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WWE future endeavors....  Rating:  Rating
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 Posted: Thu Jun 19th, 2014 03:14 am
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Kriss
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hammettime wrote: very curious what happens when it is available internationally, or at least in the uk. have no idea what that will do for increased overhead, but the uk fans in particular are so ravenous, i imagine subscriptions will get a huge boost.
I think the UK news will not be good for 2 reasons. Every hardcore wrestling fan I know here already has the network via VPN. When the Network launches in the UK, it won't include the PPVs, due to the WWE deal with Sky TV here. The Network in the UK may even be through Sky, rather than through wwe.com.



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 Posted: Thu Jun 19th, 2014 04:49 am
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Quattro

 

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Unfortunately this may end up being an XFL level failure.

Despite what is a great product and value.

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 Posted: Thu Jun 19th, 2014 07:30 am
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martini
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Quattro wrote: Unfortunately this may end up being an XFL level failure.

Despite what is a great product and value.

The only question is can the WWE pay-per-view model of past return as it was?



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 Posted: Thu Jun 19th, 2014 07:50 pm
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tamalie
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Matt Farmer wrote: srossi wrote: I really hope that the WWE Network catches on and gets to 1 million within the next few months.  It's a great product and it's a shame people are losing their jobs over it.I'm with you unfortunately word on the street is numbers for subscribers have actually decreased in the last month. Saw it on the interweb, didn't take a whole lot of stock in it until a few folks I talked with in the last few days who are close to the situation. 
Guess the big worry is coming public with the numbers at the next shareholders meeting.

Due to the six month minimum subscription and it only being about four months into WWE Network, how is it possible for the subscriber numbers to have decreased yet? No one, as far as I know, has even had an opportunity to bail yet.

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 Posted: Thu Jun 19th, 2014 08:19 pm
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khawk
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Probably refused credit cards that get the network cancelled when it is discovered.



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 Posted: Thu Jun 19th, 2014 10:05 pm
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Superstar
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Quattro wrote: Unfortunately this may end up being an XFL level failure.

Despite what is a great product and value.

This can't possibly end up being an XFL-level failure, because they are actually bringing in money to offset costs.  The reason that the Network isn't realizing any sort of noticeable gains right now is due to the capitalized startup costs that they are taking in right now - it's not amortized over the life in a straight line, it's taken in over the first 12 months if I'm not mistaken being that they are public.   They own all the footage, so there are no programming costs so to speak outside of them taking all live PPV costs into the Network financials.  They should have NEVER announced the subscriber numbers when they did, they should have just announced the realized revenue from subscriptions vs network fixed and variable costs.  Just because they are public doesn't mean they have to announce EVERYTHING - financial numbers are all they are required to put out.

The Oprah Winfrey Network lost hundreds of millions over 2011/2012, Discovery put their people in control of the place, and they turned it around.   WWE has nowhere near the costs that OWN has/had.   And, WWE is making more money per subscriber being that they are their own content distributor.  The downside to that is that they only make money if people want them - OWN gets paid based on subscribers whether they watch or not.  WWE has a cap on how many can possibly buy this, and it's based on their fan base.  My parents wouldn't pay a nickel for this; my kids think it's worth double of what you pay. 

If WWE Network fails, it should not fail for at least 4-5 years, that is if Vince hasn't completely lost his mind.  This is not a short-term model - the moment he announced that it was going out as a $10 per month streaming service he needed to know that it was going to take a minimum of 2 years to get it running to full capacity and if he didn't know that it's his own fault.  There is no going back to the PPV model - after this, nobody in their right mind will buy a PPV at full price.

Short term, WWE should consolidate the Home Video and PPV operations under the Network umbrella.  That will pump up the number slightly.  What kills me is that even though they have almost three quarters of a million subscribers, they STILL got 600,000 Wrestlemania buys.  And nobody cares - they say the network is a failure when it truly hasn't even been given a chance to get off the ground yet.



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 Posted: Fri Jun 20th, 2014 01:03 pm
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Has the number of people calling themselves wrestling fans gone up or down in recent years?

I don't see any way that the network is going to draw people to be subscribers in a couple of years that aren't subscribers now. You mention the weakness in your OWN comparison - that the only people who will give WWE money are specific fans of their product, and that number isn't rising.

I mean, perhaps I'm misunderstanding something, and they can survive and make a healthy profit on the numbers they have now.

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 Posted: Fri Jun 20th, 2014 02:17 pm
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Matt Farmer

 

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tamalie wrote: Matt Farmer wrote: srossi wrote: I really hope that the WWE Network catches on and gets to 1 million within the next few months.  It's a great product and it's a shame people are losing their jobs over it.I'm with you unfortunately word on the street is numbers for subscribers have actually decreased in the last month. Saw it on the interweb, didn't take a whole lot of stock in it until a few folks I talked with in the last few days who are close to the situation. 
Guess the big worry is coming public with the numbers at the next shareholders meeting.

Due to the six month minimum subscription and it only being about four months into WWE Network, how is it possible for the subscriber numbers to have decreased yet? No one, as far as I know, has even had an opportunity to bail yet.
Due to people not paying their bills or simply disputing charges after Mania. 
Also they did not get 600,000 PPV buys. Domestically the number of buys was in the 350k range, and there was a huge drop in international buys leading many to speculate that is due to so many people internationally finding ways to subscribe. 
Which also does not bode well for the future of subscribers because investors were assuming a huge increase would happen when they are able to clear international markets. This years Mania ended up grossing something like 10 million dollars less than last years.
As for comparing a possible Network failure to the XFL, if the Network fails that will be a MUCH greater lose than XFL.  They have already damaged their PPV market, they cannot go back and expect people to pay $60 for a PPV. Those days are gone, but they ruined one of their largest revenue streams with hopes of replacing it with another stream of revenue.plus failing at your core business hurts your reputation much more than attempting to a new business.



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