Netflix buys barstool sports for Netflix Sports Network
We feel as Netflix’s strategy to combat traditional media networks grow, more content than just binge worthy tv shows will be needed. Disney once bought ESPN to give itself the edge on sports entertainment/news. In order for Netflix to justify larger price increases, more media content options need to be available from Netflix, such as sports & live news. The largest players in the media space have come together to build Hulu. A once subpar competitor to Netflix, Hulu is become a larger threat with its $40 Live TV package that is gaining consumers and creating cord cutters.
Disney is purchasing Fox & will hold A 60% ownership stake of Hulu with NBC holding the remaining 30% & Time Warner (“ATT”) 10%. The rivalry amongst Netflix and Disney will continue over the next decade and both continue to enter each other’s spaces. (Disney becoming more competitive in streaming, while Netflix continues to produce more top tier box office movies.)
For probably between $50 & 100 million Netflix could purchase Barstool Sports and bring a new form of sports entertainment to the masses. If Netflix has any desire to enter the sports entertainment space this acquisition creates an immediate competitor toward Disney’s ESPN brand. The sports market is likely to grow in the coming years with the expansion of sports betting. Netflix could also grow its Barstool network to be the spot for sports gamblers to check out. Creating shows around sports, betting and live sports entertainment would expand Netflix’s content categories from just traditional tv shows & movies. Barstool sports has a large social media presence and could capture some audience that may not currently be A Netflix subscriber.
I would not be surprised if Netflix expanded into soccer broadcasting to deliver global growth for its company in the future. Although soccer is not popular in the US. It is the most popular sport in the world. Upon entering live sports entertainment we could also see Netflix start a 24/7 news network. Netflix could bring in a few big names newscasters or celebrity individuals for this news network & tap into their huge subscriber base.