Netflix: First Step Into Major Sports With Christmas NFL Games Isn’t a Needle Mover but Shows Power

The National Football League's announcement that Netflix will be the exclusive home for a total of at least four NFL games over the next three Christmases doesn't affect our $440 fair value estimate. We don't expect significant subscriber benefits from these games, and The Wall Street Journal reported Netflix will pay about $75 million per game, which is not substantial in the context of the firm's annual content spending. However, the NFL's decision to partner with Netflix and highlight the global nature of the streaming rights hints at the value of Netflix's platform and its unparalleled global reach.