"Biggest Investment Ever"... Netflix Bets on Pro Wrestling

Securing WWE's 'RAW' Broadcast Rights
Large 5 Billion Dollar Contract Over 10 Years
Draws Attention Ahead of Quarterly Earnings Announcement

Netflix, the world's largest online video service (OTT) provider, will begin live broadcasting professional wrestling matches from World Wrestling Entertainment (WWE) starting next year. This is a large-scale investment targeting the growing demand for sports content in the evolving media environment.

[Image source=AP Yonhap News]

The Wall Street Journal (WSJ) reported on the 23rd (local time) that Netflix has secured the broadcasting rights for WWE's popular program 'RAW.' The deal is a major contract worth approximately $5 billion over 10 years. Accordingly, Netflix will broadcast RAW worldwide starting January 2025, when the existing third-party broadcasting rights expire, holding exclusive rights in the United States, Canada, the United Kingdom, South America, and other regions. Additionally, Netflix has secured broadcasting rights for other WWE shows and event matches such as 'SmackDown' and 'WrestleMania.' The annual live broadcast time is expected to reach 150 hours.

This contract is the largest deal Netflix has made in the sports sector. However, Netflix has the option to terminate the contract after 5 years or extend it for an additional 10 years after the initial 10-year term expires. Currently, USA Network, a subsidiary of NBCUniversal, which holds exclusive broadcasting rights for RAW in the United States, pays $1.3 billion over 5 years. That contract does not include international rights.

RAW is one of the popular programs in the United States, with over 2 million viewers per episode. For Netflix, this large investment is interpreted as a strategic move targeting the recent changes in the media market and the demand for sports content. Recently, American OTT platforms including Netflix have been expanding their investments in sports broadcasting. YouTube has acquired the rights to broadcast Sunday games of the National Football League (NFL), one of the most popular sports in the U.S., and Apple TV+ has secured viewing rights for the Major League Soccer (MLS) season. Some analysts suggest that these sports broadcasting rights will serve as a foundation for expanding advertising businesses in the future.

Bella Baharia, Netflix’s Head of Content, said, "RAW is the best content in the sports entertainment field," and added, "It will bring great joy and value to Netflix viewers going forward." Mark Shapiro, Chief Operating Officer (COO) of TKO Group, WWE’s parent company, stated, "This contract fundamentally changes and strengthens the media environment," and "It will allow us to expand WWE’s influence."

This news attracted even more attention as it came ahead of Netflix’s quarterly earnings announcement scheduled after the market close that day. Currently, Netflix’s stock price on the New York Stock Exchange is trading around $489 per share, up about 0.8% from the previous close. TKO Group’s stock price is surging over 16%.