WWE’s ‘Royal Rumble’ Sees 52% Increase in Viewers on Peacock; Would Sale to NBCU Streamer Endanger Hulu Relationship?

The WWE held its annual “Royal Rumble” event on Saturday, Jan. 28, and it was a big streaming success. During WWE’s fourth quarter earnings call with investors and reporters, CEO Nick Khan reported that the event drew 52% more viewers to NBCUniversal’s streaming service Peacock than the 2022 edition did.

WWE wrestling has been a major programming tentpole for Peacock over the past year, and was a big driver of new subscriptions to the platform. Peacock was able to more than double its paid subscriber total from 9 million to 20 million in 2022, and the popularity of wrestling on the service has led many to the conclusion that Comcast might be interested in owning the WWE outright.

Speculation regarding a potential sale of the wrestling promotion began when CEO Vince McMahon stepped down from his position due to allegations of sexual misconduct and hush money payments last year. However, McMahon returned in early January to oversee a potential sale and new rights deal, the former of which is now seen as a near certainty. The NBC networks and Peacock would be a natural landing spot for the sports entertainment conglomerate, especially given Khan’s comments in the earnings call regarding what WWE is looking for in a new partner.

Khan said the company was seeking “a partner that has more than simply deep pockets. So a partner that understands the media business, that’s in the media business, that understands how to further monetize the media business, that certainly understands our product, our intellectual property, what we’re doing with it, what can be done with it, media rights, both domestically and internationally.”

A global media conglomerate with the reach of NBCU’s parent company Comcast would certainly seem to fit Khan’s bill. NBCU has been in business with the WWE for decades, in addition to the recent relationship with Peacock, numerous programs have aired on NBC proper over the years, and USA Network has been the home of the sports entertainment company’s flagship show “Monday Night RAW” for the majority of its 30-year run. But if WWE were sold to Comcast, what would happen to its programming arrangements with Hulu?

Next-day air streams of WWE shows “Monday Night Raw,” “NXT,” and “Friday Night Smackdown” all stream on Hulu currently, after the streamer renewed its deal with the wrestling company in November. That renewal was only effective through the end of this year, but judging by the fact that Hulu will also host a new documentary series featuring WWE superstars Montez Ford and Bianca Belair, it appears the two sides would like to continue their relationship.

A sale to a Comcast-owned entity could complicate that relationship. Comcast currently owns 33% of Hulu, but due to a complex agreement with Disney, that stake is likely to be sold to the House of Mouse before the end of 2024. Disney and Comcast have been at loggerheads about the valuation of that stake in Hulu, and the dispute has become bitter and public.

Perhaps Disney and Comcast can smooth things over after the sale is complete, and next-day streams of “NXT” and “Monday Night Raw” — which currently air live on the USA Network — could continue. It would behoove Comcast to make some effort to make that happen, as the WWE thinks its current arrangement of having its shows on linear TV and streaming is working well. However, if Comcast were to own the entire organization, chances are that it would want to keep their investment in-house.

“You have one program on broadcast, ‘SmackDown.’ You have one on basic cable, ‘Raw,’ and you have our premium live events on streaming with Peacock,” Khan said during Thursday’s earnings call. “We think all three have worked. So as it goes into the new cycle, again, FOX is traditional broadcast in terms of free-to-air. We love it. It’s worked. In terms of USA, it continues to work. They’re obviously a long-time partner of ours.”

That makes it sound as if whichever company buys the WWE will have to be comfortable allowing it to air in more than one place. So if Comcast wants to be the next owner of the WWE, it just might have to make nice with Disney and keep its relationship with Hulu alive and well.