The much-anticipated boxing match between Mike Tyson and Jake Paul was streamed live by Netflix on November 15, 2024. Netflix claims the event was the most-streamed sporting event with 38 million concurrent streams in the US, with a total of 65 million concurrent streams globally.[1]
Lawsuit over Streaming
Although billed as a landmark event for sports, Netflix’s streaming caused problems for many viewers with their devices freezing, endlessly buffering, or even crashing. Netflix CTO Elizabeth Stone said that the “unprecedented scale created many technical challenges” and acknowledged some people had a poor viewing experience.[2]
A lawsuit has been filed by Ronald Denton in Hillsborough County, Florida asserting there should be a class action for all affected subscribers. Despite the challenges of streaming a live sporting event, the lawsuit argues that Netflix breached the contract by failing to provide uninterrupted streaming services despite charging its subscribers for that service.[3]
This lawsuit could set a new precedent for how companies manage user expectations on streaming services and the legal remedies available to dissatisfied customers.
However, it is unlikely for the case to even be heard based on several provisions in Netflix’s Terms of Use. First, Netflix likely escapes any liability based on Section 6.1 of the Terms of Use providing that the services are provided “as is” and “as available” without any warranty that the service will be uninterrupted or error-free.[4] Even if there is liability, the court in which this action was filed is likely to determine it does not have jurisdiction due to the arbitration clause in Section 7 of the Terms of Use. Further, Section 7.6 further prohibits any class proceeding.
Although seemingly safe from legal repercussions, the court of public opinion could have a more significant impact on Netflix’s reputation and bottom line. Netflix has just over a month to fix the streaming issues before it airs two live NFL games on Christmas Day. If similar technical problems arise during these broadcasts, public perception could deliver a harsh verdict that Netflix cannot handle streaming live sports.
Another Potential Lawsuit From The Match
Dan Lust, a sports law attorney and professor at New York Law School, has raised the issue of whether Paul’s comments after the match could bring him legal trouble. Fans observed that Tyson came out strong at the beginning of the match, but quickly became fatigued, with Paul dominating the remainder of the match.[5] When the final bell rang, the judges unanimously gave the fight to Paul.
Paul seems to have admitted going easy on Tyson near the end, stating that “I didn’t want to hurt someone that didn’t need to be hurt.”[6] When asked if he took his foot off the pedal, Paul responded affirmatively and that he “wanted to give the fans a show.”
The Texas Department of Licensing and Regulation sanctioned the fight as an official fight rather than as an exhibition. The betting lines going into the fight favored Paul winning by knockout. Prior lawsuits by sports bettors have been unsuccessful because generally athletes get paid whether they play or not, and there are multiple layers of individual players, event promoters or teams, and the league setting the rules. However, in this case, Paul only got paid when the fight occurred, and he is a co-owner of the event promotion company. He also helped shape the unconventional rules for the fight, including heavier weight gloves and fewer, shorter rounds. Dan Lust points out that this may open the door to potential liability because Paul has a personal stake in making the fight happen and selling the show to the public, rather than vying for the best outcome as a competitor.
Conclusion
According to multiple sportsbooks, more bets were placed and more money wagered on this fight than any other boxing or MMA fight in recent history.[7] Although the one lawsuit against Netflix does not look like it has legs, there still remains a possibility for further legal action by bettors based on the aftermath of this fight.
[1] https://about.netflix.com/en/news/jake-paul-vs-mike-tyson-over-108-million-live-global-viewers
[2] https://www.thewrap.com/netflix-cops-to-tech-glitches-tyson-paul-fight/
[3] https://www.foxnews.com/sports/netflix-subscribers-sue-company-breach-contract-over-poor-quality-mike-tyson-jake-paul-fight
[4] https://help.netflix.com/legal/termsofuse
[5] https://www.houstonchronicle.com/sports/general/article/mike-tyson-jake-paul-fight-results-19918655.php
[6] Id.
[7] https://www.espn.com/boxing/story/_/id/42466487/mike-tyson-vs-jake-paul-most-heavily-wagered-fight-years
Christopher Atwood (Class of 2025) is pursuing his J.D. at the University at Buffalo School of Law, with a concentration in Intellectual Property.
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