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Thread: The WWE Isn't Anywhere Close To Its Subscriber Goals, And Now It's Axing 7% Of Its St

  1. #1
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    Default The WWE Isn't Anywhere Close To Its Subscriber Goals, And Now It's Axing 7% Of Its St

    World Wrestling Entertainment's big bet on a streaming online video network is bleeding money, and now the company is scrambling to salvage it with major cost-cutting measures and a new pricing model.
    The company announced in its second-quarter earnings release Thursday that the WWE Network had just 700,000 subscribers, well short of the 1 million subscribers the company has said it needs for the network to break even and even further from the 1.4 million users needed to replace the pay-per-view business the network is expected to supplant.
    Though the company said in April that it was "well on its way" to hitting 1 million subscribers by the end of the year, the network has added just 33,000 new subscribers since then despite offering a free trial and launching an all-out marketing blitz.
    Perhaps as a result, the company said Thursday that its projected 2015 operating profit improved by $30 million, primarily because of cost-cutting measures and a new plan to reduce total company staff by 7%.
    The company now estimates that at its current subscription rate it would lose about $20 million in 2014, largely because of network startup costs.
    The WWE will also offer a new pricing model for the Network, which has required a six-month commitment from customers in exchange for access to its monthly special events (previously available on pay-per-view for upward of $50) and other content at a price of $9.99 a month.
    In August, when initial subscribers will first have the option to unsubscribe, it will debut an additional $19.99 option for customers who would prefer not to do the six-month commitment.
    The company also announced plans to expand the network, currently available only in the U.S., to more than 170 countries and territories starting Aug. 12.
    Still, the company has estimated that international demand for the network is only a fraction of the domestic audience. And even then, as wrestling business reporter Chris Harrington has pointed out, there's reason to believe many fans overseas have already found extralegal ways to buy the network.
    On the bright side, the company announced it lost $0.18 per share in the second quarter, a better performance than the $0.22 loss analysts had been expecting. Revenues for the quarter came in at $156.3 million, beating analyst expectations of $155.5 million.
    The stock is at $13.17, up $1.08 from its $12.09 close the previous evening. Still, that's down considerably from the $19.93 price it was trading at prior to a May crash on news of a disappointing new television contract.
    https://ca.finance.yahoo.com/news/ww...134205311.html

  2. #2
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    I mean, when they came out during the initial launch press conference and were throwing out these bonkers numbers regarding how many WWE fans there are in US households and just the sheer ridiculousness of their predicted numbers from their surveys, it was going to be an ugly number and when you couple that with the utter bomb of their licensing deal in the renegotiations with NBCUniversal, this is a bad year to be Vince.

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    It's a simple formula:

    Zack Ryder + more TV Time= $$$$
    Quote Originally Posted by SWIFTboy View Post
    I rode a horse. Banged in a hot spring.
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  4. #4
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    well there is this....

    Rogers strikes 10-year deal with WWE Network

    WWE is set to make its deep vault of classic matches on its video-streamed network available around the globe.

    WWE has hit 700,000 subscribers since the company home to Hulk Hogan, Brock Lesnar and John Cena launched the WWE Network in February, an increase of just 33,000 since the company revealed its initial total in April.

    The sports entertainment giant had hoped to reach 1 million subscribers by the end of the year. WWE could still hit that target by next year, with international network expansion coming Aug. 12 in more than 170 countries and territories, including Hong Kong, Mexico, Spain, and Russia.

    But WWE lost $14.5 million in the second quarter and will lay off seven per cent of the company’s staff.

    WWE announced Thursday a new 10-year partnership with Rogers Communications in Canada that will launch the WWE Network as a traditional pay-TV channel in Rogers’ cable systems, also starting Aug. 12.

    "WWE’s core business metrics remain strong, and WWE Network continues to be the single greatest opportunity to transform WWE’s business model," said Vince McMahon, Chairman and Chief Executive Officer. "Additionally, we identified efficiencies that will improve our 2015 OIBDA outlook by $30 million. Based on these initiatives, we are optimistic about our potential to drive long-term growth."

    So much hinges on the health of the network.

    George Barrios, WWE’s chief strategy and financial officer, said before the network launch about 1 million subscribers would allow the network to break even. Barrios had said WWE could have between 2 million and 4 million global subscribers.

    Barrios told The Associated Press this week the network should still hit those numbers, though he had not laid out a timetable for reaching that mark.

    "We’ve done a lot of research that makes us excited about the ability to get to that place," he said. "Then it’s going to be a ground game every day."

    Barrios said if the WWE could average 1.5 million subscribers in 2015, the company, with headquarters in Stamford, Connecticut, would expect a profit of $100 to $120 million.

    The expansion should help and more tag-team partners are on the way. The network is prepared to eventually air live in Britain, Italy, United Arab Emirates, Germany and Japan. The WWE Network is expected to air live in Britain by October.

    WWE is still a hit every Monday night with its flagship show, "Raw," and posts solid ratings for Friday night’s "Smackdown."

    The July 28 "Raw" averaged 4.317 million viewers and last week’s averaged 4.43 million — so the fan base is there for the WWE to think big when it comes to network numbers.

    But, much like the bad guy who needs time to turn good, some viewers are still hooked on the traditional PPV outlet, even at $50-$60 a month with no additional content.

    "It takes time for people to hear about it, so part of it is awareness," Barrios said. "Part of it is people getting comfortable with it being something they want to shift to. The pay-per-views were a behaviour we trained for 30 years and people don’t change overnight. It’s time and awareness."

    WWE said 91 per cent of subscribers access the network at least once per week and use 2.5 devices to consume network content. WWE said 90 per cent of subscribers are satisfied with WWE Network, with 51 per cent extremely satisfied and 39 per cent somewhat satisfied.

    Those fans will soon face a change in how they pay their bill to have 24-hour access to The Rock and Daniel Bryan. The network launched set at $9.99 per month with a six-month commitment. The company will introduce new payment plans in August, including a $19.99 monthly plan (with no commitment) and an upfront one-time payment option for its existing $9.99 per month offering (with six month commitment).

    WWE will add a resume play feature for video content in the next few months.

    WWE is making a strong network push centred around its loaded Aug. 17 SummerSlam card in Los Angeles. The show boasts the best on-paper main event of the year with company stalwart Cena defending the WWE World Heavyweight Championship against former UFC star Lesnar. Also, Stephanie McMahon will face Brie Bella in one of the other marquee matches.

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    I think I'm going to get the Network for Summer Slam. Which I think would run out right before Royal Rumble, but includes Survivor Series, TLC, and HIC. And several afternoons of binge watching old matches.
    Quote Originally Posted by SWIFTboy View Post
    I rode a horse. Banged in a hot spring.
    Quote Originally Posted by GL Jeff View Post
    Is he bigger then WarMachine?


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    Once it hits Mexico... I will most likely get it... I'd really like to re watch some of the great workers from both WCW and WWF...

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    I have had the Network since it launched and I think it is awesome, definitely worth the money since I have used it to watch several PPVs live (including Wrestlemania) and seen a lot of the other content too.

    "With great power comes great responsibility."

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    I think I'm gonna start in the 1970's and work my way up.
    Quote Originally Posted by SWIFTboy View Post
    I rode a horse. Banged in a hot spring.
    Quote Originally Posted by GL Jeff View Post
    Is he bigger then WarMachine?


  9. #9
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    Quote Originally Posted by KevoOnTheRadio View Post
    I think I'm gonna start in the 1970's and work my way up.
    Yeeeeah, they really don't have fuck-all up on the network right now when it comes to 1970s territory wrestling and given the hours of library footage they have from various promotions, it's really weak. Going into the 80s, there's a good deal of WWF stuff, but the excellent territory stuff hasn't been uploaded yet and they own most of it(sans St. Louis at the Chase).... The old stuff they do have from GREAT territories, like Mid-South and World Class are not shown sequentially, so you don't get the storyline and angle builds as you might want to see and most of the blow-off shows aren't on there either.

    They've got almost all of the WWE/F, WCW and ECW PPVs, but the libraries aren't as jam-packed with the TVs as they ought to have. Also, the media player leaves something to be desire for as there isn't a decent fast forward/rewind function and compared to Fight Pass's, I think it still needs improvements, which is what a lot of people have complained about... For my money, their Mid-South Blu-Ray trumps everything they offer on the network as far as old stuff goes(excluding PPVs).

    Really, I've watched the old PPVs and Clash of the Champions etc, but as for the good stuff, they don't have hours of St. Louis Wrestling or Bruiser Brody stuff and there's nothing from Japan, so if you're looking for rare stuff, stick to personal collections and Youtube.....

  10. #10
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    Quote Originally Posted by SWIFTboy View Post
    I rode a horse. Banged in a hot spring.
    Quote Originally Posted by GL Jeff View Post
    Is he bigger then WarMachine?


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