Netflix Strikes $5 Billion Deal with WWE to Stream Weekly Show Raw

In a groundbreaking move, Netflix has announced a 10-year deal with the WWE wrestling federation to exclusively broadcast their popular weekly show, Raw. This deal, valued at over $5 billion, marks a significant shift for the program, as it will no longer be aired on traditional linear television starting in 2025.

The streaming giant will hold exclusive rights to air Raw in the United States, Canada, the United Kingdom, and Latin America. This strategic partnership underscores Netflix's commitment to diversifying its content offerings and expanding its audience reach.

While Netflix's stock is performing strongly, with an increase of over 30% in the past year, rival companies such as Amazon and Disney are experiencing a slight decline in their shares following this announcement.

To further enhance profitability, Netflix has taken measures to curb password sharing and introduced an advertising-supported membership tier. Although previously stating their disinterest in live sports, Netflix's latest move towards securing streaming rights for professional wrestling hints at a potential foray into the sports broadcasting landscape.

Analysts have differing opinions regarding the future trajectory of Netflix's stock. Citi suggests exercising caution and temporarily halting investments, while Oppenheimer believes there is still a 22% potential upside. The market eagerly awaits Netflix's earnings report, set to be released later today.