For media and entertainment giants, an area that has had a proven track record of impactfully moving the revenue needle has been sports. We have seen this happening in the past when JioCinema set a world record with 32 Mn viewers tuning in for the IPL final in 2023. Even the astronomical cost of IPL rights in India highlights the advantage media companies have in attracting both viewers and advertisers.

Notably, OTT content spending in India surged by 52% in 2023 to INR 12,500 Cr, according to a joint report by FICCI and EY. This spending was primarily driven by sports rights values, which accounted for 51% of the aforementioned amount.

While early movers in the Indian OTT space, such as broadcaster-driven platforms SonyLIV and Hotstar (before its merger with Disney), aggressively built their sports content portfolios to secure market leadership, global streaming giant Netflix has largely remained distant from live sports.

But the tables turned in 2024, when Netflix ventured into the realm of sports, starting with two Christmas Day NFL games. This was followed by its high-profile partnership with World Wrestling Entertainment (WWE) and a major win in securing the US broadcast rights for the 2027 and 2031 FIFA Women’s World Cups.

The shift marks a significant departure from the stance taken by Netflix’s co-CEO Ted Sarandos, who, in December 2022, dismissed the profitability of big sports rights. However, he described live sports as a “fantastic thing” in the Q4 2024 earnings call.

“We are constantly trying to broaden our programming, and live events are one of those things and sports are part of those live events. So when I look at this and say, this is a really fantastic thing, but do we — but it doesn’t really change the underlying economics of full-season Big League sports being extremely challenging,” Sarndos had said.

Notably, WWE content debuted strongly recently on Netflix in the US, drawing about 5 Mn views in its first week itself, doubling the numbers from its linear TV days.

In India, Netflix is set to stream WWE content starting in April, taking over the media rights from Sony Pictures Network India (SPNI). Although cricket dominates sports viewership in the country, WWE, too, holds a special place in the hearts of the young.

WWE: A Move In The........

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