Netflix Inc. (NFLX  ) has clinched an unprecedented deal with World Wrestling Entertainment (WWE), securing exclusive rights to its flagship program 'Raw' and other key programming.

What happened: Starting January 2025, after WWE's deal with Comcast Corp. (CMCSA  ) expires, 'Raw' will air on Netflix in multiple regions including the U.S., Canada, Latin America, and other international markets.

The 10-year agreement worth $5 billion includes not only 'Raw' but also other popular weekly shows such as 'SmackDown' and 'NXT.' Moreover, the deal encompasses WWE's Premium Live Events like WrestleMania, SummerSlam, and Royal Rumble. Additionally, Netflix will offer WWE's acclaimed documentaries, original series, and upcoming projects to its international audience starting in 2025.

Mark Shapiro, TKO Group Holdings (TKO  ) president, described the agreement as a groundbreaking development, saying, "This deal is transformative. It marries the can't-miss WWE product with Netflix's extraordinary global reach and locks in significant and predictable economics for many years. Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix."

Netflix chief content officer Bela Bajaria expressed enthusiasm about bringing WWE Raw to their platform, highlighting the vast and dedicated fan base of the show. "We are excited to have WWE Raw, with its huge and passionate multigenerational fan base, on Netflix," Bajaria stated. "By combining our reach, recommendations, and fandom with WWE, we'll be able to deliver more joy and value for their audiences and our members.

Why it Matters: The acquisition marks a significant pivot for Netflix, traditionally known for its on-demand films and TV shows. By adding three hours of live wrestling weekly, starting next year, Netflix aims to capture a large, loyal fan base of WWE viewers. This move is part of a broader trend where major live events are gradually transitioning from cable TV to streaming platforms.

Market Reactions: The announcement triggered a bullish response in premarket trading, with shares of TKO Group Holdings Inc., WWE's parent company, surging by 22%. Should this gain persist through the session, it would represent the most robust daily performance since the company's initial public offering in 1999.

Adding to the fervor, the company is also appointing Dwayne "The Rock" Johnson to its board.

Shares of Netflix Inc. were 2% higher, on track to hit the highest level in two years.