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Netflix Jumps on Revealing Raw Strategy
The deal 10-year deal is valued at more than $5 billion, according to a person familiar with the matter.
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 but has never struck a long-term sports rights deal before this. Adding Raw, which currently airs on USA Network, to its programming lineup will be a boon to the platform.
For TKO, the parent company of WWE, striking a deal with Netflix brings WWE wrestling to more than 250 million global subscribers.
Raw has been the top program on NBCUniversal’s cable network USA, drawing 17.5 million unique viewers per year, the companies said.
Separately Tuesday, the WWE’s parent company TKO announced actor and former wrestling superstar Dwayne Johnson would join its board of directors.
Netflix is also scheduled to report its financial results for the fourth quarter today after market close. Consensus is for it to earn $2.20 a share versus 12 cents per share a year ago.
Wall Street currently has a consensus “overweight” rating on $NFLX even though it’s already up more than 40% since its low in mid-October.
TKO shares boarded the “up” elevator $16.96, or 21.9%, to $94.38 in early trading following the announcements. As for Netflix, that stock jumped $1.60 to $487.31.
