01—Abstract
Summary
Summary of the 8-K filed January 23, 2024. Cited figures are marked; the original filing is the authoritative source.
On January 23, 2024, TKO Group Holdings, Inc. announced a long-term partnership between its subsidiary World Wrestling Entertainment, LLC (WWE) and Netflix, Inc. Beginning in January 2025, Netflix will become the exclusive new home of WWE's weekly show Raw in the U.S., Canada, U.K. and Latin America, among other territories, with additional countries and regions to be added over time.
Netflix will also become the home for all WWE shows and specials outside the U.S., including SmackDown, NXT, and Premium Live Events such as WrestleMania, SummerSlam and Royal Rumble, and WWE documentaries and original series will be available on Netflix internationally beginning in 2025. The agreement has an initial 10-year term for an aggregate rights fee in excess of $5 billiona, with an option for Netflix to extend for an additional 10 years and to opt out after the initial five years. Management stated the deal "locks in significant and predictable economics for many years." The filing notes Raw leaves linear television for the first time since its 1993 debut, and that Raw is currently the No. 1 show on USA Network with 17.5 million unique viewers over the course of the year.
The filing is furnished under Items 7.01 and 8.01, and the press release is incorporated as Exhibit 99.1. TKO's CEO Ariel Emanuel was scheduled to discuss the partnership in a CNBC interview the same day. The filing includes customary forward-looking statement cautions.
02—Key points
Key Highlights
- Netflix becomes the exclusive new home of WWE Raw in the U.S., Canada, U.K. and Latin America beginning January 2025, with more territories to be added over time.
- Netflix becomes the home for all WWE shows and specials outside the U.S., including Raw, SmackDown, NXT, WrestleMania, SummerSlam and Royal Rumble.
- The initial 10-year agreement carries an aggregate rights fee in excess of $5 billion.
- Netflix holds an option to extend the term for an additional 10 years and an option to opt out after the initial five years.
- Raw leaves linear television for the first time since its 1993 debut, marking a major programming shift.
- Raw is currently the No. 1 show on USA Network, with 17.5 million unique viewers over the course of the year.
- WWE documentaries, original series and forthcoming projects will be available on Netflix internationally beginning in 2025.
03—Questions
Frequently Asked Questions
What is the financial value of the Netflix agreement?
The agreement has an initial 10-year term for an aggregate rights fee in excess of $5 billion, according to the filing.
When will the Netflix partnership take effect?
Beginning in January 2025, Netflix will be the exclusive new home of Raw in the U.S., Canada, U.K. and Latin America, and WWE content will be available on Netflix internationally beginning in 2025.
Which WWE programming will move to Netflix?
Netflix will become the home for all WWE shows and specials outside the U.S., including Raw, SmackDown and NXT, as well as Premium Live Events such as WrestleMania, SummerSlam and Royal Rumble.
Does Netflix have flexibility to change the deal's length?
Yes. Netflix has an option to extend the agreement for an additional 10 years and an option to opt out after the initial five years.
What does management say the deal means for TKO?
TKO President and COO Mark Shapiro said the deal "locks in significant and predictable economics for many years" and "dramatically expands the reach of WWE."
04—Continue