WWE’s Post

Big news from Netflix and TKO today. With more and more live sports moving to streaming platforms and taking the only real valuable advertising space with them, what does this mean for companies and advertising? Also will streaming move more and more to ad based models to grab more $$$$?

Netflix's recent 10 year deal with WWE worth $5bn symbolises the growing importance live sports and entertainment programming plays outside of linear TV - especially for advertisers. Media commentators have highlighted that this deal, will bring WWE's highly engaged fan base bring more eyeballs (which can be monetised) to the streaming platform. Furthermore, because the regular season runs for 52 weeks of the year, this will mean more consistent viewership opportunities, which can then translate into more ad sales and higher subscription numbers. Meanwhile, Netflix's unprecedented reach allows WWE'S fandom to be expanded to new and more mainstream markets. Everybody wins! Read more about the impact here: https://lnkd.in/eyvfV-k5

Why did Netflix pay $5B for WWE? In five years, it's going to look like a bargain for both sides. Here are three reasons why: 1. Launching into live events gets much easier for Netflix with a very loyal and engaged wrestling fanbase. 2. Netflix Ad-Tier gets premium pricing that go with live audiences. 3. Remixed Existing Content - ala F1/PGA/ATP - there will be a Behind the Scenes for Raw, and who doesn't want Untold - Rick Flair? This ecosystem will sustain subscribers, and grow live engagement for Netflix. TKO gets big wins with Live Event Sponsors, and new sales for merch, tickets and PPV Events, and any deal for Ultimate Fighting Championship right will likely come at a sizable multiplier. BONUS: Wrestlers (past & present) will be in more ads, and as an 80's kid, I am here for that. #sportsmarketing #streaming https://lnkd.in/gHQYJ5GK

Netflix makes a grand entrance into live sports streaming with WWE, boasting a $5 billion investment. With a show that pulls in 17.5 million unique viewers annually on the USA Network, the stakes couldn't be higher. I'm particularly interested to witness if Netflix's CDN, "Open Connect," can seamlessly navigate the anticipated traffic surge. Reflecting on their recent stumble during the "Love Is Blind" live stream, encountering technical glitches seems to be part of the live-streaming landscape. The persistent demand for top quality, low-latency delivery continues to rise, often exposing the tendency of companies to overspend on production without allocating a proportional budget for the critical delivery phase. Despite these challenges, the underlying message is crystal clear, after 31 years on linear television, "Raw" is making its streaming debut, marking fantastic news for the live-streaming industry. 🌐📺 https://lnkd.in/dapgp5sU

With Netflix's recent acquisition of the exclusive rights to WWE and Peacock's record-breaking live streaming of the Chiefs vs. Dolphins wild-card round, is this live content grab turning these streaming giants into the digital version of evil cable companies? They're forcing sports and entertainment fans to pay additional monthly fees for live content with ads! Just like cable did, and we all hated it. The WWE reaches >1B households worldwide each week and the NFL dominates ratings every week. These are not niche programs. This will affect, well almost everyone. So, if you want to watch the WWE, you have to have Netflix, and if you want to watch TNF, you have to have Amazon Prime and if you want to watch the NFL playoffs you need Peacock. The streaming giants are gradually forcing us to have all the platforms. IMO the winner will be the brand that bundles them all together for a cheaper price. State Farm, are you up for the challenge? Elon? Someone I've never heard of? Am I missing something? #streaming #sports #entertainment #strategy

Netflix spends $5 Billion for WWE over 10 years. Okay my #streamingwars bingo card did NOT have an alliance between Netflix and WWE for live "sports entertainment" on Netflix. I knew the WWE TV rights were being negotiated and were valuable. I knew that the new TKO (WWE UFC) had unprecedented negotiating power. I did not think Netflix would be dropping 5 Bills on WWE. Live sports and sports entertainment are one way to increase audience and subscribers. Everyone is doing. it. So is Netflix. ----- NYTimes: "Netflix to Stream W.W.E.’s ‘Raw’ in $5 Billion Deal The weekly wrestling program will move to Netflix in 2025 as part of a 10-year agreement, a big leap into live events for the streaming platform. Netflix reached a multibillion-dollar, 10-year deal for exclusive rights to W.W.E.’s flagship weekly wrestling show, “Raw,” as the streaming giant broadens its offerings with more live content. The deal will bring “Raw” to Netflix starting next January, Netflix and TKO Group, W.W.E.’s parent company, said in a statement on Tuesday. Netflix will also own the rights to stream W.W.E.’s other shows and specials outside the United States. The agreement will cost Netflix more than $5 billion and last for 10 years, with an option to extend an additional 10 years or opt out after five, TKO Group said in a regulatory filing. Hours later, Netflix said in an earnings announcement that it had added 13.1 million subscriptions in the fourth quarter, the largest quarterly gain in company history. The service now has 260 million subscribers worldwide. “By combining our reach, recommendations and fandom with W.W.E., we’ll be able to deliver more joy and value for their audiences and our members,” Netflix’s chief content officer, Bela Bajaria, said in a statement. The company has recently focused on sports documentaries over live sports. But adding “Raw” to its lineup makes Netflix more competitive with rivals like Peacock, which has made live sporting events a backbone of its service and recently streamed a National Football League playoff game. Amazon Prime has been streaming Thursday night N.F.L. games since 2022; Apple has signed a $250-million-per-year deal with Major League Soccer and an additional pact with Major League Baseball. Just months ago, Ted Sarandos, the company’s co-chief executive, told analysts during a third-quarter earnings call that documentaries and behind-the-scenes shows like “Drive to Survive,” “Full Swing” and “Quarterback” were “the part of the sports business that we bring the most value to, which is the drama of sports.” He added of live sports: “We’re not anti-sports. We’re just pro-profit. We have yet to figure out how to do it.” The deal with W.W.E., which is sports-adjacent and features content that is live and largely scripted, may be a step toward figuring it out." NYTimes: https://lnkd.in/genvTPFb #streamingwars

Netflix’s days of chasing prestige might be rapidly coming to an end with this sharp reversal of the streaming golden age replaced by something akin to Spike TV circa 2005. Or USA Network circa 2011. That isn’t necessarily a bad thing. Both networks were good at putting entertaining old films and TV shows in front of me and capturing programming successes with WWE, US dubs of popular and outrageous game shows from overseas, and Suits. The problem is those are just also kind of Netflix’s streaming strategy in 2024 when the economics of streaming are still in flux and, thus far, pretty different from cable. (Although Suits has had such a popular run at Netflix that USA is now pivoting back to making that kind of content, too.) Netflix’s rapidly growing ad business will likely cover the cost of WWE rights. “This should add some fuel to our new and growing ad business,” Netflix co-CEO Ted Sarandos said in an earnings call after the announcement. But, if it doesn’t, then spending $5 billion to secure the rights for WWE Monday Night Raw for the next ten years means Netflix subscribers could see another price hike in their future — whether they like wrestling or not.

The streaming wars appear to be reaching a pivotal moment where Netflix has won, the others are retreating with their debt-laden balance sheets, and the victor is evolving into an old favourite - cable television. In a highly competitive streaming market where every streaming service is fighting for your limited dollars, it feels like a not great thing that Netflix’s top 10 list could be mistaken for the lineup at any cable news channel. But it also feels like that might be Netflix’s plan. Just today, it announced it was going to be the new official home of one of basic cable’s crown jewels: WWE Monday Night Raw. And yesterday, the company announced the departure of Scott Stuber, who oversaw Netflix film’s three consecutive years as the most nominated film studio at the Academy Awards. Netflix’s days of chasing prestige might be rapidly coming to an end with this sharp reversal of the streaming golden age replaced by something akin to Spike TV circa 2005. Or USA Network circa 2011. That isn’t necessarily a bad thing. Both networks were good at putting entertaining old films and TV shows in front of me and capturing programming successes with WWE, US dubs of popular and outrageous game shows from overseas, and Suits. The problem is those are just also kind of Netflix’s streaming strategy in 2024 when the economics of streaming are still in flux and, thus far, pretty different from cable. (Although Suits has had such a popular run at Netflix that USA is now pivoting back to making that kind of content, too). Netflix’s rapidly growing ad business will likely cover the cost of WWE rights. “This should add some fuel to our new and growing ad business,” Netflix co-CEO Ted Sarandos said in an earnings call after the announcement. But, if it doesn’t, then spending $5 billion to secure the rights for WWE Monday Night Raw for the next ten years means Netflix subscribers could see another price hike in their future — whether they like wrestling or not. Spoiler Alert - the ten year old version of me is partly shocked, partly proud, and partly excited to see that professional wrestling has evolved from a territory based niche event to a powerhouse global business that has more growth ahead. #sttreamingwars #content #marketing #strategy #digital #platform

ICYMI - Netflix shines in Q4, surpassing expectations with a 50% surge in net new paid subscribers. The #streaming giant, valued at $233 billion, strategically partners with WWE for a 10-year deal, bringing popular #wrestling shows to its platform. As Amazon plans to launch an ad-supported tier, Netflix defends its ad-free model. The move raises questions about profitability—will this content strategy pay off? https://lnkd.in/gkACrti2