Netflix places $5bn bet on live streaming with WWE Raw deal

Netflix has unveiled a $5bn push into live television after striking a decade-long 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.

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 ten.

Shares in TKO jumped 18.5% on Tuesday. Netflix rose 0.9% as investors waited on its latest quarterly earnings, due to be released this afternoon.

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.”

Netflix started experimenting with live global events last year, broadcasting a Chris Rock stand-up 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.”