Question
Acquiring sports rights, such as Formula 1 or FIFA, could significantly contribute to Netflix's growth in Europe and Asia. These sports have a massive following in these regions, and securing broadcasting rights would attract a large number of new subscribers. Additionally, it would diversify Netflix's content offering, making it more appealing to a broader audience. For instance, Formula 1 has seen a resurgence in popularity due to Netflix's docuseries, indicating the potential success of such a strategy. Furthermore, if FIFA's own streaming service does not succeed, Netflix could be in a prime position to acquire these rights, further boosting its subscriber base.
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A lower-cost ad-supported tier. Netflix could appeal to price-conscious consumers and potentially offset $4 billion in lost revenue with ad sponsors. To put it in perspective, Roku makes something like $40+ monthly revenue per user with ads compared to Netflix's $14 from subscriptions. If Netflix does this, it could be ready by 2023 or 2024. Sports rights. Two of the growth markets Netflix could win over are Europe and Asia. So Netflix could pursue the rights to a popular European sports league, like Formula 1 or FIFA. FIFA just launched its own streaming service FIFA+, so Netflix will probably pursue Formula 1 first, given the fact that its popular docuseries on the sport reignited the sport's popularity on social media and in the US. Let's say Netflix is able to regain its stock momentum, and in a year or two from now, FIFA+ ends up a failed experiment; Netflix could try to be first in line to buy it. Video games. The other growth market Netflix has is in Asia, so Netflix could do...
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