This was "buried" in the various press releases the WWE made when announcing their 2012 fourth quarter earnings and their yearly earnings. Some very interesting notes on the thought process of the WWE regarding the direction of WWE Network.
The interesting points:
1) The WWE believes they can ultimately attract between 2 and 4 million subscribers.
2) The WWE Network would include all PPVs, except Wrestlemania
3) PPVs would still be offered as they currently are
4) The WWE plans to propose a price between $12.99 and $14.99
5) The WWE expects to lose money on the WWE Network until they hit roughly 1 million subscribers
Very interesting and informative. It's nice to see some "hard" numbers, even if these ideas are not set in stone yet. So, if we assume these ideas come to fruition, and WWE Network is available on your TV provider, how likely are you to subscribe?
http://ir.corporate.wwe.com/Cache/1500047423.PDF?Y=&O=PDF&D=&fid=1500047423&T=&iid=4121687Regarding a potential WWE network, we are evaluating multiple approaches. We believe that a premium subscription model is the best approach in the U.S. to capitalize on our fans' commitment to our brands and their desire for more WWE content. Based on our market research, we estimate that a fully distributed domestic pay network could ultimately attract between 2 million and 4 million subscribers at a "steady state." These subscriber estimates derive from a projected base of approximately 47 million WWE digital TV households in the US (including lapsed fans), and the proportion of which have an affinity for WWE content, although there is no guarantee that this affinity will translate into actual subscribers. These take-rates are based on a value proposition for the network that reflects inclusion of our pay-per-view events, except WrestleMania, as well as compelling original content. Under our preferred subscription model, while our pay-per-view events would still be offered on an á la carte basis as currently available, the research indicates that a WWE network offering would drive significant consumer interest (including households that currently do not purchase pay-per-view events). At a proposed price per month between $12.99 and $14.99, this would represent incremental revenue to WWE of between $125 million and $250 million and incremental EBITDA between $50 million and $150 million. Actual results are contingent on several factors, including the necessity of entering into distribution agreements, and such results could vary materially from the expected range based on the rate of subscriber adoption and churn rates, as well as changes in pricing, promotion levels and distribution terms. Until a base of approximately 1 million subscribers is achieved, we estimate the network would represent a net investment for WWE. Ultimately, we believe a network and other distribution and monetization options would represent a sizable economic opportunity in the U.S. and internationally.
The interesting points:
1) The WWE believes they can ultimately attract between 2 and 4 million subscribers.
2) The WWE Network would include all PPVs, except Wrestlemania
3) PPVs would still be offered as they currently are
4) The WWE plans to propose a price between $12.99 and $14.99
5) The WWE expects to lose money on the WWE Network until they hit roughly 1 million subscribers
Very interesting and informative. It's nice to see some "hard" numbers, even if these ideas are not set in stone yet. So, if we assume these ideas come to fruition, and WWE Network is available on your TV provider, how likely are you to subscribe?