November 28, 2024, 10:53 am | Read time: 4 minutes
Streaming giant Netflix is currently facing a class action lawsuit. The reason is massive technical problems with the live stream of a major sporting event. TECHBOOK explains the details.
Jake Paul versus Mike Tyson, an influencer against a former professional athlete. A tried-and-true concept, yet it has now shattered records at Netflix, largely due to Tyson’s renowned status. The boxing match was widely advertised in the run-up to the event. Events like this show fight are intended to further establish Netflix in the areas of sport and live broadcasting – apparently with success. Following the event, the streaming service reported unprecedented viewership numbers. A good 80,000 people attended the event, while more than 100 million watched on their home screens. This achievement crowns the Netflix live event as the most streamed in history, excluding major TV broadcasts. However, a lawsuit has now been filed against Netflix over the Paul vs Tyson boxing match.
Technical glitches with livestream
In general, Netflix has been trying to establish itself on the live market for some time now. This is actually ironic, considering the streaming service’s basic recipe for success. Apparently, Netflix also understands the appeal of live streams, especially in combination with sports. The boxing event was advertised correspondingly prominently months in advance.
In the end, Jake Paul won clearly in eight rounds. The 58-year-old Tyson did not cut a good figure in the ring some 20 years after the end of his career – but that is not the reason for the lawsuit against Netflix. Instead, various users complained about massive technical problems during the broadcast. For some, the quality deteriorated; for others, the stream hitched, and for others, the transmission stopped altogether.
Lawsuit against Netflix over Paul Tyson fight
While some reacted with amusement, the vast majority were at least irritated, if not angry. Some Netflix subscribers now even intend to file a lawsuit against the service. Netflix did respond to the problems, but rather tongue-in-cheek. In a post on X (previously known as Twitter), the provider humorously noted: “The mega boxing event took over social media, smashed records, and even pushed our buffering systems to the limit.”
It seems that the root of the issues was an underestimation of the necessary server capacity. Users commented on this with posts such as: “It has become clear that Netflix should not offer live sporting events on its current platform.” Some also expressed displeasure that the support team did not react appropriately. Instead of apologizing for the problem and looking for a solution, the streaming service has, in some cases, blamed the problem on viewers’ internet connections.
As reported by Variety and others, a Netflix customer from Florida has now filed a lawsuit. He accuses the company of not being sufficiently prepared for the high demand. The lawsuit further contends that Netflix violated its contractual obligations to customers, necessitating compensation for those impacted. The lawsuit is designed as a class action.
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What does the lawsuit mean for Netflix?
Regardless of the lawsuit, Netflix is likely to be thinking about how to proceed with its live-streaming business in the future. It’s widely believed that the streaming behemoth is keen on expanding its presence in the live-streaming arena.
Mark Gurman confirmed this at Threads. According to the Bloomberg reporter, Head of Technology Elizabeth Stone expressed her satisfaction in an internal briefing. It is true that there is room for improvement. However, the stream has been stable for many users, and the figures speak for themselves. According to Gurman, Stone also said: “We don’t want to dismiss the bad experiences of some members and know that we still have room for improvement, but we still consider this event a great success.”
Yet, this sentiment is hardly reflected on social media platforms. Unimpressed, Netflix is already advertising the next live event there. This has sparked considerable scorn in the comments sections. There, you can read comments such as “Netflix, fix yourself first” and “Let’s not forget the bad livestream.” If you take a look at the list of December’s new releases, you will discover two NFL games. Consequently, sports enthusiasts and Netflix subscribers may need to brace for an increasingly fragmented market and potential technical snags ahead.