(Bloomberg) -- Netflix Inc. has acquired the exclusive rights to Raw as well as other programming from World Wrestling Entertainment, marking the video service’s first big move into live events.

The streaming giant agreed to pay $5 billion over the course of the 10-year deal, according to people familiar with the terms who asked to not be identified because the numbers aren’t public. A spokesperson for Netflix declined to comment.  

With the agreement, Netflix aims to bring in millions of loyal WWE viewers and provide a boost to its fledgling advertising-supported plan. The company has been dabbling in live events for the last year, airing a live comedy special, as well as a golf match. But this is the first long-term deal — a commitment to offer three hours of live wrestling a week starting next year. 

Raw will air on Netflix in the US, Canada, Latin America and other international markets beginning in January 2025, after the expiration of the WWE’s domestic deal with Comcast Corp.’s NBCUniversal. The company will also become the exclusive home outside the US for all WWE shows and specials, including SmackDown and NXT, as well as pay-per-view live events like Wrestlemania, SummerSlam and Royal Rumble. The pay-per-view events will be included at no additional cost for Netflix customers.

“In addition to the United States, it allows us to gain even a greater global footprint,” WWE President Nick Khan said in an interview with Bloomberg Television on Tuesday.

Read More: WWE President Pleased With $5 Billion Netflix Deal

Shares of TKO Group Holdings Inc., which owns WWE, surged as much as 24% to $95.92 in New York. TKO’s controlling shareholder, Endeavor Group Holdings Inc., gained as much as 6.8%. Netflix was little changed.

The company is also adding former wrestler and actor Dwayne “The Rock” Johnson to its board, according to a securities filing Tuesday. Johnson, 51, will be granted the intellectual property rights to “The Rock” trademark, as well as related catchphrases, and license those rights back to WWE for up to 10 years. He’ll also provide promotional services to WWE, for which he will be entitled to about $30 million in TKO stock through 2025.

WWE was previously paying Johnson royalties annually, which he earned through appearances and merchandise sales. That amounted to nearly $500,000 last year. He’ll keep receiving royalty payments from sales of licensed products.

The WWE is the latest major live event to shift from cable TV to streaming. Ultimate Fighting Championship, which is also owned by TKO, offers many of its matches on ESPN+, while the National Football League sold Amazon.com Inc. the rights to Thursday Night Football. An NFL playoff game on Comcast’s Peacock just delivered the largest streaming audience for any professional sports event in the US.

While the WWE isn’t exactly a sport — most of the storylines are scripted — it draws a consistent live audience akin to a sporting event. Raw is the most-watched of the WWE’s programs, drawing about 1.5 million viewers per show. It debuted in 1993 and has been the training ground for future movie stars Johnson and John Cena. 

“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,” Netflix Chief Content Officer Bela Bajaria said in a statement. The company has also licensed the rights to WWE’s documentaries and original series.

NBCUniversal has been paying about $265 million a year to carry Raw. But last year the company acquired the rights to Smackdown, considered the second-best package, for about $287 million a year. Shares of TKO sank at the time as investors had hoped that package would score a bigger payday. They also feared WWE would struggle to find a lucrative new home for Raw. Investors didn’t account for Netflix’s newfound interest in live entertainment, however.

TKO has now secured long-term deals for all of its biggest properties, and will negotiate its next deal for the UFC in 2025. 

“Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE and brings weekly live appointment viewing to Netflix,” Mark Shapiro, TKO’s president, said in a statement.

Netflix reports fourth-quarter earnings after the market closes on Tuesday, and Wall Street is expecting another blowout quarter after the last report in October showed a strong increase in new subscribers. The stock has gained more than 40% since then and analysts are estimating sales rose 11% in the last three months of the year. That would be its fastest expansion in two years, when the company got a boost from the stay-at-home economy. 

Read More: Netflix Must Show That Growth Is Here to Stay After 40% Rally

--With assistance from Kim Bhasin.

(Updates TKO shares in sixth paragraph.)

©2024 Bloomberg L.P.