The recent sell-off of Netflix shares continued on Friday due to concerns over subscriber growth. Stock in the streaming giant dropped 8.5 percent on Thursday following warnings from MoffettNathanson research analyst Robert Fishman about the potential saturation of turning password-borrowers into paying customers.
On Friday, Netflix shares closed down 1.7 percent at $891.11, recovering from an intra-day low of $858.63. However, this was a significant decline from the record high of $1,064.50 reached in February.
The sell-off was triggered by comments made by Netflix CFO Spence Neumann at the Morgan Stanley conference, where he discussed the company’s approach to live sports rights. Neumann indicated that Netflix would focus on big event sports like boxing specials, the Netflix Cup match-play golf tournament, NFL games on Christmas Day, and WWE wrestling, rather than bidding for regular or full seasons of sports rights.
Despite speculation about Netflix expanding into live TV sports rights, Neumann emphasized that the company would prioritize mega sporting events that align with their entertainment value and member acquisition goals. He mentioned that Netflix would not pursue broader sports rights packages unless they made financial and business sense.
Netflix has also been leveraging their expertise in sports documentaries to enhance their live sports programming. The streaming service recently acquired exclusive U.S. streaming rights to the 2027 and 2031 editions of the FIFA Women’s World Cup and plans to develop additional programming and studio shows to complement the live matches.
Overall, the sell-off of Netflix shares reflects concerns about subscriber growth and the company’s strategic focus on big event sports rather than broader sports rights packages. With the potential for higher subscription pricing in the future, Netflix’s approach to live sports programming will continue to be closely monitored by investors.
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