Some people are questioning Netflix right now, but TKO CEO Ari Emanuel isn’t one of them. In fact, he pointed to WWE’s performance on the platform as one of the biggest reasons he’s so confident in the partnership.
Speaking with CNBC, Emanuel was asked about concerns over Netflix’s slowing engagement after a recent analyst downgrade. He wasn’t buying it, arguing that Netflix is still the first place people go for premium content. Emanuel rattled off several upcoming Netflix projects before making it clear he doesn’t understand why people are suddenly so negative about the platform.
“When we all go on streaming now, right, appointment, first one you plug in and look at is Netflix. Coming up, they have David Fincher’s new movie with Brad Pitt. They have Mosquito Bowl. They have Ink with Danny Boyle. The Gentleman was incredible. Their football situation that they just had on launch I thought was unbelievable.
There are ups and downs, yeah, in the television business. They are appointment television. You have to check in with them. And right now, okay, people can point to it. I think there’s incredible content coming up. That being said, I think at all the places there’s competition. I think at all the places there’s great television and they have great television. I don’t understand the conversation.”
When the interviewer brought up Netflix’s recent downgrade, Emanuel doubled down, saying it didn’t make much sense to him considering the company had been receiving positive attention not long before.
“I don’t understand the downgrade because I think a week before there was kind of an upgrade on Netflix. So I don’t know. I think Netflix is appointment television.”
Mark Shapiro echoed those comments, saying Netflix continues to evolve by investing in sports, podcasts, creators and premium programming. From TKO’s perspective, he believes the platform is still one of the strongest players in streaming.
“The truth is, to Ari’s point, they have great premium quality content. In the same way you’re going to go to ESPN or you’re going to go to Paramount Plus if you’re looking for sports, you’re going to go to Netflix first and foremost when you turn on the tube. It’s long form.
Now they’re getting into the influencer space and the podcast space and the talk space and the sports space. I mean, they really have it all. And they’re making the investment, spending more money, and they’re listening to their viewers.
And we think the engagement is incredibly strong, and they’re willing to experiment with new models and new creators and new models. So it’s really first stop for us.”
The conversation eventually shifted to WWE, with Emanuel using the company’s own partnership with Netflix as an example of why he’s so optimistic. While he didn’t reveal specific numbers, he said WWE has seen significant international growth since joining the service.
“I mean, we have the WWE with them. And it’s, I don’t know, it’s up significantly with them on an international basis. We’re happy about that relationship. They’ve been incredible partners. I don’t know. I think they’re an incredible platform.”
Shapiro followed that up by pointing to Monday Night RAW as proof that Netflix isn’t afraid to try something new. According to him, taking on a weekly live wrestling show was a completely different kind of investment, but one the company was willing to make.
“And that’s the kind of chance we’re talking about. Like, they actually went in on WWE Raw. That was a completely new space for them, which is on Monday nights and it’s global.”
The executives also dismissed concerns about YouTube’s growing dominance, arguing that Netflix is playing a different game by focusing on premium long-form content while continuing to branch out into new formats.
“Look, they’re growing their business with the AVOD platform. They’re continuing to commit to more premium content. They’re getting significantly into the sports space. I think the engagement thing is getting blown up. Yes, YouTube’s a great player. Yes, YouTube is mostly short form, by the way, and it’s creator economy. What they’re doing is completely different.”
Emanuel added that Netflix is already adapting to changing viewing habits by expanding into other areas, including podcasts.
“And also they’re combating that with their, now they’re putting podcasts on. They’re going into the space that needs that.”
For WWE fans, the biggest takeaway is that TKO has no concerns about its relationship with Netflix. If anything, Emanuel’s comments suggest the company believes the partnership is getting stronger, particularly with WWE’s international audience.
Netflix’s WWE era is still relatively new, but TKO clearly likes what it’s seeing so far. Do you think the move has been a success, or is there still more WWE can do to make the most of the partnership? Let us know in the comments below.
This transcript was produced exclusively for Ringside News from the original recording. Republishing the transcription in full is prohibited. When using excerpts, provide prominent credit and a link to this article.
