Just a few years in the past, Netflix fine-tuned its formulation for achievement: unique content material, no reside TV, no adverts, and an unmatched library of films and collection that it might probably air throughout the globe. As lately as final yr, it largely caught to that plan. But because the streaming wars have advanced, the corporate has more and more welcomed different peoples’ motion pictures and exhibits onto its platform. And after dabbling in livestreaming with a Chris Rock particular, a brand new take care of WWE to stream Monday Night Raw for the subsequent 10 years exhibits simply how completely Netflix has rewritten its personal rulebook.
Today, Netflix introduced it is going to be the brand new house of Raw starting in 2025. The deal will reportedly value Netflix $5 billion over its lifetime. Coupled with a current enhance within the variety of exhibits its licensing from sometimes-competitors, and its current introduction of ad-supported tiers, the transfer demonstrates that Netflix’s new recipe appears to be like extra like: unique content material, outdated episodes of Suits, and even sports activities—or at the least, the “sports entertainment” that WWE focuses on.
Netflix’s play right here could be very on development. For months now streaming providers have been vying to fill up on reside sports activities choices. Amazon guess huge—like $1 billion per yr for 11 years huge—on the NFL’s Thursday Night Football video games. Apple TV+ is all in on Major League Soccer. Hulu, as a result of it shares a mum or dad with ESPN, has been providing sports activities by way of Hulu + Live TV. Last fall, Max introduced a partnership with Bleacher Report to supply a sports activities add-on that enables customers to observe the video games Warner Bros. Discovery gives by way of its TBS and TNT community (learn: NBA and NHL video games). This yr’s Super Bowl can be streamed on Paramount+. The listing is lengthy.
Sports, nevertheless, are simply a part of the about-face Netflix is pulling—and it’s not the one one. In the early years of streaming, Netflix grew its subscriber numbers with assist from content material it licensed from different studios: The Office, Friends. In response to these studios forming their very own streaming providers—and to get round international licensing points—Netflix went full-throttle on originals.
Last yr, that tide turned again. Warner Bros. Discovery licensed HBO exhibits like Insecure and Six Feet Under to Netflix. Disney licensed some exhibits to the streamer too. And Netflix wanted them. Netflix spends roughly $17 billion on content material, each unique and licensed, per yr, however quite a lot of the hours spent watching are nonetheless spent on licensed properties. Netflix originals have gained floor in recent times, comprising 53 % of complete collection viewing time on the platform in 2022, up from 22 % in 2017. But unique content material is extra of of venture than a identified amount like Suits, and Netflix-produced motion pictures specifically have had a blended report of success.
Going into 2024, it appears to be like as if licensing is “in vogue again,” as Warner Bros. Discovery content material gross sales head David Decker informed The New York Times. Studios bought cash for his or her exhibits, Netflix bought these exhibits in entrance of viewers. John Mass, president of funding fund Content Partners, informed The Los Angeles Times in December that the streaming wars had been over, “and Netflix has come out on top.”