WWE Raw’s $5 billion deal with Netflix has marketers eying the platform’s thirst for live sports
Yesterday’s announcement revealed that Netflix had acquired the streaming rights for WWE Raw in 2025, putting an end to months of speculation about its destination.
This $5 billion deal for the next 10 years means that WWE Raw will air live for the first time on a streaming platform. Netflix has experimented with streaming specials such as the Love is Blind Reunion and the comedy specials. Netflix has never broadcast a three-hour weekly show, so this will be a challenge.
“Wrestling fans are conditioned to having a reliable way to watch WWE Raw. They’ve known where it is for over 30 years. If all of a sudden it doesn’t work, that’s going to create a big issue with the fanbase,” said Sean Ross Sapp, Wrestling Reporter of FightFul.
In the current landscape where streaming services compete for live sports, brands and marketers closely observe the decision to shift WWE Raw to Netflix while determining their marketing allocations. Endeavor declined to comment upon request.
The streaming wars continue to focus on live sports, according to Jes Santoro, Cadent’s EVP, Advanced TV and Video. Netflix’s investment in the WWE highlights the value of live sports as well as how linear and digital media are converging. Santoro believes this massive partnership will likely be a win for Netflix, at a time it may phase out its cheapest no ads tier.
“Netflix should benefit from more revenue by both increasing subscribers and driving ad sales on their ad-supported tier,” said Santoro.
As he discussed with Bloomberg, WWE President Nick Khan anticipates that Netflix will thrive in a similar market as Amazon’s ad-supported tier. Khan envisions a significant advertising opportunity for Netflix as a result of WWE’s continued presence on Raw every week, providing three hours of content each week.
As reported by CNBC, WWE Raw on Netflix will contain ad breaks to satisfy customers who don’t want to view advertisements. It may open up a broader opportunity for brands to advertise on Netflix during WWE Raw for those who have ads in their subscriptions, according to marketers who attributed WWE’s deal with FOX ending because of too little return on investment on advertising dollars.
Empower’s Chief Investment Officer, Lee Doyle, suggests Netflix partnering with the WWE not only provides the WWE with the opportunity to engage their existing audiences (Gen Alpha & Gen Z), which represent 75% of Netflix’s viewership and 55% of WWE’s viewership, but also enables the WWE to drive deeper engagement.
“Netflix previous investments have been focused heavily on the original series space, but when you consider WWE as an entertainment platform, designed around storytelling, this seems to be a natural evolution of the Netflix brand identity, with the added bonus of being able to leverage existing IP which has a strong brand already, backed by passionate cult fandom following to support this investment,” said Doyle.
Streaming viewership for 2023’s Wrestlemania has increased by 29% compared to 2022, proving that streaming is the right platform for WWE. Netflix is working to monetize WWE’s fans across their core audience, according to marketers. As cord cutting continues to become more popular, this announcement coincides with expectations that it will continue.
Mark Brown, Chief Investment Officer at Rain The Growth Agency, predicts Netflix may secure rights to future UFC matches if they are successful with WWE live content. Brown also suggested Netflix use WWE’s IP to produce documentary content on the UFC or WWE as he pointed out “Formula 1: Drive to Survive” and “Full Swing”‘s success.
“It’s possible that Nick Khan, Ari Emanuel, and the Endeavor leadership see Netflix as the kind of partner who can help elevate their athletes and their sport’s profile the same way they did for F1 and Golf,” said Brown.”
