Entertainment (WWE) has inked a historic 10-year deal with Netflix, marking a seismic shift in its three-decade history.
Starting January 2025, the flagship weekly live pro wrestling show, “Raw,” will exclusively air on Netflix, departing from traditional linear television networks.
The deal, valued at approximately $500 million annually, signifies WWE’s strategic embrace of the streaming era according to recent reports.
Under the agreement, Netflix becomes the global home for all WWE shows and specials outside the U.S., encompassing popular weekly programs like SmackDown and NXT.
Furthermore, Netflix will stream marquee live events such as WrestleMania, SummerSlam, and Royal Rumble, while offering WWE documentaries, original series, and upcoming projects on-demand globally, excluding the U.S. where Peacock retains domestic rights.
What they said
Netflix Chief Content Officer Bela Bajaria said in a statement. “By combining our reach, recommendations, and fandom with WWE, we’ll be able to deliver more joy and value for their audiences and our members,” The company has also licensed the rights to WWE’s documentaries and original series.
- “Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix,” Mark Shapiro, TKO’s president, said in a statement.
What you should know
Reflecting on Netflix’s perspective from 2022, Ted Sarandos had waved off the possibility of the company getting involved with sports live-streaming giants, citing a lack of a clear profit path in renting major sporting events.
- “We’re not saying there never will be,” he said,” but “dramatically expensive” rights have made sports effectively a “loss leader.”
- “We’re not anti-sports,” Sarandos added. “We’re just pro-profit. We have yet to figure out how to do it.”
Netflix’s focus remains on being “pro-profit,” and Sarandos admitted the challenge of figuring out a viable model for live sports streaming within the platform.
Sarandos expressed scepticism about venturing into niche sports due to their lower-cost rights, questioning whether such sports suffer from being under-distributed.
What we know
Raw Comcast’s annual payment of $265 million for Raw rights left investors anticipating a bigger payday, causing TKO’s shares to dip.
However, Netflix’s unexpected interest in live entertainment turned the tide, securing long-term deals for WWE’s key properties, including Raw and SmackDown.
TKO, now assured of lucrative arrangements for its major assets, including UFC, until 2025, witnessed a surge in confidence among investors.
Netflix’s foray into live programming, exploring Formula 1 rights and venturing into live events, reflects its commitment beyond on-demand content.
The WWE deal marks Netflix’s commitment to offering three hours of live wrestling weekly, attracting millions of loyal viewers and boosting its advertising-supported plan.
Netflix, with over 200 million subscribers, has previously experimented with live events, including a golf match and a comedy special.
This landmark deal signifies Netflix’s entry into long-term rights agreements, signaling a bold move into live sports streaming.
Raw, the WWE’s most-watched program with 1.5 million viewers per show, holds historical significance since its debut in 1993 and has been a launchpad for stars like Dwayne “The Rock” Johnson and John Cena.
The alliance between WWE and Netflix represents a pivotal moment, blending the rich legacy of wrestling with the dynamic landscape of streaming services.
