Netflix seeks a production partner for its Christmas NFL games.

• According to sources, Netflix is in talks with broadcasters to produce the NFL games it agreed to stream on Christmas Day.
• According to sources, Netflix has contacted the broadcasters that air NFL games, including ESPN, NBCUniversal, and CBS Sports.
• Netflix is set to host its first live sports event with two NFL games scheduled for 2024, followed by at least one more in the future.

is trying to get ready for some football.

Netflix is seeking a broadcasting partner to produce NFL games for Christmas Day this year, according to sources. The streaming giant will air two games on Christmas Day, with plans for at least one matchup in both 2025 and 2026.

Netflix is expanding into traditional live sports as part of its efforts to increase its advertising revenue. The company recently signed a deal with WWE for its live "Raw" events, but this was classified as "sports entertainment." However, Netflix's upcoming deal for Christmas NFL games does not include a full production team, leaving the streamer in need of assistance.

According to sources, Netflix has contacted the broadcasters that air NFL games, including ESPN, NBCUniversal, and CBS Sports. However, Disney will not produce the games because of its existing college football obligations on the same day, two sources revealed.

Netflix's options may be somewhat limited as in-depth discussions haven't begun with the other broadcasters.

Some individuals expressed concern that adding more games for Netflix could be a burden since Fox and CBS Sports already produce games in different regions each week.

There's also competition to consider.

Netflix has inked a deal with NBCUniversal to produce its NFL games before its first season of "Thursday Night Football" in 2022, but there may be more resistance among current NFL partners to help out Netflix, as it could be auditioning as a future long-term media rights partner for NFL games in place of a legacy media company, such as Paramount or NBC.

After the 2029-30 season, the NFL has the option to choose new media partners.

No representatives from Netflix, the NFL, NBCUniversal, CBS, ESPN, or Fox responded to requests for comment.

Welcoming Netflix

Netflix unveiled its plans to enter the NFL in May, during its Upfront presentation, in an attempt to attract advertisers to its growing ad-supported platform. The company announced last month that it has 40 million global active users for its advertising tier, which costs $6.99 per month in the U.S. and was launched in November 2022.

In May, co-CEO Ted Sarandos stated on CNBC that the NFL was a suitable match for Netflix because it aligned with the streamer's event strategy, effectively allowing Netflix to dominate the day. According to CNBC, Netflix will pay the NFL approximately $75 million per game.

Netflix presents an opportunity for the NFL to expand its global reach among a younger audience, while also laying the foundation for future involvement in bidding on a broader selection of games.

In 2021, the NFL secured long-term agreements with Disney, Paramount, NBCUniversal, Fox, and Amazon for its top five packages of games.

Broadcasters may be convinced to strike a deal with Netflix despite some trepidation among current media partners due to league pressure and a hefty paycheck, according to sources.

"According to Shirin Malkani, co-chair of the sports industry group at Perkins Coie, there are not many players in the industry who can perform at a level that is trustworthy when launching as a new partner with a league as significant as the NBA or the NFL. Additionally, Malkani stated that the production side can be a significant challenge for streaming partners."

Netflix and the league are considering a partnership similar to Amazon's Prime Video and Comcast's NBC Sports for "Thursday Night Football" games.

In 2023, Amazon appointed one of its own employees, Mark Teitelman, as the lead game producer for "Thursday Night Football," while NBC Sports' Fred Gaudelli produced the 2022 season.

While Amazon produces pregame, halftime, and postgame coverage, NBC Sports is responsible for the extensive production work that goes into an NFL game and employs the majority of those workers.

According to sources, Netflix is seeking a partner similar to its current one.

If a deal cannot be reached with one of the incumbents, Netflix may explore other possibilities with third-party producers. Endeavor Group Holdings' IMG is the production partner for Major League Soccer, which is available through Netflix.

"Jonathan Miller, CEO of Integrated Media, stated that it is challenging to produce an NFL game at a level that viewers are accustomed to, which is highly produced and of a very high standard. However, there are several alternatives available that can achieve this without Netflix needing a fully staffed sports division."

Shifting to streaming

NFL games were first obtained exclusively by Amazon Prime Video as the league sought to expand its media partners and increase its streaming options to attract a broader audience.

In 2021, Amazon secured the rights to broadcast "Thursday Night Football" as part of its 11-year media rights agreement with the NFL, worth over $100 billion, which includes an opt-out clause after seven years.

The NFL is expected to exercise the clause and seek new partners due to the recent NBA media rights negotiations that are attracting high bids from various media companies.

The NFL has signed a deal, and now streaming services for Comcast, ESPN, Paramount, and YouTube TV are simultaneously streaming games, with some games being hosted exclusively.

The NFL has been instrumental in keeping the traditional TV bundle together and has also contributed to the growth of streaming services, as evidenced by NBCUniversal's April announcement that its exclusive NFL Wild Card game on Peacock helped attract and retain more customers than anticipated.

The league has actively advocated for expanding its streaming partnerships to increase its viewership.

The deal with Netflix to stream Christmas Day games was based on the idea that it would be a good fit for the holiday season.

During the Sunday Ticket rights negotiations, NFL Commissioner Roger Goodell informed CNBC that the longstanding package exclusively provided by DirecTV would transition to streaming.

At that time, Goodell stated that he believed it was the best option for consumers.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.