Netflix made a significant foray into live events on Tuesday, announcing a groundbreaking $5 billion rights deal to become the exclusive home of World Wrestling Entertainment’s (WWE) Raw starting from January 2025.
This ten-year partnership will see Raw available on Netflix in various regions, including the U.S., Canada, Britain, and Latin America.
In addition to Raw, Netflix will also exclusively broadcast all WWE shows, including SmackDown, and special events like WrestleMania and Royal Rumble outside the U.S.
This landmark agreement caused shares of TKO Group Holdings, WWE’s parent company, to surge by 21% in early trading, while Netflix’s shares remained stable.
Netflix retains the option to extend the deal for another decade or exit after the initial five years.
This venture into live events follows Netflix’s experimentation with live content last year, featuring comedian Chris Rock’s “Selective Outrage” stand-up special and successful sports-related programming like “Drive to Survive” and “Full Swing.”
October marked Netflix’s debut in live sports with “The Netflix Cup,” showcasing athletes from “Drive to Survive” and “Full Swing.”
The company’s third-quarter investor letter hinted at more live content, emphasizing its evolution from being solely focused on sports drama to incorporating live events.
Mark Shapiro, TKO’s President, praised Netflix for blending live sports with entertainment, describing the Raw deal as “transformative” and emphasizing its potential to broaden WWE’s reach.
Netflix’s move into live events represents its first significant investment in events appealing to WWE’s loyal and year-round fan base, distinguishing it from seasonal sports.
Raw, a Monday night staple, is the top show on Comcast-owned USA Network, drawing 17.5 million unique viewers annually.
This audience appeal positions Netflix to capitalize on its ad-supported streaming service (AVOD), particularly as its deal with Comcast for Raw rights ends this year.
Under the previous agreement, Raw earned approximately $265 million annually.
WWE’s merger with Endeavor Group’s UFC last year formed TKO Group Holdings, creating a powerhouse in the wrestling and entertainment industry with a total value of $21 billion.
In summary, Netflix’s $5 billion deal to exclusively broadcast WWE’s Raw and related events signifies a bold step into the world of live events and sports programming, enriching its content offerings and expanding its influence in the streaming landscape.
This move reflects Netflix’s ongoing efforts to provide diverse and engaging content for its global subscriber base.