Mike Tyson vs. Jake Paul will be a big test for Netflix's live strategy

• Mike Tyson and Jake Paul will fight Friday in what will likely be Netflix's biggest-ever live event.
• The streamer has increasingly segued into live sports while building an ad business.
• Netflix now has 70 million ad-supported users — up from 40 million in May.

Mike Tyson and Jake Paul will enter the ring Friday in a long-anticipated boxing bout that could be a big test for Netflix's ambitions.

Boxing matches with influencers have become lucrative spectacles in recent years, though Friday's event — originally slated for July but delayed due to health issues on Tyson's part — marks Netflix's first time in the ring and arguably its biggest live event ever.

For years, Netflix resisted live sports, which are a massive draw for advertisers. But it's since embraced the genre, seeking fresh avenues for growth.

In January, Netflix inked a $5 billion deal to bring the WWE show "Raw" to its service. And in May, the streamer inked a three-season deal with the NFL that calls for Christmas Day games at a reported price tag of $75 million per game.

The programming is rolling out as Netflix this week announced healthy growth for its ad-supported subscription tier, priced at $6.99.

Two years after launching, Netflix said it now has 70 million ad-supported users — up from 40 million in May.

And ad sales around flagship programming are booming, Netflix said. All of the in-game inventory for the two live NFL games it plans to air on Christmas is sold out, and it's partnering with multiple advertisers across 12 countries for the second season of "Squid Game."

But it hasn't been all smooth sailing. The streamer has shaken up its ad unit leadership on multiple occasions — most recently with Ampersand's Nicolle Pangis replacing Peter Naylor as VP of advertising last month.

Investors have wondered what future growth Netflix could yield given its increasingly saturated subscription business in the US. If Tyson vs. Paul is a knockout, that could portend well for its advertising ambitions — which Netflix has said could eventually account for 10% of revenues.

Netflix did not immediately respond to a request for comment from Business Insider.