The New NBA In-Season Tournament is Netflix’s Perfect Opportunity to Get into Sports Streaming
The company has resisted live sports streaming for years, but the NBA’s in-season tournament could be exactly what it needs to get its foot in the door.
Everything is aligning for the NBA to have a major presence in streaming in its next broadcasting agreement. Apple TV+, Max, Peacock and Prime Video are all potential streaming partners for the league, but what about Netflix, which at 247.15 million global users is the world’s largest streaming service by far?
- Netflix may have interest in the NBA’s new in-season tournament.
- The streamer has discussed creating a new docuseries about the tournament to help promote it.
- An exclusive package of event-based games appeals to Netflix more than simply getting a percentage of standard NBA regular season contests.
Does Netflix Want the NBA or Not?
To say that Netflix executives have been cautious about getting into live sports is an understatement. In December of 2022, company co-CEO Ted Sarandos seemed to throw dirt on the idea of Netflix investing in top sports once again, saying its number crunchers simply hadn’t found a way to make them profitable.
But the streamer’s actions this year have not aligned with Sarandos’ words. Just this week, in fact, Netflix will host its first live sporting event in the Netflix Cup, a golf tournament that will feature PGA Tour players as well as Formula One drivers, in an effort to cross-promote Netflix shows “Full Swing” and “Formula One: Drive to Survive.” The company has also reportedly had discussions in recent months about hosting a live boxing match with YouTuber Jake Paul as the headlining event.
Now, a report from Sports Business Journal's John Ourand indicates that Netflix might be ready to make a meaningful investment in a top sports league. Specifically, Netflix could be a player for the streaming rights to the NBA’s in-season tournament, which is being held for the first time in the 2023-24 season.
Why is Netflix Expressing Interest in the NBA In-Season Tournament?
The reason Netflix could make a meaningful pursuit of the NBA’s in-season tournament after such reluctance to get into live sports is that it would get exclusive rights to an NBA event. The streamer doesn’t seem interested in grabbing a slice of the NBA’s regular season broadcasting rights like TNT or ESPN currently carries; it wants the exclusivity of a big event if it’s going to make such a large monetary investment. The league has been interested in offering a streaming-only package for months, but there has been little clarity on what that might look like until recently.
SBJ also reports that Netflix has talked about creating a new docuseries based on the in-season tournament that will help it promote the games, similar to “Drive to Survive” and “Full Swing.” The tournament has been a success for the league from a ratings standpoint so far; ESPN is seeing 55% higher viewership versus a comparable window in 2022 during tournament games, and NBA League Pass is seeing 42% higher viewership in tournament games.
Netflix will surely have competition for this package. Prime Video is expected to make a major run at NBA rights, and essentially every media company with a streaming service will at least be in contact with the league before its current contracts expire after 2024-25. Still, Netflix has made streaming profitable in a way that no other company has, so if it really wants the NBA there’s a good shot it can make a successful bid.
Netflix has been incredibly deliberate when it comes to investing in live sporting opportunities. While the streamer has been more than willing to get involved with documentaries like its 2023 FIFA Women's World Cup series which is currently in production, offering actual sports events has been a no-go. The Netflix Cup will change that this week, and it could foretell an even wider pursuit of sports rights by Netflix, specifically to get its hands on the NBA’s in-season tournament.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.