12:17 PM EDT, 05/16/2024 (MT Newswires) -- Netflix's ( NFLX ) new deal with the National Football League to air at least one game on Christmas Day over three years is a "positive read" for the sports rights marketplace, UBS Securities said in a note.

"Along with the recent WWE deal, we believe the addition of NFL rights provide another lever to drive engagement, enhance pricing power and scale the company's ad business," according to the note Wednesday.

UBS said the deal, which it said is Netflix's ( NFLX ) biggest in securing tier 1 sports rights, highlights Netflix's ( NFLX ) "growing ambitions" in sports.

"We believe efforts to take sports [direct-to-consumer] will sustain demand for rights, helping offset the worsening economics from buyers in traditional TV," the firm said.

The deal starts with two games scheduled for Christmas Day in 2024, the company announced earlier.

UBS maintained its buy rating and $685 price target on the stock.

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