Netflix to stream WWE's Raw starting next year in its biggest jump into live entertainment

• Netflix and TKO Group Holdings said Tuesday that the streaming platform will air the WWE's flagship program Raw starting next year.
• Netflix is trying to drive revenue by cutting down on subscription sharing and pushing viewers toward its ad-tier membership.
• The streaming platform is making its first major foray into live sports, while WWE will get access to Netflix's roughly 250 million global subscribers.

Netflix and TKO Group Holdings said Tuesday that the streaming platform will air the WWE's flagship program Raw starting next year, in Netflix's first major foray into live sports.

The 10-year deal is valued at more than $5 billion, according to a company filing. Netflix will have the option to exit the deal after five years and to extend it for another decade. The streaming platform will be able to stream Raw globally, and will start the agreement with exclusive rights to it in the U.S., Canada, U.K. and Latin America.Netflix will also become the home for all WWE shows and specials outside the U.S., including SmackDown and NXT as well as WrestleMania, SummerSlam and Royal Rumble.

TKO shares spiked more than 20% in premarket trading following the news and a separate announcement that actor and former wrestling superstar Dwayne Johnson would join its board of directors. Netflix shares rose more than 1%, hours before the company was set to report earnings after the bell Tuesday.

Netflix, which is trying to drive revenue by cutting down on subscription sharing and pushing viewers toward its ad-tier membership, has made few attempts at live programming in its history. Adding Raw, which currently airs on USA Network and produces three hours of live programming per week year round, to its programming lineup will be a boon