Netflix to stream WWE Raw starting next year

Netflix and TKO Group Holdings said Tuesday that the streaming platform will air WWE’s flagship program “Raw” starting next year, in Netflix’s first major foray into live sports.

The 10-year deal is valued at more than $5 billion, according to a company filing. Netflix will have the option to exit the deal after five years and to extend it for another decade. The streaming platform will be able to stream “Raw” globally, and will start the agreement with exclusive rights to it in the U.S., Canada, U.K. and Latin America. Netflix will also become the home for all WWE shows and specials outside the U.S., including “SmackDown” and “NXT” as well as “WrestleMania,” “SummerSlam” and “Royal Rumble.”

TKO shares spiked more than 20% in following the news and a separate announcement that actor and former wrestling superstar Dwayne Johnson would join its board of directors. Netflix shares rose less than 1%, hours before the company was set to report earnings after the bell Tuesday.

Netflix, which is trying to drive revenue by cutting down on subscription sharing and pushing viewers toward its ad-tier membership, has made few attempts at live programming in its history. Adding “Raw,” which currently airs on USA Network and produces three hours of live programming per week year-round, to its programming lineup will be a boon to the platform and a significant historical shift for Netflix.

“This is a super game changer,” said TKO President and Chief Operating Officer Mark Shapiro in an interview. “When you look back at the chapters of sports media history, new chapters are driven by extraordinary new paradigms. ESPN and Turner bringing NFL to cable in 1987. Rupert Murdoch bringing football to Fox in 1994. When new histories are written, Raw on Netflix will be such a chapter starter.”

Netflix has dabbled in sports recently with documentary-type series about Formula One and professional golf, tennis and football. This deal will allow Netflix to tap into WWE intellectual property…