According to individuals with knowledge of the situation, Netflix is in talks to live-stream its first sporting event this autumn: a celebrity golf tournament featuring professional golfers and Formula One drivers.
Several individuals have stated that the company is in the preliminary stages of planning the golf tournament. They said the event would take place in Las Vegas and feature celebrities from the documentaries “Drive to Survive,” about Formula One auto racing, and “Full Swing,” which followed professional golfers during the 2022 season.
This would be Netflix’s first foray into live-streaming of sports, a topic executives have debated for over a year. Several individuals stated that discussions about the tournament are in their infancy.
Several major streaming services have begun purchasing significant sports-rights packages, from football to baseball, in an effort to attract new subscribers and increase their advertising revenue.
Netflix has largely avoided competing for these agreements, focusing instead on documentary programming. Since its debut in 2019, the “Formula 1 Drive to Survive” series has helped the global racing league acquire widespread recognition.
The proposed golf tournament would provide an opportunity to experience live sports programming without purchasing a major-league package.
Co-Chief Executive Ted Sarandos stated in January, “We aren’t anti-sports, we’re pro-profit,” adding that the company evaluates opportunities and its stance may alter. He stated that Netflix had not yet figured out how to bid on major league sports rights in a manner that would be profitable for the company.
The Wall Street Journal previously reported that Netflix bid for the live U.S. streaming rights to Formula One in 2016, but ESPN ultimately won a three-year deal to retain the global race package on ESPN, ESPN2 and ABC. The Journal previously reported that Netflix has also bid or considered competing for the rights to tennis and cycling events and investigated investments in lower-profile leagues.
With varying degrees of success, Netflix has begun experimenting with live-streaming other categories of entertainment events. Its first live event, a Chris Rock comedy special in March, got off without a hitch.
In April, however, Netflix botched a live broadcast of a “Love Is Blind” reunion episode. An disruption that lasted more than an hour prompted an apology from the company and a decision to record and re-release the event the following day.
Acquiring live-sports broadcast rights could present a new opportunity for Netflix’s nascent advertising business, one of the streaming service’s key strategic shifts as it seeks new revenue streams.
According to Ed Desser, president of sports-media consulting firm Desser Media, Netflix’s decision to live stream a celebrity golf tournament as its first sporting event is a sign that the company is exercising caution, an approach that makes sense given the difficulties it encountered with the “Love Is Blind” reunion.
Before proceeding with mission-critical sporting events, they must reassure potential licensees that everything will function properly. This is a relatively risk-free venture.
