Netflix, has made a groundbreaking move into live programming by securing the exclusive broadcast rights for World Wrestling Entertainment’s ‘Raw’ and additional content. The deal, valued at $5 billion over ten years, represents the streaming platform’s first significant venture into live broadcasting.
While specific financial details remain undisclosed, Netflix’s strategy involves tapping into WWE’s substantial viewer base to bolster its nascent ad-supported service tier. This initiative will see Netflix airing three hours of live wrestling every week starting from next year.
Commencing in January 2025, ‘Raw’ will be available on Netflix in numerous regions including the US, Canada, Latin America, and other international markets. This follows the conclusion of WWE’s existing contract with NBCUniversal.
Moreover, Netflix will exclusively stream all WWE programming outside the US, encompassing shows like SmackDown and NXT, along with live pay-per-view events such as Wrestlemania, without extra charges for subscribers.
WWE’s president, Nick Khan, highlighted the deal’s potential to expand WWE’s global presence in a Bloomberg Television interview. Meanwhile, the financial markets responded positively, with significant stock value increases for TKO Group Holdings, the parent company of WWE, and its major shareholder, Endeavor Group Holdings. Netflix’s stock price remained relatively stable.
In a strategic board addition, former wrestler and actor Dwayne “The Rock” Johnson will join Netflix’s board, gaining intellectual property rights to his wrestling persona and associated phrases. This move includes a mutual licensing agreement with WWE and promotional commitments, with Johnson receiving substantial compensation in TKO stock through 2025. Johnson’s prior arrangement with WWE yielded significant annual royalties, a practice set to continue under the new terms.
This partnership signifies a major shift in live event broadcasting, with WWE joining other major sports and entertainment offerings that have transitioned from traditional cable to digital streaming platforms.
This shift reflects the growing trend of high-profile live events migrating to digital platforms, as seen with the Ultimate Fighting Championship on ESPN+ and the NFL on Amazon’s streaming service. Despite its scripted nature, WWE attracts a steady live audience, with ‘Raw’ being its top program.
Netflix, in a statement from Chief Content Officer Bela Bajaria, expressed enthusiasm about the collaboration’s potential to enhance content delivery and viewer engagement. The deal not only includes live broadcasts but also encompasses licensing for WWE documentaries and original series.
The agreement comes at a time when Netflix’s subscriber growth and market performance are strong, with the company set to report its quarterly earnings amidst high expectations from Wall Street.
