Netflix’s latest shareholder letter highlights a strategic focus on "can't-miss" live event programming. Here's how they've made it a priority, why doing enough is key to customer engagement, and what other brands can learn from their approach.

by Edilsa Bueno, Founder at Bueno & Co.

Last week, Netflix released its quarterly shareholder letter. For many, these updates are routine, focused on revenue, financials, and content strategy. But if you were paying close attention, Netflix revealed its hand on how it’s doubling down on live events—a strategy poised to reshape how we consume content. Here’s the story of how Netflix and its competitors are betting on live programming—and what it means for your business.

Prime’s First Foray: A Big Bet on Live Sports

Amazon Prime ventured into live events in 2017 by securing Thursday Night Football (TNF). At the time, many saw it as a bold and risky move. The $50 million Amazon paid to stream 10 games seemed like a significant gamble for a tech company with no prior experience in sports broadcasting. But by 2022, Amazon had committed $1 billion per year to an 11-year contract for exclusive TNF rights—solidifying its position as a key player in live sports streaming.

In the years since, Prime has invested heavily in other live sports, from tennis to the English Premier League. Live sports, often called the 'holy grail' of streaming, drive deeper customer engagement. According to Amazon’s reports, TNF streams average 13 million viewers per game.

However, profitability remains challenging. The high costs of securing live sports rights, combined with production expenses, often outweigh ad revenue. According to an Adweek analysis, even with premium ad slots, “sports streaming economics are a long-term play, requiring significant investment upfront.”

This illustrates a critical point: While live sports drive engagement, the financial payoff isn’t immediate or guaranteed. For Netflix, it reinforced the need to think differently when entering the live event space.

Netflix’s Breaking Point

While Amazon was laying the groundwork for live sports, Netflix faced a crisis of its own. By early 2022, subscriber growth had slowed dramatically. After reaching 222 million subscribers in Q1 2022, Netflix faced fierce competition from Disney+, Hulu, and HBO Max. Its subscriber base shrank by 200,000 in Q2—its first-ever quarterly decline—and Netflix’s stock dropped over 35%.

Rising content costs, coupled with increased churn, forced a strategic pivot. Netflix stopped reporting subscriber growth as a primary metric, instead focusing on profitability and new revenue streams like advertising and password-sharing controls. But it was clear they needed something big to reverse the slide.

Netflix recognized that following Amazon’s playbook wasn’t an option. Live sports were costly and competitive, but the growing demand for exclusive, one-of-a-kind experiences presented an opportunity to innovate.

The Chris Rock Special: Netflix’s Bold Move

Following the infamous Oscar incident with Will Smith, Chris Rock’s first public response became one of the most anticipated pop culture moments of the year. Several platforms, including Hulu and HBO Max, competed for the special, but Netflix secured it with a reported $20 million deal.

Netflix aired the event live in March 2023, a first for the platform. It reportedly attracted over 16 million viewers in its first 30 days, according to Netflix. The high-profile event created urgency and sparked cultural conversations, attracting a broader audience with Netflix gaining an estimated 1.75 million new subscribers in Q1 2023. By the end of the year, Netflix reported 236 million subscribers globally—a 9% increase from the previous year—as customers felt part of something unique and stayed to see what would come next.

Co-CEO Greg Peters described the event as a "strategic experiment," saying: 

“It’s not about doing everything; it’s about creating the moment that drives the conversation.”

By crafting a single, culturally significant moment, Netflix proved it didn’t need the scale of live sports to make an impact. Instead, it leveraged exclusivity and relevance to spark customer interest, strengthen retention, and reassert its dominance in the streaming market, where it now commands up to 40% of global share.

Lessons for Brands: The Power of Doing ‘Enough’

The success of the Chris Rock special propelled Netflix to a leading position in the content arena. As of the fourth quarter of 2024, Netflix reported having 302 million paid subscribers worldwide, marking an increase of approximately 19 million from the previous quarter. This growth underscores Netflix's strategic decision to focus on unique live events rather than the extensive and costly commitments associated with live sports—a path taken by competitors like Amazon Prime and Hulu.

It’s a clear reminder that success doesn’t come from doing everything; it comes from doing 'enough' of the right things. Peters emphasized: "We're not looking to compete in every sport or every event. It's about creating the event that drives the conversation."

For brands, this highlights an essential lesson: the key to engagement isn’t quantity but quality and relevance. By focusing on select, high-impact initiatives, brands can achieve disproportionate results without overextending their resources.

Closing Thoughts: What's Your Enough?

Netflix’s strategy offers a valuable lesson: It’s not about doing everything—it’s about doing enough. Brands often fall into the trap of chasing trends, launching too many initiatives, or trying to appeal to everyone. Netflix shows us the power of focus. By identifying and doubling down on the right opportunities, brands can create lasting impact without spreading themselves too thin.

So, what’s your “enough”? Is it a quarterly product drop that keeps customers excited? A meaningful loyalty program that rewards long-term engagement? A standout marketing campaign that reinforces your values? The most successful brands don’t just fill the calendar with noise. They deliver moments that matter. 

As you plan your next move, ask yourself: What’s the one thing you can do to create meaningful, lasting impact for your customers?

The answer might just be your Chris Rock moment.

Want to learn how doing just enough can make a big impact? Check out our latest podcast on balancing costs and profits.