The financial viability of WWE’s significant streaming partnerships, including its agreement with Netflix and ongoing relationship with Peacock, is under examination, with recent analysis suggesting these deals may not be delivering expected new viewership growth. Dave Meltzer, speaking on Wrestling Observer Radio, voiced concerns about WWE’s media rights strategy and the actual returns for streaming platforms, especially highlighted by the performance of WWE Backlash on Netflix.
Meltzer pointed out that both WWE and UFC are aiming for substantial increases in their media rights fees, potentially upwards of 70 percent. However, he questioned the economic rationale for the platforms.
Quite frankly, what UFC wants—and even more what WWE wants—does not make economic sense to the buyer. I mean, it depends on the buyer and all this… Peacock was already, which is a giant money-loser, overspending on the WWE thing, and the idea of trying to get a 70% increase there… The stock price is counting on that 70% increase. And quite frankly, it doesn’t make economic sense.
The performance of WWE Backlash after its debut on Netflix served as a specific point of concern for Meltzer regarding new audience acquisition.
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When I saw the lack of number [for WWE Backlash on Netflix]… I mean, it appears to me that nobody watched Backlash that doesn’t already watch RAW every week.
This observation leads to questions about the value such premium live events bring to subscriber-based services if they primarily cater to existing fans who are likely already subscribed.
If you’re a subscriber-based thing—they’re already subscribing. For WrestleMania, that could be different. But I don’t know that it’s worth [what they’re paying].” Even the RAW number honestly doesn’t make sense to me for $500 million a year. It’s just way more than they’re deriving from the content.
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