The co-CEO of Netflix has yet to understand how "renting big sports" can lead to profitability.

Ted Sarandos, co-Chief Executive of Netflix Inc NFLX, stated on Tuesday that he has yet to see a way for live sports on the streaming service to be profitable.

The economics of professional sports, according to Sarandos, are based on the economics of television, and acquiring rights is expensive.

At the UBS Global TMT conference, Sarandos stated, "We haven't seen a profit path to renting large sports today.

competing streaming platforms Both Apple TV+ and Amazon Prime Video have added live professional sporting events after purchasing the Thursday night NFL and major league soccer games, respectively. The Sunday Night Football games that NBCUniversal broadcasts on television are streamed simultaneously via Peacock.