Netflix and TKO Group Holdings announced Tuesday that the streaming platform will begin airing WWE’s flagship show, “Raw,” starting next year, marking Netflix’s first major move into live sports.
According to a company filing, the 10-year deal is valued at over $5 billion. Netflix has the option to exit the agreement after five years or extend it for another decade.
The streaming giant will have global streaming rights to “Raw,” with exclusive rights initially covering the U.S., Canada, U.K., and Latin America.
Additionally, Netflix will become the global home for all WWE shows and specials outside the U.S., including “SmackDown,” “NXT,” and major events like “WrestleMania,” “SummerSlam,” and “Royal Rumble.”
Following the announcement, TKO shares surged more than 15%, fueled by the news and a separate revelation that actor and former wrestling star Dwayne Johnson would join TKO’s board of directors.
Netflix shares also rose by about 1%, ahead of the company’s fourth-quarter earnings report, set for later that day.
Netflix, which has been focusing on increasing revenue by curbing subscription sharing and pushing its ad-supported tier, has rarely ventured into live programming.
Adding “Raw,” which airs three hours of live content weekly on USA Network year-round, will significantly enhance its programming and marks a major shift for the platform.
“This is a game-changer,” said TKO President and Chief Operating Officer Mark Shapiro in an interview. “When you look back at the history of sports media, major shifts are driven by new paradigms.
ESPN and Turner bringing NFL to cable in 1987, Rupert Murdoch bringing football to Fox in 1994—’Raw’ on Netflix will be part of that history.”
While Netflix has previously explored sports through documentary series about Formula One, golf, tennis, and football, this deal allows the platform to leverage WWE intellectual property for similar projects.
According to a source, Netflix could also goes through the possibility of creating movies or series based on WWE characters with WWE’s approval.
For TKO, WWE’s parent company, the deal will bring WWE wrestling to Netflix’s 250 million global subscribers. WWE President Nick Khan has had Netflix in mind as a potential partner for “Raw” for several years.
He mentioned the streaming giant on a WWE earnings call in early 2022, pointing to Netflix’s willingness to reconsider long-held positions, such as introducing advertising and cracking down on password sharing.
In December 2022, Netflix co-CEO Ted Sarandos remarked at the UBS Global TMT Conference that Netflix hadn’t yet found a profitable path in live sports.
Khan had stated back in 2022, “Netflix is open to making adjustments and revisiting its positions when necessary.”
TKO engaged in discussions with other media companies but honed in on Netflix by December, according to sources familiar with the negotiations.
Shapiro highlighted Netflix’s global reach, which surpasses that of any other streaming service, as a major attraction for WWE. “Netflix is one of the top entertainment platforms in the world. Its marketing capabilities are unparalleled, and its prominence on the front page is second to none,” Shapiro said.
Earlier this month, Netflix reported having 23 million monthly active users for its ad-supported tier, launched in November 2022.
According to a source, matches will be scripted to account for commercial breaks in a way that maintains continuity for ad-free customers, with less pivotal moments—such as a wrestler being held in a headlock—continuing during the ads.
“Raw” is the USA cable network’s top program, attracting 17.5 million unique viewers annually, the companies said.
Shapiro noted that Amazon’s success in streaming “Thursday Night Football” this season without issues and Peacock’s effective streaming of an NFL playoff game gave him confidence in Netflix’s ability to handle streaming “Raw,” despite its lack of experience with consistent live broadcasts.
