Netflix's chief content officer Ted Sarandos has not ruled out the streaming giant getting into the live sports streaming scene, but says that current conditions makes it unlikely in the short term.
Live sports broadcasting, particularly in Australia, remains the last bastion of the old guard - free-to-air networks and Foxtel are paying exorbitant licensing fees to secure exclusive rights to these broadcasts. Foxtel, in particular, relies on exclusivity deals for sporting events as a main draw for subscribers that are increasingly price conscious following the debut of services like Netflix and Stan (which offer sub $10 subscriptions - compared to $25 for the most basic Foxtel package).
But while the likes of Netflix and Stan are cheaper, the only way to watch certain sports live is still through Foxtel's sports channels, at a minimum monthly cost of $50 for subscribers to access. This is perhaps the last and most difficult to cut cord for consumers in the age of cord-cutting.
Which is why Netflix's CCO Sarandos remarks at a recent conference hosted by research firm MoffettNathanson may be startling to the likes of Foxtel, showing that Netflix's ambitions extend beyond just TV shows and movies. When asked about the possibility of one day Netflix getting into the live sports business, Sarandos refused to rule out anything, but at the same time, pointed out the difficulties in getting involved at present.
“I will never say never, but I would say that where we sit today I don’t think the on-demandness to sports is enough of an addition to the value proposition to change,” said Sarandos said. Speaking mainly in regards to sporting leagues in the US, Sarandos added, “I think the leagues have tremendous leverage in those deals, so it’s not like we’re going to get in and de-leverage the leagues.”
Sarandos says the high cost of getting into live sports is not "exciting" for him at the moment. "Not to say that it wouldn’t someday down the road someday make sense," says Sarandos.
