Netflix (NFLX, Financial) just flexed its muscle in the live sports arena, smashing streaming records with its NFL debut on Christmas Day. Over 24 million viewers tuned in for each game, with most opting for Netflix over traditional TV. The Kansas City Chiefs' win over the Pittsburgh Steelers pulled 24.1 million viewers, while the Baltimore Ravens' victory against the Houston Texans, headlined by a Beyoncé halftime show, edged slightly higher at 24.3 million. This marks a new milestone for NFL streaming, surpassing Peacock's previous record of 23 million viewers. Unlike some past missteps in live events, Netflix delivered flawlessly, solidifying its position as a legitimate contender in live sports—a market with enormous potential for growth.
But it wasn't all touchdowns for Netflix. The long-awaited release of Squid Game 2 stumbled out of the gate, leaving fans and critics unimpressed. While the first season was a cultural phenomenon, the sequel's lukewarm reception triggered a stock market bloodbath for companies tied to the series. Shares of Artist Studio and Artist United, both linked to lead actor Lee Jung Jae, tanked by nearly 27% and 24%, respectively. Other partners, like WYSIWYG Studio and Dexter Studios, saw double-digit drops too.
This week's events highlight Netflix's duality: a leader breaking new ground in live sports while facing the unpredictable risks of entertainment-driven ventures. Its NFL success could open lucrative doors, but Squid Game 2 is a sharp reminder of how volatile this space can be. With Squid Game 3 already slated for 2025, Netflix will need to keep balancing ambition with execution. For investors, the takeaway is clear—stay alert, as fortunes here can shift faster than a streaming queue.
