Netflix is ramping up its investments in live programming with a new deal for WWE wrestling rights, and working to expand its ad business as it continues to add new customers at a rapid clip.
The Wall Street Journal reports the streaming giant added 13.1 million subscribers in the fourth quarter—its strongest final quarter ever for net additions—after attracting 7.7 million new customers during the same period a year earlier. That robust subscriber growth is a sign that its global crackdown on password sharing was a success, with the company telling shareholders that paid sharing is now the norm.
Revenue increased 12.5% from a year earlier, to $8.8 billion in the final quarter of 2023, beating its expectations. Net profit rose to $938 million in the fourth quarter, missing the company’s forecast of $956 million.
The company said its priorities include broadening its entertainment offerings, from live events to sports-related content and games. Netflix ended the year with 260.28 million subscribers, up more than 12% from a year earlier. Shares rose more than 5% in aftermarket trading.
On Tuesday, the company inked a 10-year, $5 billion deal with TKO Group Inc. that will see the streamer air WWE’s popular “Monday Night Raw.” Starting in January 2025, Netflix will also become the international home of all WWE content in the U.S., Canada and Latin America, with additional regions to be added over time. That includes “Raw” as well as other weekly shows “Smackdown” and “NXT” and premium live events including “WrestleMania,” “SummerSlam” and “Royal Rumble.”
Netflix’s push into livestreaming offers an opportunity for more regular, appointment viewing on the platform, which is attractive to both advertisers and subscribers. It takes a page from the TV networks Netflix has started to replace as the streamer works to become the main source of households’ entertainment.
Netflix will also gain international rights to other WWE shows including “Smackdown” and “NXT,” and other large events such as “WrestleMania.” NBCUniversal’s USA Network is the current rightsholder for Raw, with a five-year deal valued at more than $1.3 billion that doesn’t include international rights.
Netflix’s head of content, Bela Bajaria, said “Raw” is the “best of sports entertainment” and adding it to the service would “deliver more joy and value for their audiences and our members.”
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