Live can be a knockout opportunity for Netflix: BofA

Investing.com -- Bank of America analysts view Netflix’s recent live broadcast of the Jake Paul vs. Mike Tyson boxing match as a pivotal moment for the streaming giant. With 60 million households tuning in, 65 million concurrent streams at its peak, and 108 million global live viewers throughout the event, the match became the most-streamed sporting event ever.

Despite technical hiccups, BofA believes the event underscored Netflix’s ability to aggregate massive global reach for live content, signaling its potential to rival or even surpass traditional linear TV viewership.

“Despite the reported technical issues, we see this event as a positive for Netflix’s ambition in live/sports and also as it relates to the company’s ability to drive growth in advertising,” said BofA.

Moreover, they believe the event likely signals to sports leagues and promoters that Netflix (NASDAQ:NFLX ) can deliver significant live audiences, adding a new dimension to its content strategy.

Looking ahead , all eyes are said to be on Netflix’s Christmas Day broadcast of two NFL games, featuring a halftime performance by Beyoncé.

This highly anticipated event is expected to draw a massive audience, further bolstering Netflix’s live programming credentials. Early next year, Netflix will also launch a ten-year contract with WWE’s Raw, marking another strategic move into live content.

BofA says live programming complements Netflix’s growing advertising business, which has reached 70 million monthly active users globally, with over half of new sign-ups in ad-supported tiers.

Analysts believe the combination of live content and high-value ad inventory will drive long-term revenue growth.

BofA reiterated its Buy rating for Netflix and raised its price target to $1,000 from $800 per share, citing positive earnings momentum and growing opportunities in live programming and advertising.

“Supported by its world-class brand, leading global subscriber base, position as an innovator and increased visibility in growth drivers, we believe that Netflix should continue to outperform,” the analysts concluded.

Source: Investing.com