Netflix and TKO group holdings said Tuesday that the streaming platform will air WWE's flagship show “Raw” starting next year, in Netflix's first major foray into live sports.
The 10-year deal is valued at more than $5 billion, according to a company document. Netflix will have the option to exit the agreement after five years and extend it for another decade. The streaming platform will be able to broadcast “Raw” globally and will begin the agreement with exclusive rights in the US, Canada, the United Kingdom and Latin America. Netflix will also become the home of all WWE shows and specials outside the US, including “SmackDown” and “NXT,” as well as “WrestleMania,” “SummerSlam” and “Royal Rumble.”
TKO shares soared more than 20% following the news and a separate announcement that actor and former wrestling superstar Dwayne Johnson would join its board of directors. Netflix shares rose less than 1%, hours before the company reported earnings after the bell on Tuesday.
Netflix, which is trying to generate revenue by reducing subscription sharing and pushing viewers toward its advertising-tier membership, has made few attempts at live programming in its history. Adding “Raw,” which currently airs on USA Network and produces three hours of live programming per week year-round, to its lineup will be a boon for the platform and a significant historical change for Netflix.
“This is a huge game changer,” TKO President and COO Mark Shapiro said in an interview. “When you look back at the chapters of sports media history, the new chapters are driven by extraordinary new paradigms. ESPN and Turner brought the NFL to cable in 1987. Rupert Murdoch brought football to Fox in 1994. When They write new stories, Raw on Netflix It will be a great start to the chapter.”
Netflix has recently forayed into sports with documentary-style series about Formula One and professional golf, tennis and soccer. This deal will allow Netflix to leverage WWE's intellectual property for similar projects. With WWE's permission, Netflix could even develop movies or series about WWE characters, a person familiar with the matter said.
For TKO, WWE's parent company, striking a deal with Netflix brings WWE wrestling to around 250 million subscribers worldwide. WWE president Nick Khan has had Netflix on his radar as a possible landing spot for “Raw” for several years.
He discussed the world's biggest streamer on a WWE Q1 2022 earnings call, referencing how Netflix has shown an openness to changing long-held stances, such as rejecting advertising and cracking down on sharing. of passwords.
“Netflix is willing to make adjustments and reverse positions when it identifies a problem,” Khan said in 2022.
Choose Netflix
TKO held talks with other media companies but focused on Netflix in December, according to people familiar with the matter.
Netflix's global presence, which surpasses all other streaming services, was a key draw for WWE, Shapiro said.
“This is one of the biggest entertainment platforms in the world,” Shapiro said of Netflix. “They have marketing that you can't even understand. They have unparalleled positioning in terms of what they do on their cover.”
“Raw” is the top show in the United States, attracting 17.5 million unique viewers a year, the companies said. Shapiro said Amazon's ability to stream “Thursday Night Football” this season seamlessly and Peacock's recent success in streaming a National Football League playoff game gave him confidence that Netflix will stream “Raw” technologically well. , even if you haven't done anything like this. consistently yet.
Disclosure: Comcast NBCUniversal, the parent company of CNBC, owns USA Network.
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