Netflix Shares Decline by 41.6% Over the Year, But Company Secures Rights for 2030 World Cup

Netflix has acquired exclusive rights to broadcast the FIFA Men's World Cup 2030 in Spain and Andorra, Bloomberg reports. The deal covers all 104 matches, but its terms are not disclosed in the press release. On Tuesday, Netflix shares rose 0.9% at the opening of trading, reaching $71.26. However, the stock has lost 41.6% over the year, with a week remaining before the third-quarter earnings report. The tournament is hosted by Spain, Portugal, and Morocco. Some matches, including all of Spain's games, the semifinals, and the final, will be broadcast for free through the national broadcaster. Media rights agreements for the 2030 World Cup in other regions, including the USA, have not yet been announced.

For Netflix, this is a continuation of its expansion into live sports broadcasting. The service already has NFL games and rights to broadcast the next two Women's World Cups in the USA. Now, one of the most popular tournaments in Spain and Andorra has been added to its portfolio. The financial impact of the deal is difficult to assess for now, as neither the cost nor the payment terms have been disclosed. Amid this, the stock's performance remains weak. Over the week, the stock gained 3.69%, lost 7.98% over the month, decreased by 30.96% over six months, and fell by 41.57% over the year. The 52-week range was from $65.08 to $124.86.

Netflix will release its third-quarter report on October 20, and the market will assess whether sports content can support subscribers and revenue. The news itself does not change the annual trend but adds an argument to the discussion about growth prospects. It is still unknown whether the investment in the 2030 World Cup rights will pay off and how it will affect subscription costs or the advertising model. Further stock reaction depends on quarterly results and management comments.