Netflix’s Pivot to Live Streaming – Will They Get F1 Rights?
The streaming services market is becoming increasingly saturated, with more companies like Disney, Paramount, Amazon and others taking the stage. Netflix has been the market leader for years but has recently been experiencing a declining subscriber base. So lately, Netflix has been looking into live streaming content.
Proven concept on multiple fronts
The iGaming industry is a niche where live streaming games attract new users. Games with live dealers and players create new interactions, and playing in LeoVegas live casino is the closest thing to visiting the traditional physical casino.
Traditional broadcasters also have a declining influence, and their last resort is News and live sports broadcasts. So one of the areas where Netflix could pivot is sports, with rumours of the company competing for the F1 exclusive rights.
Looking for turnaround
In the last quarter, Netflix had an awful financial report as a direct consequence of the streaming service losing more than 200,000 subscribers globally. This disastrous result was reflected in the company’s share value, which declined by more than 70%.
Some of the quick fixes Netflix is contemplating include tackling the customers who share the passwords and offering cheaper subscriptions with commercials. Netflix even started offering video games on its platform, but these are only mobile games, not full-fledged AAA games.
Live streaming
With the company taking a hard hit in subscriber growth, Netflix has elaborate plans to offer live streaming. This idea is in its early stages, but there is some evidence of what the streaming service plans.
Netflix plans to create live streaming for its numerous unscripted shows and stand-up specials. The main areas where the company will explore live streaming options are events, reality, and live comedy. Competitors like Disney+ are testing the same waters with production of the Academy Awards nomination and plans for the famous “Dancing with the Stars” show.
Some of the actual live streaming content Netflix could stream include competitive shows like “Dance 100”, reality program “The Circle,” or stand-up performers like Larry David, Dave Chappelle, and others.
Going into sports
One area Netflix was reluctant to dive into was sports, but according to the latest reports, this will also change. Global auto sports, most notably Formula 1, has a massive increase in popularity and ratings in the US, and media rights are up for grabs in 2023.
Reportedly, three companies are bidding for media rights. Disney-owned ESPN, NBC Universal, and Netflix are in the mix for the F1 rights.
ESPN is the US sports network with the most developed infrastructure for the F1 broadcasts. Formula 1 asks around $100 million for the media rights, and the reports suggest ESPN has a bid of $70 million.
So far, there are no reports on how much NBCSN is offering. As for Netflix, which doesn’t have a tradition in sports, their bid is also not outed.
Netflix has some connections with the global auto sport with their recently released documentary “Schumacher” and trending series “Drive to Survive.”
Some of Netflix’s fierce competitors, like Amazon Prime, already have live sports on their platform. For example, Amazon has US Open tennis major and Thursday NFL games, which have huge ratings.
With the success of shows about Formula 1, Netflix is looking hard into buying the media rights for the Octane circus. The streaming giant is looking for exclusive rights to provide its subscribers with premium content. The live streaming of F1 races would go hand-in-hand with the “Drive to Survive,” whose. Season 4 showcases the 2021 season with a massive rivalry between Lewis Hamilton and Max Verstappen and Mercedes vs. Red Bull teams.
F1 Miami Grand Prix was also a massive success in the 2022 season, attracting the biggest American celebrities and adding fuel to the popularity fire in North America.
