Netflix’s Winning Strategy in the Sporting Rights Game: The Key to Success

Streaming has changed the game when it comes to watching TV, and Netflix (NASDAQ: NFLX) has been at the forefront of this movement. While live sports have been one of the mainstays of traditional television, even that is slowly shifting towards streaming platforms. In fact, out of the top 100 most-watched shows in 2025, a whopping 96 were sports events. As the popularity of sports on screens continues to rise, so do the price tags for broadcasting rights.

Netflix has been making strides in the live sports arena, but they’re doing things a bit differently than the traditional networks. Instead of going after every single game, Netflix has focused on quality over quantity. Take, for example, their deal with the National Football League in 2024, where they reportedly paid around $75 million per game for exclusive rights to broadcast Christmas Day games. It’s not a small amount, but compared to what traditional networks shell out annually, it’s a much lower cost. Netflix has also secured exclusive rights to Major League Baseball’s Opening Day, Home Run Derby, and Field of Dreams game for the 2026 season, as well as the FIFA Women’s World Cup in 2027 and 2031.

One of the key differences in Netflix’s approach is their revenue model. Unlike networks that rely heavily on advertising, Netflix makes its money from subscriptions. This means they don’t need to show every single game to reap the benefits of live sports. Additionally, Netflix has been growing its ad-supported memberships, which has become a significant source of growth for the company. The flexibility of their strategy allows them to scale their spending as needed, such as the $5 billion commitment over 10 years to broadcast World Wrestling Entertainment’s RAW programming on Monday nights.

As Netflix continues to expand its subscriber base, delve into sports content, and explore new ways to monetize, the company is only getting stronger. Their return on invested capital has surged over the past few years, reaching over 25%. Analysts on Wall Street are optimistic about Netflix’s future earnings growth, expecting an annualized growth rate of 22%. With the stock currently trading at 31 times its 2026 earnings estimates, it’s considered a solid buy.

Netflix has already proven itself as a leader in the entertainment industry, and their approach to sports content could cement their position for years to come.