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Netflix Fights Back: Shares Rebound Amid Live Streaming Challenges

Netflix (NFLX) faced turbulence after its first major foray into live sports broadcasting stumbled over technical glitches.

Jake Paul vs Mike Tyson on Netflix, best stocks to buy, learn a trade

The much-anticipated boxing match between YouTuber-turned-boxer Jake Paul and heavyweight legend Mike Tyson drew 60 million households but was plagued by buffering and streaming disruptions. Complaints flooded social media, with #netflixcrash trending as frustrated viewers voiced their dissatisfaction.

The technical issues have raised questions about Netflix’s readiness to handle live events, especially with the NFL Christmas Day doubleheader just weeks away. Despite the rocky performance, investors remained optimistic. Netflix shares initially dipped but rebounded 2.2% to close near record highs at $842.23 on Monday, reflecting confidence in the company’s ability to capitalize on live programming.

Live Events: A Double-Edged Sword
Live sports represent Netflix’s latest strategy to differentiate itself in an increasingly competitive streaming market. The company recently secured a three-season deal with the NFL, reportedly paying $75 million per Christmas Day game, and has plans to incorporate WWE programming. Friday’s boxing event marked its most ambitious live venture yet, but the technical hiccups underscored the challenges of scaling live broadcasts.

Oppenheimer analyst Jason Helfstein downplayed the glitches, calling the massive viewership a "high-quality problem." Helfstein estimated that the Tyson-Paul fight reached about 150 million global viewers, assuming 2.5 viewers per household—exceeding the record-breaking 124 million U.S. viewers for the 2024 Super Bowl.

With Beyoncé set to headline the halftime show for one of Netflix's Christmas Day NFL games, the company is betting big on live events to attract subscribers. However, the technical issues must be resolved to ensure a seamless viewing experience for these high-stakes broadcasts.

A Balancing Act Between Growth and Valuation
Netflix has been a standout in the streaming wars, with shares surging over 70% year-to-date. The platform's ad-supported tier has grown rapidly, boasting 70 million monthly active users, and its Q3 financial results exceeded Wall Street expectations. However, concerns loom over valuation and long-term growth prospects.

While Netflix’s ad-supported tier represents a promising revenue stream, analysts note that overall engagement levels remain flat year-over-year, signaling potential challenges in sustaining subscriber growth. Moffett Nathanson analyst Robert Fishman expressed skepticism, highlighting the company’s slowing revenue growth, projected to decline from 15% in 2024 to 11%-13% in 2025.

Despite these headwinds, Netflix’s ability to draw massive audiences—like the 60 million households for the Tyson-Paul fight—underscores its potential to dominate live programming. As the platform fine-tunes its live streaming capabilities, the NFL Christmas Day games could mark a turning point, proving whether Netflix can truly compete in the lucrative live sports market.

Netflix’s experiment with live events is a calculated risk. If successful, it could redefine its business model and secure its position as a leader not just in streaming, but in live entertainment. For now, investors are watching closely as Netflix races to fix the glitches and deliver a flawless Christmas Day spectacle.


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