WWE’s new deal with Netflix presents some potential successes and challenges for their business venture in 2025.
Earlier this year, WWE announced a significant shift in their way to deliver the company’s flagship show, WWE RAW, to its audience with the announcement of a deal with Netflix. This signified a long-term partnership with the innovative streaming platform. According to various sources, like The Hollywood Reporter and Variety, the 10-year deal between the two parties is worth an approximate $5 billion. TKO president and COO Mark Shapiro would state, “This deal is transformative.” However, there are several key strategic factors that present various strengths, weaknesses, opportunities, and threats for the WWE/Netflix partnership.
STRENGTH & WEAKNESS
A key strength of this deal is the expansion of their reach beyond the linear format the WWE has implemented for the better part of three and a half decades. By partnering with the world’s largest streaming platform (Netflix), the WWE can tap into a broader and more diverse audience. In turn, it can attract a younger demographic that prefers streaming services over traditional television. However, a notable weakness is that many longtime fans have grown accustomed to watching WWE on cable, so the sudden change may show resistance to switching to a streaming platform. This resistance from traditional viewers could lead to a sudden decline in viewership.
OPPORTUNITIES & THREATS
The partnership also presents significant opportunities that play off the strengths while recognizing the weaknesses. This is especially true when it comes to generating fresh sources of income. Netflix’s platform allows for the integration of exclusive content, special events, and merchandising opportunities that can target a wider audience and retain the traditional viewer. WWE can leverage this to not only create additional revenue but also enhance its profitability through various means. Conversely, the deal faces several threats due to the constant competition from various streaming platforms, such as Disney+, Amazon Prime, Hulu, and Paramount+, for exclusive content. For example, these competitors can enhance their offerings, which could potentially overshadow WWE’s presence on Netflix and impact its potential success.
To address these dynamics for their strategic partnership, WWE and Netflix must be able to deliver content and leverage various aspects of their businesses. WWE should focus on enhancing the viewer experience by developing interactive features and exclusive content that make the Netflix experience uniquely engaging. Netflix should invest in leveraging the WWE fan base by offering bundled deals or exclusive promotions tied to WWE content. For the next decade, we must address the various strengths, weaknesses, opportunities, and ongoing threats that this partnership will present. Both parties have the potential to establish a partnership that benefits each other, enhancing the entertainment experience for viewers and fostering growth in the foreseeable future.
RESOURCES:
Legentil, C. (2024, January 3). Netflix to become New Home of WWE “raw” beginning 2025. About Netflix. https://about.netflix.com/en/news/netflix-to-become-new-home-of-wwe-raw-beginning-2025
Mahjouri, S. (2024, January 23). WWE Raw moves to Netflix: Monday night brand gets “long-term partnership” with streaming giant beginning 2025. Cbssports.com. https://www.cbssports.com/wwe/news/wwe-raw-moves-to-netflix-monday-night-brand-gets-long-term-partnership-with-streaming-giant-beginning-2025/
Netflix to become New Home of WWE “raw” beginning 2025. (n.d.). About Netflix. Retrieved May 21, 2024, from https://about.netflix.com/en/news/netflix-to-become-new-home-of-wwe-raw-beginning-2025
Otterson, J. (2024, January 23). Netflix, WWE strike deal to move ‘Monday Night Raw’ to streamer beginning in 2025 for $500 million per year. Variety Daily. https://variety.com/2024/tv/news/netflix-wwe-monday-night-raw-deal-january-2025-1235882820/
Weprin, A. (2024, January 23). Netflix nabs WWE ‘raw’ rights in major $5B deal. Hollywood Reporter. https://www.hollywoodreporter.com/business/digital/wwe-raw-moving-to-netflix-2025-streaming-push-live-sports-1235804139/
DeShawn Ellis 