Netflix took a big step into live events yesterday with a more than $5 billion rights deal that would make it the exclusive home of World Wrestling Entertainment’s Raw from January 2025.

The 10-year partnership will put Raw on the streaming platform in the US, Canada, Britain and Latin America, among other territories, the companies said, according to a Reuters report yesterday.

Netflix will also exclusively telecast outside the US all WWE shows and specials, including SmackDown, as well as pay-per-view live events such as WrestleMania and Royal Rumble.

The streaming pioneer has an option to extend the deal for another 10 years or to opt out after the initial five years.

Netflix began experimenting with live events last year, with comedian Chris Rock’s stand-up special, ‘Selective Outrage’. It also has found success with sports-related programming, such as its Formula 1 racing documentary series, ‘Drive to Survive’, and the behind-the-scenes golf documentary series, ‘Full Swing’.

In October, it hosted its first live sports event, ‘The Netflix Cup’, featuring athletes from ‘Drive to Survive’ and ‘Full Swing’.

The company’s third-quarter investor letter hinted there might be more to come — signaling an evolution from CEO Ted Sarandos’s long held position that Netflix was “in the sports business”, focused on the drama of sport, but not live games.

“As we work to develop the best programming mix for our members, we’re also having great success with our sports shoulder programming, making Netflix the go-to place for anyone excited by the drama of sport,” the company said in its third-quarter note, “It’s another area where we can deliver enormous value for our members as well as rights holders and talent.”

Mark Shapiro, president of TKO, told Reuters that Netflix “threaded the needle perfectly”, by offering live sports programming that “comes with a spine of entertainment”.

The Raw deal marks Netflix’s first long-term bet on live events that appeal to a loyal, multi-generational base of fans who turn to WWE each week for bouts between the likes of CM Punk and Cody Rhodes. Unlike other professional sports, the competition is year-round and not seasonal.

(Wrestling image courtesy www.wwe.com)