One Compelling Reason to Buy Netflix Stock

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By Jacob Maslow

netflix hq, los gatos ca
The Netflix world headquarters building located in Los Gatos.

If Netflix (NASDAQ:NFLX) is serious about streamed entertainment media, it should definitely get into sports streaming. This is crucial because according to recent market studies, more and more consumers are using their mobile devices to access sports entertainment. This development has two very important implications.

First, the obvious one. It is obvious that streamed entertainment companies should look into the tremendous growth potential of mobile entertainment content consumption. The reason for this is that smartphones are getting bigger and bigger as evidenced by the Apple iPhone 6. The form factor for the smartphone space is now going closer to tablet size. The tablet market, on the other hand, is leaning towards a smaller form factor. There is bound to be a happy medium in between. With that larger screen in place, expect the number of Americans consuming sports content to increase dramatically. Watching sports entertainment on mobile screens is more convenient. Plus, this way of consuming sports content enables Americans to enjoy great sports content regardless of how busy they are. As the form factor of mobile devices change to allow for a wider range of entertainment fare, expect more and more consumers to prefer watching sports on a mobile screen-whether it be a phone or tablet.

The second implication of this trend is that the extremely expensive sports broadcasting agreements with sports associations like the NBA and the NFL have to include mobile device access. Otherwise, the market share for traditional broadcasting might suffer as more and more Americans prefer a mobile content consumption platform for their sports entertainment.

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