Netflix will undoubtedly make history tomorrow by exclusively streaming two high-profile NFL games. The Kansas City Chiefs will face the Pittsburgh Steelers, while the Baltimore Ravens will go head-to-head with the Houston Texans. These games are part of Netflix’s ambitious push into live sports, following its recent acquisition of the U.S. streaming rights for the FIFA Women’s World Cup and a $5 billion, 10-year deal with WWE starting in 2025.
The NFL games even have a festive twist. They feature Mariah Carey’s rendition of “All I Want for Christmas Is You,” a halftime performance by Beyoncé during the Ravens-Texans game, and national anthem performances by Voices of Service and Pentatonix. Netflix plans to deliver these games to its 283 million global subscribers, with local broadcasts in participating teams’ markets and NFL+ providing mobile users access.
This move signals Netflix’s growing ambitions in live sports, a lucrative but challenging market. However, the stakes are high, as the service’s ability to stream these games without technical glitches will be closely scrutinized by fans and advertisers alike, especially after the Paul-Tyson boxing match debacle, where buffering, poor quality issues marred the event and left many viewers frustrated.
The Take:
A Critical Test for Live Streaming
The NFL Christmas games present a make-or-break moment for Netflix in live sports broadcasting. Last year’s Christmas NFL matchups collectively drew nearly 85 million viewers across CBS, Fox, and ESPN, highlighting the immense demand for these holiday games. Netflix estimates the viewership for its Christmas games could reach 35 million concurrent viewers, a significant test for its streaming infrastructure.
Concerns stem from Netflix’s prior struggles with live events. During the Tyson-Paul boxing match, around 90,000 issues were reported on Downdetector, including buffering, poor audio, and blurry visuals, which led to widespread dissatisfaction among viewers. Netflix attributed these issues to underestimating viewership demand, with 108 million global viewers tuning in, three times what was initially expected. Co-CEO Ted Sarandos later explained that during the event, Netflix “pushed the limits” of its technology and internet infrastructure.
A RotoGrinders survey of 3,016 NFL fans revealed that only 15% of respondents are highly confident in Netflix’s ability to deliver a glitch-free experience for the NFL games, while 66% expressed varying degrees of doubt. Fans of the Kansas City Chiefs were the least confident, with 42% expressing concerns about Netflix’s reliability. The stakes are exceptionally high because live sports audiences expect uninterrupted, high-quality streams and even minor disruptions could damage Netflix’s reputation.
The RotoGrinders survey highlighted doubts about Netflix’s streaming quality and revealed divided opinions on its push into live sports. While 28% of respondents expressed excitement about more live sports on Netflix, 17% opposed the idea, preferring the service to focus on its existing content. This division highlights the importance of getting the NFL broadcast right to attract new viewers and maintain trust among its existing subscriber base. Netflix’s ability to deliver a seamless NFL viewing experience will also set the stage for its upcoming WWE Raw broadcast on January 6, 2025. The WWE deal, which includes the longest-running weekly episodic program in television history, represents another high-stakes opportunity for Netflix to solidify its reputation as a reliable streaming service for live sports.
How Netflix is Preparing to Handle Streaming Issues
Netflix has assured fans and advertisers that it has applied lessons from its past challenges to ensure a smooth broadcast for the NFL Christmas games. The company told Business Insider that it worked quickly to stabilize the Tyson-Paul stream and has since adjusted its content delivery, encoding, and streaming protocols to handle more significant viewership spikes. Netflix is also optimizing systems to handle live events at an unprecedented scale and collaborating with internet service providers to expand interconnection capacity, reducing the risk of buffering or other disruptions.
The NFL games will be Netflix’s first live event, including commercial breaks, signaling the service’s push into live advertising. Sponsors like FanDuel and Verizon have already filled the inventory for both games, marking a significant milestone for Netflix’s growing ad business. The inclusion of ad breaks, alongside in-stream integrations, is expected to generate substantial revenue and demonstrate Netflix’s potential as a destination for live sports advertisers.
Growing Ambitions in Live Sports
Netflix’s foray into the NFL games is part of its broader strategy to expand its live sports portfolio. With its acquisition of FIFA Women’s World Cup rights and the WWE deal, Netflix is positioning itself as a key player in a space traditionally dominated by legacy broadcasters like ESPN and CBS. Live sports offer a unique opportunity for streaming services, as they attract engaged, real-time audiences, an appealing prospect for advertisers. Unlike traditional broadcasters, Netflix has the potential to deliver these events to audiences worldwide, making American football more accessible to international markets. However, geographic restrictions in some contracts could limit its reach, emphasizing the importance of securing favorable licensing agreements.
The Stakes: Advertisers, Costs, and Legacy Players
Live sports are a goldmine for advertisers, and Netfliknowsof the potential. Its growing sports portfolio aims to attract big ad dollars, but this success hinges on providing a glitch-free experience. The NFL games are critical for viewer trust and attracting lucrative advertising partnerships in a highly competitive market. Netflix’s advertising inventory for the NFL games is already sold out, demonstrating advertisers’ confidence in the services’ reach and engagement potential. However, scaling live sports comes with significant costs. Netflix’s $5 billion WWE deal and other high-profile acquisitions represent a significant financial commitment. To make these investments profitable, Netflix must deliver strong viewership and ad revenue while navigating rising competition from traditional broadcasters and tech giants like Amazon, which has already made strides with its exclusive NFL Thursday Night Football deal.
A Blueprint for Success
The NFL Christmas games are a defining moment for Netflix’s ambitions in live sports. The service’s ability to deliver a seamless viewing experience will shape its reputation and future in this competitive market. By addressing technical challenges, managing viewer expectations, and leveraging its global reach, Netflix can disrupt legacy players and redefine how audiences consume live sports. As Netflix prepares for its next major sports event, WWE Raw, in a couple of weeks, the success of the NFL broadcast will be a critical benchmark. For Netflix, getting the Christmas games right is not just an opportunity. It’s a necessity for building trust, driving growth, and solidifying its position as a leader in the evolving world of live sports streaming.
