Netflix CEO Ted Sarandos believes that his business strategy does not include sports in the future.
Netflix isn’t planning to add live sports to the platform in the future, but it does plan on more ad-supported subscription tiers to boost its revenue.
This is stated by Ted Sarandos , the co-executive director of the streaming service, in a report published by Variety that indicates the future strategy of the platform.
Netflix doesn’t think about sports
Sarandos points out that Netflix has no intention of adding live sports or exclusive matches to its catalog because “they are for a pay TV model, not for a streaming service.”
According to the coCEO, a streaming service can become “twice as big without sports”.
“We’re not anti-sports, we’re just pro-profit,” Sarandos says.
His claim goes against the industry. Disney has a huge catalog of live sports on Star+ , as well as major international leagues. Amazon Prime Video maintains the NFL’s Thursday Night Football, for which it pays $1 billion a year. Even Apple TV will have all the MLS games on its programming for 10 years from 2023 without geographical restrictions.
And where is the money?
CNBC reports that Netflix is considering further increasing the levels with advertising it already has. Recall that it recently launched a $7 plan as a basic plan with ads.
“We currently have multiple levels of subscription, so it’s likely that we’ll have multiple levels of announcements over time, but there’s nothing to say on that yet,” Sarandos said. “And the product itself will evolve, I suspect, dramatically, but slowly… gradually.”
Netflix , facing a rising wave of streaming competitors, lost 1.7 million subscribers in the first half of 2022 before rebounding in the third quarter with a net gain of 2.4 million paid subscribers to reach 223.1 million worldwide at the end of September.