Netflix (NASDAQ:NFLX) has taken a significant leap into live events, securing a rights deal exceeding $5 billion to become the exclusive home of World Wrestling Entertainment’s (WWE) Raw from January 2025. In a landmark 10-year partnership, Raw will be available for streaming on Netflix in the U.S., Canada, Britain, Latin America, and other select territories.
This collaboration extends beyond Raw, as Netflix will exclusively broadcast all WWE shows and specials, including SmackDown, along with pay-per-view live events such as WrestleMania and Royal Rumble, exclusively outside the U.S.
The announcement immediately impacted TKO Group Holdings (NYSE:TKO), the parent company of WWE, with shares surging by 21% in early trading. Conversely, Netflix’s shares remained flat.
As part of the deal, Netflix holds the option to extend the partnership for an additional 10 years or to opt-out after the initial five years. This strategic move aligns with Netflix’s foray into live events, which began with experiments such as comedian Chris Rock’s stand-up special, “Selective Outrage,” and successful sports-related programming like the Formula 1 racing documentary series, “Drive to Survive,” and the golf documentary series, “Full Swing.”
In October, Netflix hosted its inaugural live sports event, “The Netflix Cup,” featuring athletes from its sports documentary series.
Netflix’s evolution into live sports and events represents a shift from CEO Ted Sarandos’s previous stance that the platform was “in the sports business” and focused on the drama of sports rather than live games.
Mark Shapiro, president of TKO, praised Netflix for seamlessly blending live sports programming with entertainment, calling the Raw deal “transformative.” The move not only expands WWE’s reach but also brings appointment viewing to Netflix.
Raw, airing on Mondays, holds a top spot on the Comcast-owned USA Network, drawing 17.5 million unique viewers annually since its debut in 1993. This consistent audience is deemed valuable for Netflix as it strengthens its ad-supported streaming service (AVOD).
The Comcast deal for Raw, which ends this year, saw the show receiving approximately $265 million annually for the rights. The WWE’s merger with Endeavor Group’s UFC to form TKO Group Holdings last year, valued at $21 billion, solidified its position as a major player in wrestling and entertainment. The partnership with Netflix marks a strategic move for both companies in the dynamic landscape of live streaming and sports entertainment.
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