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21 November 2024

Netflix Hit With $50 Million Lawsuit Over Streaming Failures

Florida man claims boxing match was nearly unwatchable due to technical issues during live stream

Netflix has recently found itself at the center of controversy following technical issues during the much-anticipated boxing match between Jake Paul and Mike Tyson on November 15, 2024. The match drew millions of viewers, making it the most streamed global sporting event ever, with Netflix reporting 108 million average viewers and 65 million concurrent streams at its peak.

Despite these impressive figures, the streaming giant is facing a class-action lawsuit from Ronald "Blue" Denton, a Florida resident and Netflix subscriber, who claims the platform provided "unwatchable" streaming due to technical glitches, including buffering issues and video freezes. Denton filed his lawsuit shortly after the fight, accusing Netflix of breach of contract and deceptive trade practices, and seeking unspecified monetary damages.

According to the complaint, the livestream problems were well-documented on social media, with over 100,000 viewers expressing their dissatisfaction with Netflix's service. Denton claimed the service was "woefully ill-prepared" for the fight's massive popularity, alleging to have witnessed the streaming melt down just as the bout was supposed to deliver on its hype. He quoted, "60 million Americans were hyped to see ‘Iron’ Mike Tyson, ‘The Baddest Man on the Planet’ versus YouTuber-turned-prizefighter Jake Paul. What they saw was ‘The Baddest Streaming on the Planet.’" The lawsuit also mentions the subpar performance, exacerbated by Netflix's past issues with live events.

Netflix admitted to the difficulties faced during the high-demand broadcast. According to Elizabeth Stone, Netflix's Chief Technology Officer, the event created unprecedented challenges, but the launch team prioritized stabilizing the stream for as many viewers as possible.

The fight itself saw Jake Paul, who is 27 years old, defeat the 58-year-old Tyson via unanimous decision after eight rounds, but the event’s technical challenges overshadowed its significance. Netflix's attempt to boost subscriber numbers through live sporting events is particularly important as competition grows within the streaming market—especially with Hulu entering the live sports arena and offering seamless coverage of major events without interruption.

The lawsuit requests class-action status, emphasizing the need for accountability for consumers who expected more from what would likely be one of Tyson's final bouts. The legal action underlines the broader concerns surrounding Netflix's capabilities to deliver reliable live events, especially when it has notable plans to broadcast NFL games on Christmas Day.

The response to the lawsuit from Netflix, which often boasts about its impressive subscriber base and the viewership numbers from high-profile events, remains to be seen. Whether this debacle will affect its future live-streaming endeavors remains uncertain. Critics are questioning if Netflix will be able to maintain its dominance as various platforms start to encroach on its territory, especially as subscriber expectations rise. Following Denton’s publicized grievances, consumers will be watching closely to see how Netflix responds to both the lawsuit and the overall criticisms surrounding its streaming reliability.