May 24, 2022

Netflix & Live Sports? Ted Sarandos Revenue & Profit Stream F1 – Deadline


Netflix long has been asked whether it eventually would move into live sports. Ted Sarandos, co-CEO of the streamer, revealed Tuesday during the company’s first-quarter earnings call, what it would need to make that happen.

He said he wasn’t so sure that it could add a “big profit stream” with the addition of live sports. “I’m not saying that we’ll never do sports, but we’ll have to see a path to growing a big revenue stream and a great profit stream with it,” he said.

The comments come as the streamer’s interest in sports-adjacent content grows. It has had success with the Formula 1: Drive To Survive docuseries – credited with growing interest in the motorsport in the U.S. as it recently premiered its fourth season. It also has similar projects around NASCAR driver Bubba Wallace and golf’s PGA Tour.

Sarandos’ co-CEO Reed Hastings told German newspaper Der Spiegel that it would consider buying the rights to F1. However, he also pointed out that it would require control in order to make that level of investment for its subscribers.

Instead, Sarandos pointed out that it would continue to look at sports-adjacent programming and documentary content.

He also highlighted Netflix’s focus on gaming, rather than live sports, at this current juncture, an area the streamer is able to have more rights and ownership.

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“We expand our content verticals constantly,” Sarandos said. “For us, look at games as a great example of adding something brand new to the service, something new for our members to enjoy. We’re going down the game path because it fits us really nicely, our ability to tell stories and build worlds are very consistent with our existing skillset and culture and we think we can build a big revenue and profit stream by adding games.”