Who will win Mike Tyson vs. Jake Paul? It might be Netflix.
The boxing match on Friday night between Mike Tyson and Jake Paul has generated a huge amount of global interest based on social media trends and Google search data.
The spotlight for investors will be on Netflix (NASDAQ:NFLX), which has the exclusive broadcast rights to the event. Notably, the fight is available to all of Netflix’s (NFLX) +280 million subscribers for no additional fee, which is a drastic change for consumers from paying a premium on a service like HBO (T).
J.P. Morgan thinks the Tyson-Paul fight could be the most watched boxing match ever due to the ease of access and NFLX’s large global subscriber base. The firm expects to be a Q4 positive for Netflix (NFLX) on the earnings front, with incremental ad tier subscribers, total viewers, and sales all getting a boost.
The Tyson-Paul fight is widely considered by analysts a milestone moment for Netflix (NFLX) as it looks for a profitable strategy with live programming.
The sports betting sector also has a lot to gain with the high-profile fight. “I expect Tyson vs. Paul to be the most-bet-on boxing match in BetMGM history,” stated BetMGM (MGM) (OTCPK:GMVHF) senior trader Alex Rella. “This is the rare fight that transcends different demographics: Tyson supporters, old-school boxing fans that may have tuned out in recent years, Jake Paul haters and casual sports fans that want to be included in the conversation,” he noted.
In general, the sportsbooks have an unbalanced amount of money from the nostalgic public on Mike Tyson, which means that they are rooting for Jake Paul to win. The total amount of bet is expected to be enough to move the Q4 earnings meter for DraftKings (DKNG) and FanDuel (FLUT), depending upon how the prop bets and parlays play out.
Shares of Netflix (NFXL) were down 2.2% in Friday morning trading.