Netflix reversed its subscriber slide and is now showing off its sports content library with its third-quarter earnings release.

The streaming leader brought in 2.4 million subscribers to reach 223 million globally, rebounding from losses in the previous two quarters.

• Q3 revenue hit $7.93 billion, a 0.6% dip from the previous quarter, but a 5.9% year-over-year rise.
• Net income was $1.4 billion, holding steady with both the previous quarter and the same period last year.
• The company projected more strong subscriber growth in Q4 to 227.6 million and revenue of $7.78 billion.

The company compared itself to rivals Disney and Amazon in a letter to shareholders:

“Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard — we estimate they are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix’s $5 to $6 billion annual operating profit.”

The company’s stock was up over 13% on Wednesday.

Non-Live Sports

The company still doesn’t offer live sports programming, but it trumpeted its sports content in a trailer online prior to the NBA’s season-opening games on Tuesday.

Its “Drive to Survive” show on Formula 1 is credited with catalyzing the league’s skyrocketing popularity, but Netflix’s growing library includes shows about the 2008 men’s Olympic basketball team, Naomi Osaka, Bill Russell, Neymar, and many more.

The National Hockey League could pay off a major pandemic debt — which could have major implications for its salary cap.

The cap was decoupled from league revenues when the pandemic forced teams to play in empty arenas, but could rise significantly next year if revenues reach high enough for players to pay off around $1 billion in accumulated debts to owners.

“We believe that there is a good probability that the escrow will be paid off this season,” said NHL commissioner Gary Bettman on Tuesday. “It may not be, but it’s going to be close we think, which means the flat cap will be replaced by a bigger increase.”

• Bettman said the league notched around $5.4 billion in hockey-related revenue last season, beating its own projections by around $500 million.
• The cap reached $82.5 million after increasing by $1 million, its first increase in three years. 
• It will rise by that amount again next year if the players are still in debt. Otherwise it could go up by as much as $4 million.

Lack of Diversity

The NHL released its first diversity and inclusion report on Tuesday, which revealed a league and staff dominated by people of European descent.

Team players and employees are 83.6% white, with the remainder split mostly between Asian (4.2%), Black (3.7%), and Hispanic (3.7%) people.

Full-time internships and fellowships showed a similar, if less stark trend, at 65.4% white, as did human resources departments, which were 69.6% white.

Paris Saint-Germain superstar Lionel Messi has enjoyed monumental success on the pitch — and now he’s looking to secure some wins in venture capital. 

The seven-time Ballon d’Or award winner has launched a holding company that will target investments in sports, media, and technology. 

Play Time Sports-Tech is based in California and will look to invest in “stage agnostic” opportunities, including helping soccer-focused tech startups get off the ground. 

• Play Time will be run by Graph Ventures partner Razmig Hovaghimian.
• The firm has already invested in Matchday.com — a soccer-focused gaming venture.
• Play Time also holds a stake in soccer collectibles marketplace AC Momento. 

Messi — who has rotated in and out of the No. 1 spot on Forbes’ list of highest-paid soccer players since 2014 with Cristiano Ronaldo — is the second-highest-paid player in the world for the 2022-23 season. Messi is expected to earn $110 million this season, including endorsements. 

Last Go Round 

When asked if the 2022 FIFA World Cup in Qatar would be his last, Messi said, “Yes, definitely yes.” Qatar — whose population was roughly 3 million as of Oct. 14 — has sold 2.9 million tickets, per FIFA president Gianni Infantino.

Global Sport

| by Owen Poindexter

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