Could Live Sports Be the Winning Play for Netflix's Future Revenue?
Could Live Sports Be the Winning Play for Netflix's Future Revenue?
Jack Delaney, The Motley FoolThu, April 30, 2026 at 6:51 AM UTC
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Key Points -
The global market for sports streaming is growing.
Netflix has been expanding its menu here.
It will take some time for the company's live sports expansion to have a real impact on subscriber growth.
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With so much video content available, subscription streaming services need to find ways to stand out from rival platforms if they want to attract and retain paying customers. That's harder than it sounds, but there are a few sources of unique content available that more streamers are tapping into.
For Netflix (NASDAQ: NFLX) -- which this month delivered a first-quarter earnings report that sent its shares tumbling -- adding more live sports could be part of the solution.
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A person holding a remote looking for something to stream on a television.
Image source: Getty Images.
There's big money in sports
The global sports streaming market is expected to more than double in value from $33.9 billion in 2024 to $68.3 billion by 2030, according to Grand View Research. That forecast may even prove conservative as the sports betting market expands. As wagering on sports becomes more commonplace, more bettors will want to watch a live event to keep track of the action. Grand View Research projects that the sports betting market will grow to $187.3 billion by 2030.
Netflix has been offering more sporting events, although it hasn't been the fastest rollout. The company's first foray was a live golf tournament in 2023.
In the years since, it has streamed football games, wrestling events, a boxing match between Mike Tyson and Jake Paul, and more. In May, it has a packed schedule, including a mixed martial arts match between Ronda Rousey and Gina Carano, and the Formula One Canadian Grand Prix.
"We are ramping up our sports events globally and local-for-local, both in volume and profile," said CEO Ted Sarandos on the company's Q1 earnings call, "because we bring and receive a lot of value and, most importantly, our members receive a lot of value."
A revenue generator that will take time to build out
Access to live sports events, particularly ones that can't be viewed in other ways, can attract new subscribers and give Netflix an edge against its competitors, which in turn can contribute more revenue. The catch is that getting the rights to stream those live events isn't cheap, and it's a cost that could take years to yield benefits.
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Just to stream two football games on Christmas Day 2024, Netflix paid the National Football League $150 million. It also paid $5 billion for the rights to stream World Wrestling Entertainment's weekly show for 10 years.
In the short term, shareholders won't see immediate benefits from Netflix's expansion of its sports content. In the long term, they can expect that by adding more of this unique and engaging content, the company will attract more subscribers. However, investors will need to be patient while the revenue from those new audiences builds.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.
Source: “AOL Money”
