• Netflix had a blowout quarter, helped by live sports events.
• But Netflix insists it won't break the bank with sports.
• Netflix sees sports as part of live programming, which benefits its ad growth.

Netflix just delivered another blockbuster quarter, helped by record-breaking sporting events. But the streamer was quick to tamp down speculation that it'll charge headlong into big (AKA pricey) sports deals.

Netflix highlighted live sports events in ticking off the strengths of the fourth quarter. It mentioned the Jake Paul-Mike Tyson bout, which it called the most-streamed sporting event ever, and the NFL Christmas Day games, which it said were the two most streamed NFL games in history. Netflix just began a big partnership with the WWE and got exclusive US rights to the FIFA Women's World Cup for 2027 and 2031.

Many analysts would like Netflix to add more sports as they become available, and sports-related questions were prominent on Tuesday's earnings call.

"We believe NFLX would benefit from expanding its sports portfolio but note few US sports rights are up for renewal over the next few years," Citi analysts wrote in a recent note.

The NBA is tied up for the next 11 years, and the NFL signed its 11-year deal in 2021. ESPN's UFC rights are coming up for grabs in 2025, though, and could look more attractive. That's especially true after the Paul-Tyson fight.

Netflix execs were quick to emphasize Tuesday that they're not changing their strategy around sports. They said they plan to keep treating it as part of its live programming, which includes things like "The Roast of Tom Brady."

Live programming — sports especially — can create a sense of urgency that can help fuel Netflix's ads business. Netflix is counting on ads to help it accelerate in 2025 and beyond.

That said, Netflix doesn't want to give the impression it's giving up on cost discipline. With the cost of live sports skyrocketing, Netflix underscored in its shareholder letter that its live programming would "likely be a small percentage of our total view hours and content expense." Netflix has also expressed aversion to renting versus owning its entertainment.

That could be music to the ears of some TV networks. They are being squeezed by the ever-increasing cost of live sports rights and are increasingly outbid by tech giants for them.

"We are constantly trying to broaden our programming, and live is one of those things, and sports is one of those live events," Netflix co-CEO Ted Sarandos said on the call. "But it doesn't really change the economics of full seasons sports being very challenging."

"We're going to be mindful of the bottom line," he added.

Of course, Netflix has been known to change its tune on things before — like ads, password-sharing, and yes, live sports.