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Sports entertainment and media companies World Wrestling Entertainment (WWE) (WWE -1.23%) Exclusive streaming relationship with Peacock – part of it Comcastof (CMCSA -1.01%) NBCUniversal Section – Since Spring 2020.The deal gives Peacock premium subscribers access to WWE’s extensive catalog of classic wrestling matches and the ability to watch live events such as Royal Rumble, WrestleManiaand Summer Slam. However, WWE’s weekly live show, raw and smack down, Still debuting on linear television, it only arrived at Peacock a day later.
During WWE’s second-quarter investor conference call, co-CEO Nick Khan said the company is open to the idea of ​​transferring the broadcast rights. raw and smack down Streaming. That’s why forging a closer relationship is a smart move for both WWE and Peacock.
The linear TV landscape is changing
WWE last negotiated raw and smack down 2018 deals. raw Airing on USA Network, also owned by NBCUniversal, the deal is reportedly worth $1.3 billion over five years. Fox’s FOX Webcast smack down In an arrangement worth about $1 billion, the same is for five years.
raw attracts approximately 2 million live viewers per week during its three-hour run, while smack down Attracts about 2 million people during its two-hour weekly broadcast. For comparison, these numbers are within the average viewership range for a National Basketball Association game. However, with cord-cutting on the rise and some pundits expecting a drop in live TV ad spending over the next few years, this could be the right time for WWE to move its flagship weekly show to Peacock.
WWE is no stranger to the streaming world
WWE first entered the US streaming market in February 2014 through the WWE Network. Within a year, the WWE Network had over 1 million subscribers. But despite a promising start, it has struggled to grow. Its US user base peaked at about 1.9 million in 2017.
When WWE signed a deal with Peacock in early 2020, the WWE network had only 1.1 million subscribers. An estimated 1 million of them subsequently moved to Peacock. However, a year after the deal went into effect, Khan revealed that more than a third of Peacock’s premium subscribers watched WWE content.
Streaming services are embracing live content
As Khan pointed out on WWE’s investor call, streaming company “Desire” for high-quality live content.executive citation apple$2.5 billion contract with Major League Soccer Amazon$11 billion deal with the NFL. As a provider of live programming, Khan went on to say that WWE is in a unique position because it attracts a large audience and operates year-round.
For NBCUniversal, its longstanding relationship as a partner of WWE Networks and Raw would certainly put it in a strong position if the time came for WWE to decide to pivot entirely to streaming.As Khan said on the earnings call, “We always [NBCUniversal] The first is about whatever is going on. “
Peacock has a relatively low operating budget
Comcast reported that Peacock had 13 million premium customers at the end of the second quarter of 2022 — the same number it had three months earlier. The potential to attract millions of additional viewers through live WWE weekly programming is certainly an attractive prospect for Comcast — depending on how much such a deal would cost.
NBCUniversal has reportedly spent more than $1 billion securing Peacock’s WWE network rights through 2025. Considering that WWE made more than $2.3 billion the last time it sold the TV rights to Raw and SmackDown, it’s reasonable to wonder if NBCUniversal is interested in spending heavily on making both shows unique to Peacock.But as Khan pointed out, the peacock’s major streaming competitor Billions of dollars are already being spent on premium live content every year.
Should WWE decide to change? raw and smack down For streaming only, Peacock does a good job securing rights. Pro wrestling, by its very nature, is scripted, which means that the feuds and storylines presented to audiences often go on for months or even years. In a world where subscribers can, and do, cancel and add to streaming services on a monthly basis, WWE live content can bolster Peacock’s stickiness — and its growth.
John Mackey, chief executive of Amazon subsidiary Whole Foods Market, sits on The Motley Fool’s board. Tom Wilton No positions in any of the above stocks. The Motley Fool has positions at Amazon and Apple and recommends them. The Motley Fool recommends Comcast and World Wrestling Entertainment, and recommends the following options: March 2023 $120 long-term Apple, March 2023 $130 Apple.variegated fools have one Disclosure Policy.
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