TKO President Mark Shapiro commented on WWE’s new five-year agreement with ESPN, which will see WWE pay-per-view events stream on ESPN’s upcoming direct-to-consumer platform beginning in 2026.
Speaking during the company’s earnings call on Wednesday, Shapiro explained that while TKO could have secured a “slightly higher” rights fee elsewhere, they ultimately chose ESPN due to the strength and reach of its brand.
Shapiro also addressed the decision not to partner with Netflix for the pay-per-view events, despite the existing deal for RAW, citing strategic considerations behind the move.
You can check out some highlights from the media call below:
On choosing ESPN over Netflix for the PPVs: “First off, I think we’ve been consistent in our messaging to you, that we were always a little reticent about having all of our eggs in one basket. Don’t get me wrong, when you’re doing these deals, you’re balancing monetization, right? Of the asset and the opportunity, with, of course, reach, with regard to our brand and our audience. So, that certainly played a factor. When we had went into the market, at roughly the same time, we began talking with interested parties in the UFC. We had strong interest because more than anything else, these are monthly, big events, and we’re now, frankly, living in the big event era if you will.”
On the value of the ESPN brand: “I would just tell you, when all was said and done, we could have actually had a slightly higher rights fee by going with another partner. But we felt the strength of ESPN’s brand, their reach, the platform, the makeup of their audience and their D.T.C. strategy, which is launching soon here, was just as important as the dollars and we’ve been consistent with our approach in our messaging to you. Ultimately, we’re sitting here with a five-year deal, annual escalators, high-margin revenue stream with attractive visibility and stability. Deflative programming that are the PLEs and Nick Khan and Triple H have done such an amazing job taking the baton from Vince McMahon.
“These PLEs are purpose-built for direct-to-consumer services. We will stream all 10 PLEs over the course of a year… The idea of having a Money in the Bank, a SummerSlam, a WrestleMania, take your pick from our PLEs, with the first hour or even two simulcast on ESPN linear and the D.T.C. which is a handoff to their direct-to-consumer. You just can’t beat that proposition, and of course, that’s driven by the fact that ESPN’s linear platform is absolutely unmatched in the industry.”
On Ari Emanual: “Of course, Ari Emanuel, and I have to say, UFC doesn’t happen without Ari Emanuel, and WWE for that matter doesn’t happen without Ari Emanuel driving that. He’s a significant value creator, and he spends a lot of time out there leveraging his relationships on what’s around the corner that might fit — of course, has to be treated and we have to be proven — but might fit squarely into our sports pure play model.”
On WWE SummerSlam turning into WrestleMania: “Our SummerSlam was the most viewed we’ve ever had in history. So quickly, that is turning into another WrestleMania for us, and the more that Nick (Khan) and Paul (Levesque) can drive these events to be of that ilk and that level, and deliver the kind of result on live events and site fees that we get for WrestleMania, that’s what’s gonna get us the rest of the way there on a margin increase.”
Not all cable and satellite providers will offer free access to ESPN’s upcoming streaming service — which will host WWE pay-per-view events beginning next year. Pwinsider contacted ESPN on Wednesday to clarify earlier reports suggesting that current cable and satellite subscribers with ESPN would automatically receive access to the new platform.
In a statement, ESPN noted that only select providers will include access to WWE pay-per-view events through the new app as part of existing subscriptions. The following services are currently confirmed to offer this access:
* Hulu Live
* DirecTV
* Charter
* FuboTV
* Verizon Fios
That means that as of now providers like YouTube TV, Xfinity, DISH, Sling, Altice, Cogeco, Frontier, and the like will need to subscribe to the ESPN app to get the pay-per-view events. It is possible that those carriers could get deals that make the events free for their subscribers but as of now, it has not happened.
