Football, wrestling, and immersive experiences: Netflix has expanded beyond its usual scripted and reality TV offerings this year.
Last quarter, Netflix reported a record 269.9 million subscribers, significantly outpacing streaming rivals like Disney+, Peacock, and Max (owned by Warner Bros. Discovery, CNN’s parent company). This surge was partly due to Netflix’s efforts to push users who share passwords to create their own accounts.
However, the boost from the password-sharing crackdown might be temporary. Netflix recently announced it would stop sharing its quarterly subscriber numbers starting in 2025.
In the ongoing battle for viewer attention against traditional media companies and newer platforms like
YouTube and TikTok, Netflix has ventured into live sports programming and immersive experiences in the past two months.
With its recent move into advertising, Netflix is starting to resemble the traditional media companies it aims to disrupt, according to Macquarie analyst Tim Nollen.
“Netflix is becoming what the old broadcasters were at their peak, but in a more sustainable, long-term way,” he said.
In May, Netflix revealed that it has 40 million monthly active users on its new ad-supported subscription tier, up from 23 million in January.
Netflix will report second-quarter earnings on Thursday after the bell, which will likely shed more light on its strategy.
Netflix’s early evolution stages
In May, Netflix announced its biggest sports deal yet: a three-year agreement to broadcast NFL Christmas Day games. Starting this year, Netflix will globally air two NFL games on the holiday. In 2025 and 2026, Netflix will stream at least one holiday game.
“Netflix is now in live sports,” Nollen said. “This means Netflix might be the only place to watch those two Christmas Day games, potentially attracting more subscribers.”
Broadcasting football games has proven effective for boosting subscriber numbers: In January, Peacock, NBCUniversal’s streaming service, saw a 2.8 million sign-up spike in the three days leading up to its exclusive NFL playoff game broadcast.
According to Peacock, the event marked “the single biggest subscriber acquisition moment ever measured.”
Earlier this year, Netflix also announced a major move into sports programming: a 10-year deal to air “WWE Raw” live, worth over $5 billion.
But Netflix isn’t just expanding into sports. Last month, the company announced plans to open two massive entertainment venues called Netflix Houses.
These “experiential” complexes, located in former department stores at Dallas Galleria and King of Prussia mall (near Philadelphia), will each span over 100,000 square feet and feature events, themed gift shops, and restaurants. Both are set to open in 2025.
While these complexes won’t match the scale of Disney’s or Universal’s global theme parks, Seaport analyst David Joyce said they are designed to boost brand loyalty.
“They should help retain customers and keep them within the Netflix ecosystem, maintaining their subscriptions for longer,” he said.
