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One way to prevent people from canceling a streaming subscription: go big on live events and sports.
And that's what Netflix (NFLX) and Amazon (AMZN) are doing in their ongoing battle with struggling traditional TV players such as Disney (DIS) and Comcast (CMCSA).
"It's [easier] to cancel streaming than it is a cable service. You push a button on the platform and you're out," Horizon Sports and Experiences co-CEO David Levy told Yahoo Finance executive editor Brian Sozzi on the Opening Bid podcast (see video above; listen in below).
Levy has a longstanding career in cutting-edge television. In 1987, he was hired as one of the first 200 employees at Turner Broadcasting, where he spent 33 years and ended as the network's president.
Preventing churn ultimately requires providing content that keeps customers around. Noting that Amazon streaming introduced Thursday Night Football, which ran on an 18-week schedule, Levy added, "If you want to watch Thursday Night Football, you're not canceling your subscription."
Netflix, a direct competitor, began offering WWE programming last month. That's on top of last November's fight between Mike Tyson and Jake Paul, which drew 64 million viewers.
Netflix is now rumored to be eyeing rights deals for F1 and UFC. The NFL could opt out of its TV rights deal with everyone but Disney in 2028, which could attract interest from the big-spending streaming platforms.
"In order to continue to grow their sponsorship, they have to get into the sports business," said Levy. "They are adding new subscribers because Wall Street is demanding that they continue to grow."
Sports content also has a major advantage over its scripted and unscripted streaming service siblings. "[With scripted programs] you don't know whether it's a success or not," he said. "You know sports is going to be successful. They have built in fan bases."
PWC recently estimated that by 2025, more than 90 million US viewers would stream a sports event at least once per month, a substantial increase from 2021's 57 million streaming viewership results.
"In the end, our view remains unchanged that Netflix has won the global streaming race as evidenced by 2024 results/raised 2025 guidance (especially relative to its streaming peers' results)," Pivotal Research analyst Jeff Wlodarczak wrote in a recent note. "This is what, in our opinion, winning looks like."
