In a media move that could have seismic reverberations throughout the entertainment and streaming worlds, Netflix revealed today it was entering a massive multi-billion dollar partnership with World Wrestling Entertainment.
In a move first reported on by Bloomberg, the partnership is a 10-year deal valued at $5 billion and is being touted as Netflix’s “first big move into live events.”
“Raw will air on Netflix in the US, Canada, Latin America and other international markets beginning in January 2025, after the expiration of the WWE’s domestic deal with Comcast Corp,” Bloomberg reported. “The company will also become the exclusive home outside the US for all WWE shows and specials, including Smackdown and NXT, as well as pay-per-view live events like Wrestlemania, SummerSlam and Royal Rumble.
“The pay-per-view events will be included at no additional cost for Netflix customers.”
According to The Wall Street Journal, this monstrous deal includes an option for Netflix to extend the deal for an additional 10 years.
Conversely, the deal also has an opt-out clause after five years, should Netflix feel the partnership is not working in its favor.
While Netflix has done some cursory work with the occasional live special in the past (the occasional comedy special or reunion show, as well as some one-off sports programming), this will easily be the company’s biggest venture into live programming given the sheer volume of live, original programming WWE produces.
WWE Raw, the company’s flagship show, produces roughly three hours of original, live programming every week — a stark departure from the one-off hour-long live specials Netflix has typically dabbled in.
WWE Raw is coming to Netflix!
Starting in January 2025, @Netflix will exclusively stream #WWERaw (in the US, Canada, UK, & Latin America) every single week, all year long! https://t.co/SOSACjfp7w pic.twitter.com/lTdSXMep9K
— WWE (@WWE) January 23, 2024
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More so, WWE also has a unique advantage compared to most programming in that it produces content year-round. As is often lamented by fans who’ve seen a few too many wrestlers pass away too soon, WWE features nothing resembling an off-season or downtime.
One thing that is not clear is what will happen to WWE premium live events (the company’s preferred nomenclature to the more traditional “pay-per-view” term).
For now, it appears that the streaming service Peacock will still carry PLEs in the United States.
Given the magnitude of the deal, TKO Group Holdings Inc., the massive entity that owns both the WWE and the UFC, saw its stock surge 21 percent in the wake of the news.
Interestingly enough, the lone man who appears to have benefited most from this new business deal is none other than WWE legend and actor Dwayne “The Rock” Johnson.
As Bloomberg notes, in the wake of the Netflix bombshell, TKO introduced Johnson as a new member of its Board of Directors.
TKO appoints Dwayne Johnson to Board of Directors@TheRock @WWE @ufc pic.twitter.com/bhTgADAEb7
— TKO (@TKOGrp) January 23, 2024
Johnson “will be granted the intellectual property rights to ‘The Rock’ trademark, as well as related catchphrases. Johnson is then licensing that intellectual property back to WWE for up to 10 years. He’ll also provide promotional services to WWE, for which he will be entitled to about $30 million in TKO stock through 2025.”
The ownership of “The Rock” moniker is a stark departure from how WWE traditionally operates business.
Current WWE superstar Cody Rhodes infamously could not use his last name (Rhodes is his real last name) when he previously left the company to compete on the independent circuits.
