  • The John Daly documentary - A documentary the interviewee worked on.
  • The "Untold" series - Mentioned as a series focusing on big names and stories.
  • The "Captains" documentary - Done with FIFA.
  • The "Under Pressure" documentary - Done with FIFA.

Tools & Software

  • GoDaddy Airo - AI tool for creating business assets like logos and websites.
  • Indeed Sponsored Jobs - Tool for promoting job posts to reach quality candidates.
  • Thumbtack - Platform for hiring home professionals.
  • Mint Mobile - Wireless service provider.

Podcasts & Audio

  • The Varsity podcast - The podcast being discussed.
  • Pardon My Take - A podcast from Barstool.
  • Bill Simmons podcast - A podcast from The Ringer.

Other Resources

  • Prediction Markets - Mentioned in relation to skirting state authority and posing risks to consumers.
  • Sports Docs - Mentioned as a content category for Netflix.
  • Live Sports Strategy - The approach Netflix is taking to sports content.
  • Event-First Sports Strategy - Netflix's strategy for sports content.
  • Tentpoles - A strategy of focusing on major events.
  • Selective Rights Plays - Acquiring rights for specific events.
  • Global Sports Push - Netflix's ambition to be a global sports destination.
  • Sports Documentaries - A content area for Netflix.
  • Live Sports - A content category for Netflix.
  • Sports Docs Viewing - Measured in hours, indicating audience engagement.
  • Follow Doc Genre - A genre of documentaries that may have reached a tipping point.
  • Video Press Releases - A criticism of some all-access documentaries.
  • Shoulder Programming - Content that complements major events.
  • Algorithm - Used by Netflix to suggest content.
  • Video Podcasts - Podcasts available in video format on Netflix.
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