Netflix’s strategy to boost its audience and retention
Netflix has been experimenting with different ways to attract and retain its subscribers, especially after facing some quarters of stagnation. The company has recently launched a cheaper, ad-supported tier in some markets, and has been cracking down on password sharing. It has also been investing more in sports programming, which has proven to be a successful genre for the streamer.
Some of the sports docuseries that Netflix has produced include “Quarterback”, which follows a group of NFL quarterbacks heading into the new season, and “Formula 1: Drive to Survive”, which has gained a huge fan base and boosted the popularity of the sport itself. Netflix has also acquired the rights to stream some live sports events, such as the Copa America soccer tournament and the US Open tennis championship.
However, “The Netflix Cup” will be the first time that Netflix will broadcast a live sports event that it has created and sponsored. The event will showcase some of the stars from its docuseries, such as Lewis Hamilton, Max Verstappen, Daniel Ricciardo, Sergio Perez, Brooks Koepka, Dustin Johnson, Collin Morikawa, and Jon Rahm. The athletes will compete in a match play format, with four teams of two players each.
Netflix has also partnered with T-Mobile and Nespresso as the sponsors for the event, which will be available to stream globally on Netflix. The event is expected to draw a large audience of sports fans and Netflix subscribers, who will get to see their favorite athletes in a different setting.
Live sports still dominate traditional TV
Live sports have been one of the main reasons why people still watch traditional TV, even as they cut the cord and switch to streaming services. Live sports events have consistently delivered high ratings and viewership for broadcast and cable TV networks, especially during the NFL and college football seasons.
According to data from Nielsen, broadcast sports viewership was up 360% in September 2023, compared to 222% in the same period last year. Cable TV also saw a nearly 25% increase in sports watchers, while streaming viewership dropped for the second straight month by less than 2%. ESPN carried the top 11 cable TV telecasts during September, thanks to its exclusive coverage of Monday Night Football and other sports events.
Other streaming services have also been adding live sports to their offerings, in order to compete with traditional TV and attract more subscribers. Warner Bros. Discovery’s Max started airing live sports earlier this month, and plans to charge extra for its new streaming tier next year. ESPN has its own streaming service, ESPN+, which offers exclusive access to some live sports events and original content. NBCUniversal’s Peacock has also been growing its user base with its live sports coverage, such as the Olympics, Premier League soccer, and WWE wrestling.
Netflix’s entry into the live sports arena could be a game-changer for the streaming industry, as it could potentially challenge the dominance of traditional TV and other streamers in this genre. Netflix has a huge global reach and a loyal fan base, which could give it an edge over its competitors. However, it remains to be seen how well Netflix can execute its live sports strategy, and whether it can deliver a high-quality and engaging experience for its viewers.
