Mark Shapiro talks Netflix deal, TKO advertising, more

[Chris]

While most of the headlines coming out of Mark Shapiro's Wednesday comments have revolved around Vince McMahon, the TKO COO did reveal an interesting fact about the initial WWE/Netflix talks.

Speaking at the Morgan Stanley Technology Media & Telecom Conference, Shapiro said that in the company's talks with the streaming giant, NXT was the original point of discussion.

The two sides eventually came to a five-year, $5.2 billion deal to bring Raw to Netflix domestically starting in January 2025 in addition to all WWE programming, including PLEs, to Netflix internationally.

Shapiro said with the deal, they "cracked the code" with bringing live sports to Netflix and that the partnership alone "de-risked" the UFC/WWE merger that spawned TKO.

Shapiro is bullish on the deal that was driven by WWE CEO Nick Khan and TKO CFO Andrew Schleimer, mainly because of his confidence in Netflix's marketing. He specifically mentioned WWE being highly visible when users log in to the service. He said it's a good neighborhood to be in with Netflix and WWE, NBCUniversal and WWE, and UFC with Disney/ESPN.

He said the plan with Netflix is to be "very innovative" with the partnership, but that things are in the laboratory phase with possibilities. He wants to bring innovation to the deal with new technology, discussing how when he was with ESPN, they did the same with any new properties that came to the network.

"Netflix is very incentivized to bring the same technology innovation and disruption to WWE and we welcome it," he said.

Other notes:

• Shapiro said they have not yet made a combined sponsorship pitch for WWE/UFC deals, but the team to do that just came into place in January so it's early. He has a lot of confidence they will be able to grow the WWE sponsorship money in the same way they did with UFC, but possibly quicker given WWE's "best in class" standing.
• To that end, he reiterated they will focus on activating advertising inside the arena and that McMahon didn't do things like selling ads on the mat. He did say that UFC's ads on the Octagon mat are "arguably too muddy."
• He said the recent Anaheim WWE/UFC weekend was a great test for their dual threat approach of holding two shows in one venue and loved the "unplanned synergy" of athletes from both brands appearing on the other. They will look to replicate that, but it will be more of a long-term play with select situations.
• He added that WrestleMania will see a big influence from WME (Endeavor's talent agency) with "big celebs" coming.

https://www.f4wonline.com/news/wwe/wwe-initially-met-with-netflix-about-nxt-mark-shapiro-raw

 

[Chris]

Even though they have closed the book on WWE Raw's next TV home, TKO leadership is already gearing up for their next big payday: the domestic rights package for WWE's monthly premium live events.

Speaking at the Morgan Stanley Technology Media & Telecom Conference, TKO COO Mark Shapiro said that the current five-year deal with NBCUniversal to air the PLEs on Peacock is "underpriced."

He didn't blame either WWE or NBCU, saying that "the market catches up" but that the monthly events are "massively performing" for NBCU and higher than the expectations NBCU leadership had when they signed the deal.

Shapiro stated there is "insatiable demand" for the rights when they come up in 2026 and that they will look to renew with NBCU who has been a great partner who knows how to market WWE.

However, it will be a "hotly-contested property."

In April 2023, WWE CEO Nick Khan said the timing of the rights coming up was "interesting" to them.

In January 2021, WWE announced that WWE Network would be heading to the Peacock streaming service in the U.S., later revealed as a five-year deal in the ballpark of $1 billion total.

When asked about whether Netflix would be interested in bringing on the domestic rights given they will have the international rights starting in January 2025, Shapiro said that with Netflix, Apple and other providers, the conversations always started with the question of when the PLE deal was up.

He said they want to walk before they run with Netflix, get out of the gate strong with Raw, and see how things go before talking about the domestic PLE rights if NBCUniversal doesn't renew.

That wasn't the only newsworthy comment Shapiro made at the conference, answering questions about Vince McMahon's recent stock sale in addition to the interesting fact that Netflix was originally interested in NXT.

https://www.f4wonline.com/news/wwe/tko-executive-insatiable-demand-exists-for-underpriced-domestic-wwe-ple-rights

 

[Dale]

I guess that Billion for 5 years does look quite cheap now in comparison

Curious to know more about the new technology and being very innovative with the Netflix stuff though

 

[Dale]

Early this year, I wrote that with the union of WWE and UFC under TKO Holdings, those two relatively dissimilar properties would become more analogous -- at least when it comes to sponsorship.

It's now time to detail the first deal illustrating that notion.

WWE has signed what’s believed to be its first spirits sponsorship, a deal with Sazerac Brands’ Wheatley Vodka. Under the deal, Wheatley becomes the "Official Vodka of WrestleMania XL," which will be held the first weekend of April at Lincoln Financial Field in Philadelphia. Along with WrestleMania, WWE’s top tentpole attraction, the deal also covers a handful of other events on the wrestling circuit.

Until now, WWE generally did not do long-term "official sponsor" designations, as most brands were looking for deals in specific time periods. Under TKO, that is changing. This new deal includes live-event brand integrations on both nights of WrestleMania XL, inclusion in the event’s Kickoff Show, social/digital media executions and a sweepstakes promo.

Wheatley will also be presenting sponsor of a yet-untitled, six-part content series on WWE social/digital channels featuring WrestleMania headliner Cody "The American Nightmare" Rhodes interviewing other WWE stars. A Wheately-branded tour bus will be in the series.
​

Stocking the bar​

WWE had alcoholic beverage sponsorships with various beer brands, and Mike’s Hard Lemonade will return as a SummerSlam sponsor. But this is the circuit’s first spirits deal.

As detailed earlier this week, when it signed a new sponsorship with 19 Crimes, the umbilically connected UFC has a bar full of spirits sponsorships.

"Our strategy now at TKO is to open up new categories and sign bigger, broader deals," said Grant Norris-Jones, EVP and head of global partnerships at TKO. "We’re out in the market looking hard for an official beer partner [for WWE]."

UFC signed what it termed its biggest sponsorship ever in October with Bud Light. “Now, we’re opening up more assets and leveraging more platforms. ... If they want to have a CBD partner like UFC’s [Love Hemp], they can. Our risk tolerance will be equal. And we helped prove they weren’t risky."
​

Tag team effort​

In the offing: the first deal across the two properties (guessing I won't be permitted to call that a TKO, right?). “If we’re going to be competitive against the NBAs, NFLs and NHLs, we have to customize that to the specific partner," Norris-Jones said. "Demand and supply [for a combined UFC/WWE package] are there, but for the first one, we’ll have to enter the market with the correct statement for it to be optimal."

Dozens of joint pitches have already been made. Could the winning alchemy be rights for UFC 300 (set for April 13) combined with WrestleMania XL (April 6-7) -- arguably some of the biggest events ever for either property? Proof of concept is still necessary, but it’s surely what the debt-laden owners at Endeavor are dreaming about.

Endeavor acquired controlling interest in UFC for $4 billion in 2016, combining the two properties after acquiring WWE last April, in a deal which valued WWE at $9.3 billion.

TKO adds WWE's first spirits sponsor; First combined WWE-UFC deal still to come

Now under the TKO Group umbrella, WWE has signed a deal in the spirits category ahead of WrestleMania. A combined WWE-UFC sponsorship deal in other categories is still something being worked on by TKO.

www.sportsbusinessjournal.com