Christmas NFL Games Mark a New Era for Streaming
The holiday season is synonymous with family, food, and for many, American football. This year, as in previous years, NFL teams played on Christmas Day, captivating millions of viewers. Uniquely, Netflix took on the role of broadcaster, live-streaming two games along with a musical performance by Beyoncé. The event proceeded with only minor issues, a welcome outcome for the company, especially given its past struggles with live sports.
In November, a celebrity boxing match between Jake Paul and Mike Tyson faced significant technical difficulties, with Paul even claiming, “We crashed the site” after his victory. A live golf event was marred by broken microphones and a protester. Despite these challenges, Netflix is determined to expand its live sports offerings. American football will remain part of its Christmas programming for at least the next two years, and WWE Raw will transition from traditional TV to a weekly slot on the platform starting January 6th. Additionally, Netflix has secured the American rights for the upcoming women’s football World Cups.
Initially, Netflix had been hesitant to enter the live sports arena, citing high broadcasting costs as a major concern. The NFL earned $75 million per game from Netflix for this year’s Christmas broadcasts, while the WWE deal amounted to a staggering $5 billion over ten years. Technical hurdles also posed a challenge, as managing a large number of concurrent viewers can be complex for a service designed for fragmented viewing. However, major sporting events bring prestige and, crucially, new subscribers. Despite its technical issues, the Jake Paul vs. Mike Tyson match attracted a record audience and resulted in 1.4 million new subscriptions, according to research firm Antenna Data. Live sports also provide ample opportunities for advertising, a lucrative revenue stream, even for subscribers of Netflix’s ad-free plans.
While the viewing figures for the Christmas NFL games were solid, they were not extraordinary, peaking at over 27 million—about half the audience for the Paul vs. Tyson match. In contrast, the Super Bowl typically draws over 100 million viewers, presenting a significant technical challenge for streaming. Nevertheless, Netflix has a variety of options ahead, including American football and its lineup of classic Christmas films, alongside other successful programming.