The Big Move: Netflix Secures Exclusive Rights for WWE Raw Starting in 2025

Netflix (NASDAQ:NFLX) has scored a coup even more spectacular than the unexpected triumph of the 1-2-3 Kid over Razor Ramon.

Netflix’s Major Acquisition

The streaming behemoth has revealed that it will become the exclusive home of TKO Group’s (NYSE:TKO) WWE Raw in the U.S., Canada, U.K., and Latin America from January 2025. This deal marks a significant shift as Netflix positions itself to become the primary destination for WWE content.

Additionally, Netflix will also host all WWE shows and specials outside the U.S., including Smackdown, NXT, and flagship events such as WrestleMania, SummerSlam, and the Royal Rumble, commencing next year.

Since its debut in 1993, WWE Raw has been a fixture on linear television, most recently airing on Comcast’s (CMCSA) USA Network. The show has changed networks over the years but has been predominantly associated with USA Network for the majority of its 1,600 episodes.

The Monumental Deal

The agreement is set to span a decade and is valued at “in excess” of $5 billion, according to a filing by TKO Group. Furthermore, Netflix retains the option to extend the deal for an additional 10 years and can opt out after the initial five-year period.

Analyst Stephen Glagola from TD Cowen previously suggested that Netflix might be a contender in the forthcoming media rights renewal, which is due to expire in October 2024. He anticipated that the negotiations would transpire between the second and fourth quarters of this year, subsequent to the renewal of the NBA deal.

Mark Shapiro, President, and COO of TKO Group, labeled the deal as “transformative,” emphasizing that it combines the unmissable WWE product with Netflix’s unparalleled global reach, thereby solidifying substantial and predictable economics for many years. He articulated how the partnership fundamentally alters and bolsters the media landscape, greatly expands WWE’s outreach, and brings weekly live appointment viewing to Netflix.

Industry Impact and Response

Netflix’s Chief Content Officer, Bela Bajaria, expressed enthusiasm about the acquisition of WWE Raw, acknowledging its extensive and devoted multi-generational fan base. Bajaria voiced the belief that, by merging Netflix’s expansive reach, recommendations, and fandom with WWE, they will deliver enhanced joy and value for both audiences and Netflix members.

The move signifies Netflix’s continued foray into live sports rights, marking its most substantial endeavor yet. In a similar vein, last November, Netflix live-streamed “The Netflix Cup,” a match-play golf tournament featuring drivers from its Formula 1: Drive to Survive series and golfers from the show Full Swing.

Market Reaction

As a result of this groundbreaking development, TKO Group shares surged by over 19%, while Netflix shares gained more than 2%.

In unrelated news, TKO Group also announced the addition of Dwayne Johnson, known as WWE superstar The Rock, and entrepreneur Brad Keywell to its board of directors.

Looking Ahead

Netflix is scheduled to unveil its fourth-quarter results on January 23 after the close of trading, with investors eager to gauge the company’s performance following this game-changing acquisition.

(This story has been updated to include the deal’s worth.)