Netflix (NFLX 0.20%) is gradually embracing live events as part of its larger growth and engagement strategy. From high-profile boxing matches to famous climbers scaling skyscrapers, some Netflix events have landed flawlessly, while others have left viewers groaning over a lackluster experience.
NASDAQ: NFLX
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The streaming service recently announced it will host five NFL games in this upcoming season, marking a bold step into the live entertainment space. The crown jewels of the sporting events industry in the U.S. are, without a doubt, NFL games. The NFL is consistently the most-watched league among Americans.
NFL fans are loyal and eager to watch their favorite teams, which means this partnership could boost subscriber numbers, ad revenue, and Netflix's opportunities in the sports industry. One game is a gimmick, but five NFL games mean new subscribers will stay for the long haul.
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The risk lies in viewers' happiness. Any technical difficulties, latency, or outages will prompt NFL viewers on Netflix to make their complaints heard. This is an opportunity and a challenge for Netflix, which needs to prove it is ready for the bright lights of professional football.
For investors, buying Netflix now before football season begins could be the right move. The stock is down more than 26% in the past year as of this writing. Netflix's trailing P/E ratio is also below 30, so the stock is reasonably priced at the moment.
If the five-game deal is a success, the Netflix and NFL partnership could be a substantial step forward in Netflix's quest to remain the most dominant streaming platform and a major new growth engine.
