Last week, (NASDAQ: NFLX) made its first big move into live event programming by striking a deal with TKO Group Holdings (NYSE: TKO) for its subsidiary WWE's Raw distribution rights. The reported 10-year, $5 billion-plus agreement will bring the popular weekly professional wrestling show to the streaming giant in January 2025.

The move, providing WWE access to a broader audience, is a significant step for Netflix, which is behind its competitors Amazon, Apple, and Walt Disney in programming live sports. So, let's look at the deal's reported specifics and what it means for both Netflix and TKO.

The partnership is a little more complicated than the headline suggests. That's because the deal doesn't lay out specific dollar amounts for each year, only that the fee will be in excess of $5 billion over 10 years. That could change, however, as Netflix has the option after the first five years to cancel the agreement -- or extend it for an additional 10 years in 2035.

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Source Fool.com