WWE’s new Netflix, Rock partnerships will have substantial ripple effects
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The massive headlines were inescapable on Tuesday morning.
Raw was heading to Netflix on a 10-year, $5 billion deal beginning in 2025 and Dwayne “The Rock” Johnson was named to the TKO board of directors while gaining full ownership of “The Rock” name and entering into a new services and licensing agreement with WWE.
Those are the broad strokes in what officially feels like the beginning of the Nick Khan era in WWE that will be bold, international — with so many premium live events now outside the U.S. — and very lucrative with him as CEO.
But what else does it all mean?
For one, it means Raw technically is a weekly PLE as fans who don’t have Netflix will have to pay another $77 to $185 a year — depending on if you are OK with ads — to watch it.
With SmackDown moving back to USA Network and NXT jumping to CW, fans must pay three separate entities to watch WWE programming, even if you have cut the cord already.
The wrestling audience is an uber-loyal one, with many fans likely already subscribing to Netflix, and it’s assumed the majority of those who do not will likely add it. But it will be a test for some if they are willing to pay more to watch WWE.
Also in the Raw-Netflix press release, something that got a few people confused, is it said Netflix will be the home for all WWE programming outside the U.S., including NXT, SmackDown and PLEs.
PLEs for those who live in the U.S. will remain on Peacock until at least 2026. But it’s a deal reportedly worth around $1 billion that Khan said last May was under market value just two years into the pact.
It should at least open the door for a bidding war between Netflix and NBC Universal, which still has skin in the game by owning the SmackDown rights when that deal comes up. Others will of course jump in too with Amazon and Apple already making forays into live sports, but Netflix and NBCU should feel more compelled with their weekly shows being a promotion for the PLEs. ESPN+ could be another potential suitor for PLEs as ESPN+ broadcasts’ UFC pay-per-views; WWE and UFC are both under the TKO umbrella.
Also, expect plenty of WWE-themed programming/documentaries on Netflix, which is another advantage to taking one of its shows off cable.
The Rock joining the board of directors feels important on several levels.
One, it means a former wrestler not married into the McMahon family has a seat at the big table for the first time. (Technically is he Roman Reigns’ boss now?)
Also, it means we almost certainly see him wrestle this year and maybe beyond as he has a new services and merchandise agreement and a bigger stake in the company’s success. Why wouldn’t he want to contribute to it more in the best way he can for the bottom line and the growth of the business?
He further teased a clash with Reigns Tuesday on ESPN’s “First Take,” saying “there’s a chance” the two have a match at WrestleMania.
His presence also made me think about the UFL, the merged spring football league between the XFL and USFL that Rock and ex-wife Dany Garcia own the largest chunk of. If the league proves to be successful, who couldn’t see TKO buying it at some point if it feels the media rights will be profitable for them?
Lastly, the Netflix news is fantastic for AEW and means the promotion should be around and thriving for a long time. It ends speculation that Raw could be heading to Warner Bro. Discovery if the company didn’t land the NBA rights again, clearing the way for AEW to likely sign a lucrative television rights deal with its current partner.
You’d think it would also make adding AEW programming to Max’s new sports streaming wing an even bigger part of the conversation. Rampage and Battle of the Belts might be of greater value there long-term than they are on cable as the hardcore AEW fans will follow it there.
Tuesday was a monumental day for sports television rights, WWE and pro wrestling as they moved its weekly programing into an arena it’s never been before.
The effectiveness of it and ripple effects moving forward will be fascinating.
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