Posted in: AEW, Sports, TV | Tagged: wrestling

Should AEW Fans Worry About Netflix Buying Warner Bros?

Netflix's $82.7 billion Warner Bros. acquisition raises questions about AEW's future. We examine the implications for wrestling fans and the promotion's deals.

The entertainment industry experienced a seismic shift this morning as Netflix, Inc. announced its acquisition of Warner Bros. from Warner Bros. Discovery, Inc. (WBD) in a transaction valued at approximately $82.7 billion. The deal, which will see Netflix pay $27.75 per WBD share in a combination of cash and stock, has sent reverberations throughout multiple sectors of the entertainment landscape. While cinephiles fret over the streaming giant's historically ambivalent relationship with theatrical exhibition, and comic book enthusiasts contemplate the ramifications for DC Comics' future, professional wrestling aficionados find themselves pondering a particularly pressing question: What does this mean for All Elite Wrestling (AEW)?

The wrestling promotion, which has cultivated a devoted fanbase since its formation in 2019, currently maintains broadcast agreements with WBD's Turner networks TNT and TBS, as well as streaming arrangements with HBO Max. Given Netflix's existing relationship with World Wrestling Entertainment (WWE), which sees Monday Night Raw broadcast on the platform and all WWE content available internationally through the streamer, concerns about potential conflicts of interest are far from unwarranted. WWE, the industry's dominant organization, has historically employed aggressive business strategies designed to eliminate competition and establish monopolistic control over professional wrestling, a position it enjoyed from World Championship Wrestling's (WCW) demise until AEW's emergence.

AEW Television Rights: Likely Safe for Now

Regarding AEW's current television broadcasting arrangement, the promotion appears relatively secure in the immediate term. According to the press release issued by Netflix and WBD, the transaction will occur following the separation of WBD's Global Networks division, which will be rebranded as Discovery Global, into an independent publicly traded entity. This newly formed company will encompass premier entertainment, sports, and news television brands worldwide, including TNT and TBS, the current homes of AEW Dynamite and AEW Collision respectively.

Furthermore, AEW's existing rights agreement extends through the conclusion of 2027, with potential provisions for an additional year. Any premature termination of this contract would necessitate substantial financial penalties, rendering such action economically imprudent. Consequently, subscribers can anticipate continued AEW programming on these networks until the contract's natural expiration.

AEW Streaming Considerations: A More Complicated Picture

The streaming landscape presents a more nuanced scenario. AEW currently maintains an arrangement with HBO Max in the United States, offering both discounted premium live event access and an extensive back catalog of programming. The Netflix press release indicates that HBO Max will be included in the acquisition, though whether it continues operating as a discrete streaming service remains uncertain.

From a business perspective, maintaining HBO Max as a separate entity would appear logical, given the probable substantial overlap between HBO Max and Netflix subscribers. Consolidating these services would potentially result in revenue attrition from consumers currently maintaining both subscriptions. Regardless of structural decisions, AEW content will likely remain available through HBO Max or Netflix (should the services merge) until the current agreement concludes.

Following contract expiration, AEW may require alternative streaming arrangements. One intriguing possibility involves establishing a proprietary streaming platform. The promotion already operates the Ring of Honor (ROH) streaming service, demonstrating both technical capability and institutional knowledge in this arena.

Future Rights Negotiations: Navigating a Changed Landscape

The most consequential implications may manifest during future rights negotiations at the conclusion of 2027 or 2028. AEW will confront a marketplace where WWE has systematically secured agreements with major media organizations: Netflix for WWE Raw in the US and all streaming content globally, Entertainment and Sports Programming Network (ESPN), owned by the Walt Disney Company, for premium live events domestically, NBC Universal for SmackDown, and The CW Network for NXT. Additionally, WWE's partner organization Total Nonstop Action Wrestling (TNA) recently finalized an agreement with AMC Networks for Thursday Night Impact.

However, AEW's bargaining position should not be underestimated. When the promotion announced its current television rights agreement in October 2024, it emphasized impressive viewership metrics. AEW programming reached more than thirty-three million fans annually across TBS and TNT, with Dynamite ranking as Wednesday's number one cable entertainment program among persons aged eighteen to forty-nine. Collision similarly ranked among the top five programs in its Saturday timeslot among the coveted eighteen to forty-nine demographic.

This highly rated live sports programming, which operates year-round without traditional off-season interruptions, represents valuable content for any network seeking consistent viewership. Beyond potentially renewing with Discovery Global, numerous media companies will undoubtedly express interest in acquiring such a proven commodity.

International Distribution: Business as Usual

For audiences outside the United States and North America, minimal disruption appears likely. AEW maintains distribution through various international platforms, an arrangement expected to continue. Indeed, the AEW Plus subscription service available through Triller TV could potentially become increasingly attractive both to international consumers and domestic viewers utilizing virtual private network (VPN) technology.

AEW and WB Cross-Promotional Opportunities: Winners and Losers

One area facing immediate alteration involves cross-promotional initiatives between AEW and Warner Bros. properties. The promotion has collaborated with DC Comics for comic book crossover events, executed promotional campaigns with Game of Thrones, partnered with the Texas Chain Saw Massacre video game, and most notably, constructed Timeless Toni Storm's character with intimate connections to the Turner Classic Movies library.

While opportunities for Discovery Global collaborations will persist, such as AEW's previously executed Shark Week promotional events, fans harboring aspirations for an AEW and Looney Tunes crossover must accept disappointment. Warner Bros.' iconic intellectual property portfolio will henceforth remain beyond the promotion's reach, precluding such creative partnerships.

The Netflix acquisition of Warner Bros. undeniably transforms the professional wrestling landscape, but AEW appears reasonably positioned to navigate these changes successfully, at least through the current contractual period. Media consolidations are almost never good for consumers, as wrestling fans who witnessed the grueling period of WWE monopoly that began with the demise of WCW only ended when AEW was former, breathing new life into the business and ushering in a creative and monetary boom for the wrestling industry as a whole, can attest. Such mergers diminish consumer choice, thereby shifting the balance of power towards expansive conglomerates. That said, the media ecosystem still possesses sufficient breadth to accommodate AEW's innovative and captivating product, at least for now. While challenges are inherent in navigating a shifting media environment, AEW's unique appeal and established fanbase fortify its prospects in this evolving arena.

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