In a bold move that further blurs the lines between traditional television and streaming services, Netflix has confirmed its foray into the world of live sports broadcasting by securing the rights to air WWE’s popular weekly program, “Raw.” The announcement came on Tuesday and underscored the company’s strategic pivot towards incorporating live content, a maneuver reminiscent of the traditional cable TV approach.
This $5 billion contract, commencing next year, not only brings “Raw” to Netflix’s already diverse catalog but also grants the platform exclusive international broadcasting rights for weekly wrestling shows such as “SmackDown.” The venture will not veer Netflix away from its core entertainment focus, executives assure, yet it unmistakably ramps up competition with conventional media outlets, especially as Netflix focuses on bolstering its fledgling advertising business.
By amalgamating its treasure trove of critical darlings like “The Crown,” innovative reality programs such as “Squid Game: The Challenge,” and critically acclaimed films, for instance, Bradley Cooper’s “Maestro,” Netflix is now adding the live broadcast appeal to its roster. This mix of live sports and entertainment aims to captivate subscribers with an immediate, can’t-miss watching experience.
Netflix’s adoption of this traditional cable TV tactic comes at a time when streaming services are amassing significant subscriber growth, as evidenced by Netflix’s addition of 13.1 million subscribers in the December quarter. The company’s actions are creating new growth opportunities as streaming reaches a ubiquity once held by cable TV; recent data reveals that streaming service subscriptions reach 85% of U.S. households.
The entertainment giant’s strategic pivot arrives in the wake of Hollywood strikes that ceased scripted show and film production, leading consumers to cut cable subscriptions in favor of more affordable streaming services. MoffettNathanson Research suggests that during this production downtime, media companies inadvertently fed the Netflix “beast” by licensing reruns that garnered substantial viewership.
As Netflix was compelled to pour billions into original content with networks reclaiming their titles for exclusive streaming service use, industry-wide challenges have now allowed Netflix to flip the script, potentially for the long-term. Analysts predict that Netflix might shift its original film strategy in favor of more cost-effective licensing models for previously released movies.
Emulating “the best” that broadcast television and premium cable networks offer, Netflix is shaping its identity to include standout dramas, comedy specials, movies, and now boxing – gaining a foothold in live broadcasting. Netflix’s integration of professional wrestling broadens its reach, delivering a large, weekly viewership that is highly attractive to advertisers.
As the platform evolves to accentuate its advertising revenue by 2025, industry experts see Netflix’s WWE deal not only as a strategic defensive move against competitors offering a wide array of live content but also as a shrewd, low-cost method.
Amid these developments, Netflix stocks saw an over ten percent surge after revealing their impressive fourth-quarter subscriber growth. Meanwhile, other streaming giants, such as Warner Bros Discovery’s Max and NBCUniversal’s Peacock, continue to create waves with their live sports offerings; for instance, a recent NFL wild-card game on Peacock drew a staggering 27.6 million total viewers, highlighting the voracious appetite for live sports content among American audiences.
However, while Netflix’s live event excursions are expected to grow, it remains unlikely that they will compete for the more costly sports broadcasting rights. Instead, Netflix’s successful track record in elevating niche sports into global phenomena, as seen with the “Formula 1: Drive to Survive” documentary series, reinforces its capability of expanding both interest and demographics on a worldwide scale, without necessarily diving into traditional sports broadcasting.
As Netflix redefines the streaming landscape by incorporating live events into its impressive content portfolio, it further cements its position as a multifaceted entertainment powerhouse, ready to bring countless hours of diverse programming to its vast global audience.
