Netflix places $5bn bet on live streaming with WWE Raw deal
Netflix has unveiled a $5bn push into live television after striking a decadelong deal with World Wrestling Entertainment (WWE) to broadcast the hit wrestling show Raw.
The entertainment giant, which led the on-demand streaming revolution, has dabbled with live events in recent years in a bid to shore up its dominant position as the world’s largest streaming platform.
Hours after announcing its WWE deal, Netflix revealed it had added 13.1 million subscribers in the closing months of 2023 – its biggest fourth quarter for audience growth – leaving it with a record 260 million subscribers worldwide.
Raw, WWE’s flagship weekly program, will air exclusively on Netflix in the US, Britain and other markets from January.
More countries will be “added over time”, the company said in a statement with TKO Group, the owner of WWE. Outside the US Netflix will also show WWE shows, such as SmackDown, and specials.
Under the deal, Netflix will pay “in excess of” $5bn to air WWE content from 2025 for a decade, according to a stock market filing. It has the option to exit the partnership after five years, or extend for a further 10.
Shares in TKO rallied 15.8% on Tuesday. Netflix rose 1.3% before the market closed, when its shares jumped 8.5% following its latest quarterly earnings. Revenue at the business increased 12.5% to $8.8bn in the last quarter, while net income rose to $938m, from $55m in the same period of 2022.
Netflix’s stock tumbled in early 2022 as the service shed subscribers for the first time in a decade. But it has rallied sharply over the past year as the company reassured Wall Street it was taking action to regain momentum.
The service added 29.5 million subscribers during 2023 as it cracked down on password sharing and diverted users towards its new ad-funded tier. “We believe there is plenty of room for growth ahead as streaming expands,” Netflix wrote in its quarterly letter to investors.
The company started experimenting with live global events last year, broadcasting a Chris Rock standup special in the spring and streaming a celebrity golf event in October, ahead of the Las Vegas Grand Prix. A live reunion episode of its Love Is Blind reality TV series faced technical difficulties, and was filmed and released the following day.
“We are excited to have WWE Raw, with its huge and passionate multigenerational fan base, on Netflix,” said Bela Bajaria, chief content officer at Netflix. “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.”
Mark Shapiro, president and chief operating officer at TKO, said: “This deal is transformative. It marries the can’t-miss WWE product with Netflix’s extraordinary global reach and locks in significant and predictable economics for many years.
“Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix.”