Netflix Looks to Hit “Dingers” of Checks with New MLB Rights (Sup, ESPN)...

Oh, I’m sorry, you thought the House of Mouse was the only one splurging cash everywhere? Apparently not. Netflix is reportedly in talks to snag streaming rights for Major League Baseball’s Home Run Derby… a.k.a., the annual July spectacle where hitters take BP in front of 40,000 screaming fans and 12 guys in MLB polos who still think OPS is a fad stat. 

(Source: Giphy) 

The “just the tip” deal talk comes after ESPN walked away from its seven-year, $550M/year contract with MLB, a package that included 30 regular season games and the Derby itself. Disney’s sports arm decided it would rather save the cash than keep airing a contest that’s basically “dingers with a time limit”... which is telling, since ESPN will still happily pay Stephen A. Smith to argue with himself for three hours a day.

(Source: MSN) 

For Netflix, this is another brick in its slowly expanding live sports wall. The streamer already has NFL Christmas games and WWE Monday Night Raw lined up. Add the Derby, and you’ve got a content slate that’s one UFC license away from turning Netflix into the Uncle Rico of sports broadcasting… doesn’t show up often, but when it does, the party gets weird. 

The catch though, is that Netflix isn’t the only bidder. Apple TV and Comcast’s NBC are all three circling the package like Terry McGuire circles money. And MLB, never one to turn down a chance to overcomplicate a deal, is reportedly planning to split the rights between multiple players. Translation: prepare for a Home Run Derby where the pregame show is on one service, the first round is on another, and the final is geo-locked behind your cousin’s cable login.

(Source: Giphy) 

Now obviously, from a market perspective, Netflix’s push makes sense… live sports are one of the last things people still watch in real time, which makes advertisers salivate. But it’s also a cost sinkhole if you’re not careful. ESPN’s exit was basically a neon sign reading: “We’ve run the math, and this is a break-even at best.” Netflix’s counter feels like they’ve ran the numbers on the vibes, and it feels fun. Sounds legit. 

What’s even more interesting too, is that according to our boys at Stocktwits, retail sentiment stayed “bearish” despite the bump, which says a lot about investor skepticism. Sure, sports can boost engagement… or it can be like buying a boat: thrilling at first, then mostly just expensive to park.

(Source: Giphy) 

Meaning, if Netflix lands it, expect the first season to be packed with player mic-ups, mid-derby docu-series teasers, and at least one outlandish algo-generated stat like “Projected Exit Velocity of the Emotional Arc” LOL. Of course, we’ll see how this goes especially as more details come out… but for now, keep your eyes on Netflix and the other bidders. This could get interesting. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Netflix, Apple, and Disney as mentioned in the article.