Netflix Inc. (NFLX, Financials) is making another play for live sports, acquiring the rights to broadcast the 2030 World Cup in Spain and Andorra.
The deal will be Netflix’s first broadcast of a major men’s international soccer competition in Spain.
In Spain, each matchday will have a free-to-air game. Additionally, Netflix will provide a national free-to-air channel with a package that includes all of Spain’s matches, including the semifinal and the final.
Financial terms were not announced. The deal is significant since Netflix is rapidly growing a sports portfolio that presently includes the NFL, MLB, WWE, boxing and mixed martial arts.
The World Cup is distinctive. It’s a worldwide event with a unique level of reach and the ability to attract people that may not regularly subscribe for entertainment content.
The big challenge for investors is whether sports can create deeper engagement without creating higher content expenditures.
Netflix has dodged the full-season rights wars that characterize traditional sports broadcasting, instead cherry-picking events and packages.
The 2030 accord signals a wider agenda.
Next, we’ll see if Netflix obtains similar World Cup rights in other areas, and how much live sports will boost ad revenue and customer retention.