Netflix Secures $5 Billion Deal to Exclusively Livestream WWE’s Raw
Netflix has struck a groundbreaking $5 billion deal with TKO Group Holdings, the parent company of World Wrestling Entertainment (WWE), to exclusively livestream WWE’s flagship show, Raw. According to a Reuters report, the deal also includes exclusive international telecasts of other WWE shows and specials such as SmackDown, as well as pay-per-view live events like WrestleMania and Royal Rumble.
The announcement of this deal sent shares of TKO Group Holdings soaring by 21% during early trading. On the other hand, shares of Netflix remained flat. This move by Netflix is seen as a strategic step towards expanding its sports-related programming and attracting a larger audience base.
Under the terms of the agreement, Netflix has the option to extend the deal for another 10 years or opt out after the initial five years. This marks Netflix’s first long-term commitment to livestreaming live events that appeal to fans of all generations. Unlike traditional sports, professional wrestling offers year-round competitions, making it a reliable source of audience engagement.
Ted Sarandos, CEO of Netflix, has been known to focus on the drama of sport rather than live games, but the deal with WWE signals a shift in strategy. Netflix has been experimenting with live events, starting with comedian Chris Rock’s stand-up special, Selective Outrage, and finding success with sports-related programming like the Formula 1 racing documentary series, Drive to Survive, and the behind-the-scenes golf documentary series, Full Swing. In fact, in October, Netflix hosted its first live sports event, The Netflix Cup, which featured athletes from Drive to Survive and Full Swing.
This deal with WWE is seen as a transformative move for Netflix. Scott Shapiro, an industry analyst, hailed the partnership as a major breakthrough that expands the reach of WWE and brings appointment viewing to Netflix’s platform. Raw, which airs on the USA Network owned by Comcast, is currently the top show on the network with an annual viewership of 17.5 million. Netflix’s move into livestreaming sports is predicted to have a significant impact on its ad-supported streaming service, known as AVOD.
The deal with Comcast for the rights to broadcast Raw is set to expire this year, and the show was previously paid around $265 million annually. Besides the financial benefits, this partnership with WWE also aligns with Netflix’s goal of attracting a loyal, multi-generational fan base.
WWE merged with Endeavor Group’s UFC to form TKO Group Holdings last year, creating one of the biggest names in wrestling and entertainment. This $21 billion deal consolidated its position in the industry and paved the way for collaborations like the exclusive livestreaming agreement with Netflix.
As Netflix continues to evolve and expand its offerings, this landmark deal with WWE demonstrates the streaming giant’s commitment to delivering diverse and engaging content to its global audience. With its newfound focus on live events, Netflix is set to tap into the passionate fan base of WWE and bring the excitement of Raw and other wrestling shows to millions of viewers around the world.
In conclusion, Netflix’s $5 billion deal with WWE will see the streaming service become the exclusive platform for livestreaming Raw, as well as other WWE shows and pay-per-view events. This strategic move aligns with Netflix’s efforts to diversify its content and attract a wider audience, with a particular focus on sports-related programming. As the popularity of professional wrestling continues to grow, Netflix is positioned to capture the attention and loyalty of wrestling fans worldwide.
