Netflix exploring Peacock add-on, more World Cup-like programming to stem engagement concerns

Netflix could soon be even more aggressive in its pursuit of live sports rights as it fends off streaming competitors.

A new report from the Wall Street Journal depicts nervousness within Netflix around user engagement, or the amount of time each subscriber is spending on the platform. Netflix’s total share of watch time, as shown in Nielsen’s The Gauge chart, has slid in recent months.

WSJ reports that Netflix has explored live channels, which are becoming more popular on YouTube and FAST services from Amazon, Tubi and Roku, as well as deals to ingest other services such as Peacock. These feeds would ideally improve watch time and bolster Netflix’s advertising business.

The idea of Netflix absorbing Peacock has been rumored for a while in media commentary, either as a purchasable add-on, as it is on Prime Video and Apple TV, or as part of Netflix’s potential acquisition of NBCUniversal.

At the same time, the Journal confirmed other recent reports that Netflix is actively exploring bids for the 2030 and 2034 FIFA men’s World Cups. The streamer already owns rights to the women’s World Cups in 2027 and 2031.

The reported concerns at Netflix have been evident in the company’s recent moves. First, in Netflix’s failed pursuit of Warner Bros. Discovery, which spooked investors who believed it signaled internal fears about engagement, which have now been confirmed by the WSJ report. Then, in Netflix’s flurry of deals to add not only video episodes of hit podcasts but soon, also short-form video content by top publishing and editorial brands like Vogue.

These investments in new forms of content clearly seem to be about stealing the thunder from YouTube or even TikTok, where users go down the rabbit hole, one video after another.

But Netflix’s reported pursuit of live programming is more about capturing users’ attention for much longer swaths of time. Two recent data points show how valuable this can be. One is Netflix’s T1 ingestion in France, which allows subscribers in the country to watch the broadcast network live and has seemingly been a success. Here in the U.S., Netflix recently simulcast a Formula 1 race that aired on Apple TV+, and a Netflix executive told Axios the company expects to partner with Apple on additional future races.

Of course, Netflix is not just now realizing it needs sports. Each Monday night, WWE Raw airs. It will broadcast a total of 5 NFL games later this year, adding a Week 1 international game, a Thanksgiving Eve game, and a late-season Saturday game to its NFL Christmas GameDay doubleheader. And it bought a small slice of MLB rights this year, which includes an Opening Day game, the Field of Dreams special, and the Home Run Derby.

If Netflix’s unsuccessful attempt to buy WBD and its slippage relative to streaming competitors are indeed spurring more interest in live programming, sports are undoubtedly the most valuable target. Netflix was already seen as a strong competitor for a larger NFL package as well as other top broadcast rights in the coming years. Now, it could become an even more serious player.