Netflix (NFLX) said its newly announced deal with WWE does not change its outlook to avoid investing in traditional live sports, at least for now.
“WWE Raw is sports entertainment, and it's right in the sweet spot of our sports business, the drama of sports,” Netflix co-CEO Ted Sarandos said in a post-Q4 earnings call on Tuesday. “It's there,” he said.
Prior to the announcement of financial results, Netflix and WWE's parent company TKO Group Holdings (TKO) announced a partnership. The deal will bring live professional wrestling, WWE's flagship program, to the streaming service starting in January 2025.
The 10-year deal is reportedly worth $5 billion and marks Netflix's first major venture into the world of live sports entertainment. However, Sarandos said the program won't change the company's overall sports strategy.
“This is sports entertainment close to our core,” Sarandos said, calling the deal with WWE “unique” compared to global sports rights from professional leagues like the NBA and UFC.
“As for the contract itself, it has the options and protections that we look for in a typical license agreement,” he continued. “I don't see this as a sign of other changes or changes in sports strategy.”
Instead of signing big-ticket contracts, Netflix is giving sports its own spin by producing documentaries and sports-related content like “Formula 1: Drive to Survive,” “Full Swing” and “Break Point.” I have taken the approach.
The company is also focusing on live sports events, and on November 14th will launch the Netflix Cup, a celebrity golf tournament featuring athletes from Formula 1: Drive to Survive and Full Swing. It was held. The event was livestreamed from the Wynn Gold Club in Las Vegas.
But Wall Street analysts and industry watchers are predicting that Netflix will eventually be forced to go all-in on sports, with live sports becoming the last in streaming as cable bundles deteriorate. states that it is the frontier of
“Eventually, we expect Netflix to move into live sports, especially as it scales up. [free cash flow] In a report released last June, Morgan Stanley said, “The company has a broad cross-generational offering and the ability to invest in major sports rights around the world.” “As we expand our advertising capabilities, we believe live sports will fit well into our content offering.”
alexandra canal I'm a senior reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, Email alexandra.canal@yahoofinance.com.
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