Alleging patent infringement connected to virtual machine operations, Netflix (NFLX, Financials) has sued Broadcom’s (AVGO, Financials) VMware. Filed in the U.S. District Court for the Northern District of California, the lawsuit focuses on allegations that VMware’s vSphere program violates Netflix’s technology.
Part of a larger legal dispute starting in 2018, Broadcom’s individual case against Netflix in the United States is scheduled for trial in mid-2025. Neither company has commented on the continuous conflicts.
This move comes as Netflix attempts to broaden its offerings, including initiatives into live sports streaming and improved original content.
Netflix will broadcast two NFL games for the first time on Dec. 25. The pairings are the Baltimore Ravens against the Houston Texans and the Kansas City Chiefs against the Pittsburgh Steelers. With an eye on new members and lower attrition, this action marks Netflix’s debut into live sports programming.
Netflix has also obtained special U.S. rights to broadcast the FIFA Women’s World Cups for 2027 and 2031. With this calculated purchase, Netflix’s subscriber count should grow and its brand reputation in sports broadcasting should be strengthened.
Including a 10-year contract with WWE and intent to broadcast NFL games and the FIFA Women’s World Cup, Netflix is expanding its live sports reach. Aiming to generate high-buzz, large-audience events, this change marks a major break from its past posture on live sports.
Netflix has been aggressively spending in infrastructure to accommodate live eventsincluding bandwidth and server capacityin preparation for live sports broadcasting. This tracks past live events like the Jake Paul/ Mike Tyson bout, drawing over 108 million views globally.
This article first appeared on GuruFocus.
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