Netflix, Inc. has announced a massive streaming rights deal to air World Wrestling Entertainment’s Raw programming beginning in January 2025.
The multi-billion dollar deal will also include World Wrestling Entertainment (WWE) shows Smackdown and NXT, along with pay-per-view content that will be available to Netflix subscribers free of charge.
“In addition to the United States, it allows us to gain even a greater global footprint,” WWE president Nick Khan said in an interview with Bloomberg Television on Tuesday.
TKO Group Holdings Inc., the owner of WWE, will also continue to pay royalties to Dwayne “The Rock” Johnson, who has also been named to the board of directors. Johnson also owns the newly formed United Football League, which formed this winter after a merger of the USFL and the XFL, creating a unified spring football league.
Johnson will receive about $500,000 in royalties annually and will gain roughly $30 million in TKO stock through 2025.
According to reporting by The Dallas Express, TKO was formed in 2023 after an all-stock merger between WWE and the UFC. The newly formed company had an estimated value of $21.4 billion at the time of the merger.
Raw is the most-watched WWE show currently running. The show averages 1.5 million per show, according to Bloomberg. The show has propelled the careers of Johnson and John Cena. It also showcased the Bella Twins, who have found success as reality TV stars.
“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,” Netflix chief content officer Bela Bajaria said in a statement.
The WWE has remained a profitable enterprise over the last several years. Fourth quarter earnings are anticipated to clock at least an 11% increase. Stock values are up 40% over third quarter numbers last year.
Comcast acquired the rights to Raw in 2019 for about $265 million a year but was unable to renew the contract, which expires at the end of 2024. NBCUniversal currently holds the U.S. rights to Smackdown and NXT and will continue to hold those rights under the new deal.
“Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix,” Mark Shapiro, TKO’s president, said in a statement.
The new streaming rights deal is rumored to be valued at $5 billion over 10 years. Specifics of the rights deal have not been publically released.
