(03-03-2015 06:14 PM)Latilleon Wrote: (03-02-2015 10:50 PM)ncrdbl1 Wrote: (03-02-2015 09:08 PM)Latilleon Wrote: WWE is in a transitional period. If it keeps up with the Network and makes more inroads with customers, the money will come.
Netflix looked like it was on the ropes three years ago when it seem like it wouldn't be able to get the content it needed and it fumbled with "qwikstar." Look at it now.
Plus the company looked like it was about to die in 1995.
WWE Network is fiscally unworkable. The average PPV cost except for Wrestlemania is $44.95. Wrestlemania is $59.95. The cost of a year of PPV is $554.40. It take 4.6 full season WWE Network Buys to make up the cost of a single years worth of PPV buys. They announced they needed 1 million subscriptions to reach the break even mark. but that was 1 million DOMESTIC buys. The did not reach the 1 million mark until after they opened it up to the international market. BUT once the opened up to the international market the 1 million mark is no lounger the break even mark. For every new market they open for the WWE network they must have 4.6 WWE Network buys for every one who used to buy the PPV events.
Let's not forget they also have an SEC investigation and a stock holder lawsuit sitting over their heads. McMahon could be facing jail time.
things I think you miss out on:
#1 they only got fifty percent of PPV revenue. So that $50 becomes $25. Secondly not all wrestling fans paid for PPVs. I think most got 100k buys and Wrestlemania did about a million.
#2 if subscriptions grow and they pick up casual fans, they need three subscribers to make up for the lost PPV revenue. Once they have the subscriber base, they can easily market to them with ads and they know who to direct merch to.
#3 WWE network could easily have 10 million subscribers in the next ten years. All it takes is for the company to come up with the right programming mix. I don't think WWE network will strictly be wrestling. Before you know it, it might open the door for being a Netflix or Amazon Prime type content provider.
Seeing that Raw has only 3.4 million viewers and Smackdown less than 2 million. I doubt you will be able to dig up 10 million WWE Network subscribers. One of the WWE Financial officers was just recently raked across the coals for suggesting they will be able to reach 3-4 million subscribers. You are also far off on your Wrestlemania buys. 2014 saw fewer than 700,000. Which indicates a major loss of revenue compared to previous years with around 600,000 WWE Network times at the time. Which translates into about a net reduction of around $25 million from Wrestlemania alone.
April 3, 2011: Wrestlemania 27: 1,124,000 worldwide PPV buys (679,000 buys in US/Canada)
April 1, 2012: Wrestlemania 28: 1,219,000 worldwide PPV buys (715,000 buys in US/Canada)
April 7, 2013: Wrestlemania 29: 1,104,000 worldwide PPV buys (662,000 buys in US/Canada)
April 6, 2014: Wrestlemania 30: 690,000 worldwide PPV buys along with 667,287 subscribers to the domestic WWE Network
WWE Network is not adding new customers just moving them to a lower cost alternative.