A couple of years in the past, Netflix fine-tuned its formula for success: authentic content material, no dwell TV, no adverts, and an unmatched library of flicks and sequence that it will possibly air across the globe. As not too long ago as final yr, it largely caught to that plan. But because the streaming wars have advanced, the corporate has more and more welcomed different peoples’ motion pictures and reveals onto its platform. And after dabbling in livestreaming with a Chris Rock special, a brand new cope with WWE to stream Monday Night Raw for the subsequent 10 years reveals simply how totally Netflix has rewritten its personal rulebook.

Today, Netflix announced it will likely be the brand new dwelling of Raw starting in 2025. The deal will reportedly cost Netflix $5 billion over its lifetime. Coupled with a recent increase within the variety of reveals its licensing from sometimes-competitors, and its latest introduction of ad-supported tiers, the transfer demonstrates that Netflix’s new recipe appears extra like: authentic content material, outdated episodes of Suits, and even sports activities—or no less than, the “sports entertainment” that WWE makes a speciality of.

Netflix’s play right here may be very on pattern. For months now streaming providers have been vying to stock up on dwell sports activities choices. Amazon guess large—like $1 billion per year for 11 years large—on the NFL’s Thursday Night Football video games. Apple TV+ is all in on Major League Soccer. Hulu, as a result of it shares a mother or father with ESPN, has been providing sports activities through Hulu + Live TV. Last fall, Max introduced a partnership with Bleacher Report to supply a sports activities add-on that enables customers to observe the video games Warner Bros. Discovery gives by means of its TBS and TNT community (learn: NBA and NHL video games). This yr’s Super Bowl shall be streamed on Paramount+. The record is lengthy.

Sports, nevertheless, are simply a part of the about-face Netflix is pulling—and it’s not the one one. In the early years of streaming, Netflix grew its subscriber numbers with assist from content material it licensed from different studios: The Office, Friends. In response to these studios forming their very own streaming providers—and to get round world licensing points—Netflix went full-throttle on originals.

Last yr, that tide turned again. Warner Bros. Discovery licensed HBO reveals like Insecure and Six Feet Under to Netflix. Disney licensed some shows to the streamer too. And Netflix wanted them. Netflix spends roughly $17 billion on content, each authentic and licensed, per yr, however a substantial amount of the hours spent watching are nonetheless spent on licensed properties. Netflix originals have gained floor in recent times, comprising 53 p.c of whole sequence viewing time on the platform in 2022, up from 22 p.c in 2017. But authentic content material is extra of of venture than a recognized amount like Suits, and Netflix-produced motion pictures particularly have had a combined document of success.

Going into 2024, it appears as if licensing is “in vogue again,” as Warner Bros. Discovery content material gross sales head David Decker instructed The New York Times. Studios received cash for his or her reveals, Netflix received these reveals in entrance of viewers. John Mass, president of funding fund Content Partners, told The Los Angeles Times in December that the streaming wars have been over, “and Netflix has come out on top.”