WWE and Netflix partnership could drive international subscription growth and potentially increase revenue

From Nasdaq: 2025-01-10 22:19:00

Motley Fool analysts discuss the debut of Raw on Netflix, Tribal Combat rules, and WWE’s new investment opportunities. Alison Southwick and Robert Brokamp share portfolio tips for 2025. World Wrestling Entertainment’s stock is analyzed, with Motley Fool’s 10 best stock picks for investors. Monday Night Raw’s move to Netflix was a monumental TV event with star appearances. The transition to streaming could bring in new viewers globally, potentially restarting WWE’s long-term viewership growth despite cable declines. The platform change may attract a broader audience due to Netflix’s reach and accessibility. WWE and Netflix have struck a deal that will bring WWE content to Netflix, potentially driving international subscription growth. The WWE’s long-running storylines and dedicated fan base make it a unique viewing experience for new viewers. With Netflix integrating ads into WWE programming, there is a shift in the business model that could impact revenue for both companies. The 10-year, multi-billion-dollar deal between WWE and Netflix marks a significant move in sports broadcasting rights. Meanwhile, TKO Holdings also holds the rights to the UFC, adding another dimension to the sports media landscape. TKO Group is set to negotiate new deals for broadcasting rights as the ESPN deal ends this year. With UFC and WWE both generating revenue splits of about half, UFC’s move to ESPN has provided legitimacy to the sport. While Netflix is an option, Dana White may opt to stick with ESPN for the relationship and legitimacy it offers. Kingdom of Saudi Arabia’s interest in combat sports means more money for TKO Group through sponsorship revenue. TKO stock, though somewhat expensive, has potential with upcoming UFC and WWE deals for rights fees. UFC’s renegotiation later this year and WWE’s US rights up for renewal in 2026 could bring significant revenue for TKO. Robert Brokamp: Once you have your cash situation sorted, it’s time to evaluate your portfolio. Decide if you’re happy with your current investments or if you need to make changes. Consider if you want to invest in individual securities or stick to mutual funds or index funds. This is a good time to make these decisions as you start the new year fresh. Starting with cash and then moving on to your investments will set you up for financial success in the new year. Make sure to evaluate your portfolio regularly to ensure you’re on track to meet your goals. To determine the right mix of stocks and bonds for your portfolio, consider target date funds, which gradually adjust your investments as retirement approaches. Funds for 2025 have a 46% stock and 54% bond allocation, while 2045 funds have 85% stocks and 15% bonds. If you prefer more control, consider Robo-advisors or hiring a financial advisor. Bonds have not been great investments recently, but with a 10-year treasury yielding 4.6%, they are worth considering for predictability. Individual bonds offer more certainty than bond funds, but target maturity bond ETFs are a good option. For long-term wealth creation, consider investing in the stock market through index funds. Index funds are a great choice for building a portfolio due to their low costs and consistent performance. While actively managed funds often fail to beat index funds, individual stocks can offer higher returns but also higher risk. When selecting account types for investments, consider tax advantages and withdrawal penalties. For retirement savings, prioritize 401(k) or IRA contributions. For education savings, choose between a 529 or Coverdell account based on contribution limits and investment options. Use new contributions to rebalance your portfolio and achieve your financial goals effectively. In a recent financial podcast, experts discuss the importance of diversification in investment portfolios. They recommend a mix of index funds, actively managed funds, individual stocks, and target date funds to balance risk and potential returns. Some investors are shifting from individual stocks to index funds for more diversification, while others are moving in the opposite direction to take a more active role in managing their portfolios. The key is to try different avenues and let your interests, available time, and results guide your investment strategy. Remember, it’s not about choosing one approach over another, but finding what works best for you.

Please note that the individuals on the program may have personal interests in the stocks discussed, and The Motley Fool may have formal recommendations for or against them. Always make investment decisions based on your own research and consult with financial advisors if needed. Remember, the views expressed in the podcast are those of the author and may not align with Nasdaq, Inc.



Read more at Nasdaq: An Investor’s Take on the WWE-Netflix Partnership