In today's Finshots, we look at Netflix’s move to broadcast WWE live shows and what it could mean for subscribers, advertisers, and the WWE fanbase.

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The Story

Netflix is stepping into the wrestling ring. Not quite literally, but the streaming giant is bringing the high-octane, action-packed world of WWE (World Wrestling Entertainment) straight to your screens. And guess what? It’s a big deal. The streaming giant has clinched a 10-year deal to stream WWE’s flagship show, Raw, and other live events starting in 2025. And it has shelled out over $5 billion for these rights.

If you’re wondering where WWE shows used to stream, here’s the scoop. In the US, Raw was on cable TV’s USA Network. And in India, fans watched it on Sony TV or the SonyLIV app for two decades. But now, all that’s changing.

Because starting in April, Raw will stream exclusively on Netflix in the US. And in India, WWE will end its long partnership with Sony by March and shift entirely to Netflix.

This is a big shift, especially since Netflix’s co-CEO, Ted Sarandos, once said that spending big money on sports rights wasn’t their cup of tea. He believed traditional sports deals, designed for cable TV, didn’t suit Netflix’s streaming model.

So, why this sudden love for sports from Netflix now?

You see, back in 2022, Netflix shook things up by launching an ad-supported subscription plan in the US, offering a budget-friendly alternative for viewers. This plan was designed to attract more viewers who might not want to pay as high as the regular ad-free version and might have hesitated to subscribe otherwise. And it worked! This ad-supported plan now accounts for over half of Netflix’s new sign-ups in areas where it’s available.

But the twist here is it wasn't just about cheaper subscriptions and drawing in more subscribers. The ad-supported plan also opened the door to the thriving ad market. And because advertisers want to put their money where the eyeballs are, they love live sports. Why? Because nothing grabs attention quite like live sports.

Think about it. Unlike movies or shows that people can watch later, sports – whether it’s a wrestling match, a football game, or a World Cup final – they have to be watched live. That’s where all the urgency and excitement is. And it’s a goldmine for advertisers who want to reach millions of viewers at once.

Netflix also realised that live sports are some of the biggest crowd-pullers. With 283 million subscribers worldwide and a massive $17 billion annual content budget, adding live events to the mix is a no-brainer. That’s why Netflix sees sports as a way to keep existing viewers hooked while pulling in new ones who might not be into their usual shows and movies.

And it’s not just about ad revenue. It’s about staying competitive and relevant, too. Other streaming platforms like Amazon Prime and Disney+Hotstar have already jumped on the live sports bandwagon. Netflix can’t afford to be left behind.

But this isn’t the first time Netflix has taken a big gamble on sports.

In 2024, Netflix streamed two NFL games on Christmas Day, and it was a massive hit! That quarter, Netflix gained 18.9 million new subscribers. It also streamed the highly anticipated Jake Paul vs Mike Tyson boxing match, which drew 108 million viewers globally. It brought in the highest number of new sign-ups in a single day. And now, Netflix even has the rights to stream the FIFA Women’s World Cup in 2027 and 2031.

But of course, there are challenges.

Live sports could be a tricky business. It’s expensive, and Netflix’s gamble with WWE isn’t without risks.

First, WWE has millions of fans in India, especially in Tier 2 and Tier 3 cities. These are regions where accessibility and low costs have always been key. Fans are used to catching their favourite wrestling matches on cable or the much cheaper SonyLIV app. So, with Netflix’s higher pricing, this shift could probably leave behind a chunk of WWE’s loyal Indian audience.

Then there’s the fact that Netflix has been steadily hiking its prices in some regions, particularly in the US markets. Hardcore WWE or NFL fans might justify the cost of exclusive access to major events on Netflix. But casual fans might not be as convinced. This could affect viewership numbers even further.

Finally, things are getting messy with this deal. WWE fans love their matches, but now they’ll have to wrestle with confusion. Here’s the problem. WWE’s flagship show, Raw, is moving to Netflix, but SmackDown is staying on the USA Network, and NXT is heading to CW. So, three big shows, three different platforms and it could feel like a treasure hunt but without the fun. Sure, hardcore fans might make the effort. But casual viewers might again just tap out. Plus, Netflix subscribers might wonder why they’re not getting the full WWE experience.

And let’s not forget the fact that live sports aren’t easy to stream. Millions of people might log in at once, and if there are any glitches, it could ruin the experience for viewers and upset advertisers.

So yeah, the stakes are high.

With 12 million subscribers in India, Netflix sees WWE as an opportunity to grow its user base. It’s banking on WWE’s loyal fans to sign up in droves. But if it wants to make this work, WWE will have to bring some serious exclusive content to the table. Something that makes Netflix the ultimate destination for fans. Without that, this whole deal risks falling flat on its face.

So the big question is, can Netflix pull off the balancing act of keeping WWE’s existing fanbase happy while also attracting a whole new crowd? Or will this move end up as just another botched finish?

Until then…

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