WWE Just Went Into Panic Mode

[ABMorales787]

Anyone get the email this morning? The Network is now $9.99 period (plus taxes) there's no $12.99 month to month because they dropped the 6 month commitment and November is free for new subscribers. I also hear Network buys did not go past 75,000 or something like that which if its accurate sucks major balls given they have the Network selling in 150+ new countries now (I believe).

And of course then there's the usual. Ratings are dipping more than usual, creative is stupid, midcard sucks, Divas blow AND suck and theres no WWE Champion.

Karma. I smell another black Thursday on the horizon.

 

[Y 2 Jake]

Gotta appease those sharholders. I know, fire Hornswoggle and The Great Khali. Free us some money.

 

[Trill Co$by]

Or you know, give them the month of November for free along with one of the major 4 PPVs and maybe in December hope that people get/give the WWE Network subscriptions as holiday gifts. Seems like usual end of the year strategy to me...

Then again, I just work at Gamestop where we're running a Buy One Get One Free deal for all used games... as well as the usual Holiday Bundles.

 

[ABMorales787]

Or you know, give them the month of November for free along with one of the major 4 PPVs and maybe in December hope that people get/give the WWE Network subscriptions as holiday gifts. Seems like usual end of the year strategy to me...

Then again, I just work at Gamestop where we're running a Buy One Get One Free deal for all used games... as well as the usual Holiday Bundles.

Yeah, but unlike the Network, Gamestop sells big all year long.

 

[Vega]

They get what they deserve. This is a crucial time for the network and they pull the biggest selling point (world title match) from the biggest incentive to subscribe (monthly events). Then there haven't been a lot of content updates in the last six months.

The non-subscription tactic will work until Mania when people get the Rumble and Mania for 9.99$ each, but how many of them will stay for the time where WWE doesn't give a damn?

 

[George Steele's Barber]

Opened their service to 170 countries and only 28,000 subscribed. I know the UK isn't ready yet, but 28,000 sounds awful.

I'm depressed. Then again, I don't have the Network and I pretty much have stopped watching so I'm not surprised.

Should have turned Cena in to a Heyman guy when they had the chance.

 

[The Butcher]

I hope you're all satisfied. You bankrupted a bunch of naive 'rasslin folks. Folks from a Stamford where values are different. They weren't thinking about the money. They just wanted to tell a story. A story about a Super Cena. And you slick small-towners took 'em for all they were worth.

 

[Rayne]

I fail to see how this is "panic mode"; the WWE Network is an entirely new way of doing business for the company. In its first year, it's practically bound to go through an adjustment period, and this is one which makes sense. Instead of demanding $60 upfront from people, they're requesting $10 with a recurring subscription, and counting on enough people not to cancel when their subscription renews.

This is the exact same model that's been used successfully by MMO gaming; God only knows how many World of Warcraft accounts are active because people just haven't bothered to cancel. I'm more surprised that they didn't move to this model earlier. Are people going to buy in for one month, then cancel? Absolutely. Will this be all of them, absolutely not. In addition, you're getting plenty of one-time buys from people who otherwise wouldn't have dropped $60 for this.

Here's a real positive- now the WWE has incentive to construct PPV's that aren't simply versions of Sunday Night RAW. They'll have to create events that people really, really want to see, and the only way to do that will be to get on a recurring subscription. Side note, this is probably the final death stroke to the television PPV model, as now there is absolutely no point in dropping $30-$60 for a PPV.

 

[George Steele's Barber]

Throw in the fact that Ambrose shit on the AE and this may be the darkest day in WWE history.

 

[TJ Matics]

For some reason reading this post made me think of a pig rolling around in filth.

 

[Uncle Sam]

There was the idea of getting the US version but spending $60 with the risk of it being taken away from me was something of a disincentive. If this means I don't have to find an illegal stream to watch NXT Takeover live, I'm in.

Edit: Though I've just been informed - via Wreddit - that the UK will be getting the full version of the network in November; maybe I'll just see if that comes to fruition.

 

[Thriller Ant]

There was the idea of getting the US version but spending $60 with the risk of it being taken away from me was something of a disincentive. If this means I don't have to find an illegal stream to watch NXT Takeover live, I'm in.

Edit: Though I've just been informed - via Wreddit - that the UK will be getting the full version of the network in November; maybe I'll just see if that comes to fruition.

That takes all the excitement out though, doesn't it?

 

[Slash-LN]

I hope you're all satisfied. You bankrupted a bunch of naive 'rasslin folks. Folks from a Stamford where values are different. They weren't thinking about the money. They just wanted to tell a story. A story about a Super Cena. And you slick small-towners took 'em for all they were worth.

Can't rep you again yet but didn't want this to go unnoticed.

As far as the topic goes it seems like WWE is trying out different ideas to get people in.

They tried the low price of $10
They tried a free trial.
They tried allowing people to pay all at once rather than the $10 a month. (That might have been a rumor though. Don't remember if it ever went through.)
They tried giving a $25 gift card for WWE Shop.
Now they're trying to do it without the 6 month contract and are offering a free trial again. Although if I remember right the first time they did a free trial it wasn't for a full month. I could be totally wrong on that though.
And allowing people to drop the service anytime if they want.

Different ideas are going to draw different people in.

 

[klunderbunker]

So you're telling me that giving the Network to countries like the Falkland Islands, Mozambique, Sao Tome and Principe and Burkina Faso didn't draw in a bunch of new subscribers? Say it ain't so!

The number really doesn't surprise me that much. The commitment going away is going to help as well. $60 sounds like a lot of money to some people and it might be more than they're willing to spend. You cut that down to $10 a month where you can drop it at any time and see if the number doesn't go up. Couple in Christmas coming up ("Mommy please can I have the Network? I've wanted it all year!" "Maybe Santa will bring it for you honey."), the big season beginning and the new advertising money coming in (quick math: they need 1 million subscribers to break even right? Let's say, and I'm making this number up, they make $1 million in advertising. That's 10% of what they need a month already. That adds up quick) and things are going to improve.

It does amuse me that we're seeing a complete change in the company's business model and the detractors are laughing their heads off when it's not perfect a mere eight months in. These are the tweaks that everyone iwth a brain knew were coming and they'll make a big difference. The cost of running things are going to go down and the deficit will go with it. This is normal business and they'll find a balance.

 

[The Butcher]

Can't rep you again yet but didn't want this to go unnoticed.

As far as the topic goes it seems like WWE is trying out different ideas to get people in.

They tried the low price of $10
They tried a free trial.
They tried allowing people to pay all at once rather than the $10 a month. (That might have been a rumor though. Don't remember if it ever went through.)
They tried giving a $25 gift card for WWE Shop.
Now they're trying to do it without the 6 month contract and are offering a free trial again. Although if I remember right the first time they did a free trial it wasn't for a full month. I could be totally wrong on that though.

What they haven't tried is Mickey Rooney as CM Punk.

 

[George Steele's Barber]

So you're telling me that giving the Network to countries like the Falkland Islands, Mozambique, Sao Tome and Principe and Burkina Faso didn't draw in a bunch of new subscribers? Say it ain't so!

No, I'm saying countries like Australia, Mexico, Hong Kong, Spain, and the Nordics didn't draw in a bunch of new subscribers. It also isn't clear how many domestic subscribers have bailed.

The number really doesn't surprise me that much. The commitment going away is going to help as well.
$60 sounds like a lot of money to some people and it might be more than they're willing to spend. You cut that down to $10 a month where you can drop it at any time and see if the number doesn't go up.

This is the WM casual fan's dream. Now they can get WM for $10 instead of $65 (PPV) or $60 (six month commitment).

Couple in Christmas coming up ("Mommy please can I have the Network? I've wanted it all year!" "Maybe Santa will bring it for you honey."), the big season beginning and the new advertising money coming in (quick math: they need 1 million subscribers to break even right?[/quote]

Those were early estimates and have been bumped up in certain reports. Plus it assumed 1 million subscribers year round. Allowing fans to get it for a month makes things much more difficult.

Let's say, and I'm making this number up, they make $1 million in advertising. That's 10% of what they need a month already. That adds up quick) and things are going to improve.

I hope for Vince's sanity they drag that level of advertising money out of the Network.

It does amuse me that we're seeing a complete change in the company's business model and the detractors are laughing their heads off when it's not perfect a mere eight months in.

When estimates of a million, two million, four million are getting thrown around, seeing these results is kind of sad and laughable.

These are the tweaks that everyone iwth a brain knew were coming and they'll make a big difference.

You really think WWE had all these tweaks planned out? Or are you saying they have no brain?

The cost of running things are going to go down and the deficit will go with it. This is normal business and they'll find a balance.

How will costs go down? There is the obvious initial investment but how else will costs go down?

 

[klunderbunker]

No, I'm saying countries like Australia, Mexico, Hong Kong, Spain, and the Nordics didn't draw in a bunch of new subscribers. It also isn't clear how many domestic subscribers have bailed.

Why would a country like Spain or Mexico where the majority speaks Spanish pay for a service that is, as far as I know, only available in English?

This is the WM casual fan's dream. Now they can get WM for $10 instead of $65 (PPV) or $60 (six month commitment).

That's what a lot of people did with things like Paypal or prepaid credit cards.

Those were early estimates and have been bumped up in certain reports. Plus it assumed 1 million subscribers year round. Allowing fans to get it for a month makes things much more difficult.

Not necessarily. If they're willing to throw down $10 and like it, maybe they keep coming back. It's better to get a few tens here and there than no sixties yes?

I hope for Vince's sanity they drag that level of advertising money out of the Network.

Well companies like Pepsi have a lot of money to throw around for advertising.

When estimates of a million, two million, four million are getting thrown around, seeing these results is kind of sad and laughable.

Not if those estimates were way off base and insane.

You really think WWE had all these tweaks planned out? Or are you saying they have no brain?

Not these specifically but yeah I definitely think they expected to make tweaks of some sort. People who are saying this is a panic and that WWE was expecting it to go perfectly would have no brain.

How will costs go down? There is the obvious initial investment but how else will costs go down?

The initial investment was the main thing. The service is up and running and in theory all the employees and equipment are there. That's going to cut down on some costs. The Network certainly isn't perfect but 700k+ subscribers is far from a dismal failure.

 

[Slash-LN]

What they haven't tried is Mickey Rooney as CM Punk.

If only he wasn't dead.

This would have been amazing. I think he could have out CM Punk'd CM Punk.

 

[George Steele's Barber]

Why would a country like Spain or Mexico where the majority speaks Spanish pay for a service that is, as far as I know, only available in English?

I don't know about Spain, but Mexico is one place that WWE tours. They hire Mexican talent. Of any foreign language, I imagine they should be able to dub Spanish over a lot of their content or use a lot of content from previous SAP programming.


Why reach out to any foreign country where English is not the dominant language if it won't produce tangible results? I assume there is cost in setting up the Network in these places. Otherwise they could have done it much sooner and easier.

Not necessarily. If they're willing to throw down $10 and like it, maybe they keep coming back. It's better to get a few tens here and there than no sixties yes?

I disagree. Thinking about the numbers from the old singular PPV model, it is pretty clear that people can easily live without eight or nine PPVs. I expect the $80 a year that WWE will lose from people will be greater than the extra $40 it brings in from other people.

Well companies like Pepsi have a lot of money to throw around for advertising.

True and the Network has picked up some great sponsors. I just don't know the impact. I did read an article where WWE stated that the "project was not expected to be meaningful enough to require it to adjust it's overall econimc model.". I won't pretend to understand what that means.

Not if those estimates were way off base and insane.

Sorry I can not provide a source.

Not these specifically but yeah I definitely think they expected to make tweaks of some sort. People who are saying this is a panic and that WWE was expecting it to go perfectly would have no brain.

I agree that this is not panic mode. I just see The Network as failing right now and far from a guarantee it will ever succeed. I also see the singular month model as risky and could lead to less revenue and more administrative cost (I.e. - I think they're making a mistake).

The initial investment was the main thing. The service is up and running and in theory all the employees and equipment are there. That's going to cut down on some costs. The Network certainly isn't perfect but 700k+ subscribers is far from a dismal failure.

Agree. I think it is failing but not a failure. I was impressed that they even broke half a million domestically. They have made mistakes but they needed to change things at some point as PPV dies.

 

[klunderbunker]

I don't know about Spain, but Mexico is one place that WWE tours. They hire Mexican talent. Of any foreign language, I imagine they should be able to dub Spanish over a lot of their content or use a lot of content from previous SAP programming.


Why reach out to any foreign country where English is not the dominant language if it won't produce tangible results? I assume there is cost in setting up the Network in these places. Otherwise they could have done it much sooner and easier.

That ties into the 170 countries thing. Again, the Falkland Islands and their 3000 residents getting the Network isn't going to make things better.

I disagree. Thinking about the numbers from the old singular PPV model, it is pretty clear that people can easily live without eight or nine PPVs. I expect the $80 a year that WWE will lose from people will be greater than the extra $40 it brings in from other people.

That's one where we'll have to wait and see. At the end of the day, spending $10 is a lot easier than spending $60. If they can basically change the mentality to "you can get a PPV for $10", they'll be in better shape.

True and the Network has picked up some great sponsors. I just don't know the impact. I did read an article where WWE stated that the "project was not expected to be meaningful enough to require it to adjust it's overall econimc model.". I won't pretend to understand what that means.

I won't either. I tend to stick with the common sense approach in business.

I agree that this is not panic mode. I just see The Network as failing right now and far from a guarantee it will ever succeed. I also see the singular month model as risky and could lead to less revenue and more administrative cost (I.e. - I think they're making a mistake).

I think it works out in the long run. They can still tweak whatever they need and hack away at the rest of their budget to balance things out.

Agree. I think it is failing but not a failure. I was impressed that they even broke half a million domestically. They have made mistakes but they needed to change things at some point as PPV dies.

Yeah they have to. PPV is dead but laughing at the fans that still pay it isn't doing them any favors.

 

[Cereal Killer]

Why reach out to any foreign country where English is not the dominant language if it won't produce tangible results? I assume there is cost in setting up the Network in these places. Otherwise they could have done it much sooner and easier.

I think it'd be a good idea if they allowed foreign subtitles of one's choice. They could allow you to change the language of the site I guess and in Spain, the RAW episodes could feature the Spanish commentary. I'm sure that would attract non-English speaking fans.

 

[George Steele's Barber]

I think it'd be a good idea if they allowed foreign subtitles of one's choice. They could allow you to change the language of the site I guess and in Spain, the RAW episodes could feature the Spanish commentary. I'm sure that would attract non-English speaking fans.

One thing I didn't know when I wrote this was that the recent foreign country rollout was English based. They certainly need to add more languages to up subscribership. Hopefully that will help in foreign markets and they can do it pretty cheap.

On the other hand I also didnt realize these numbers were as of September 30th. I wonder how many people let their subscriptions run out since then.

 

[red ass skull muhfukkah]

I think something they may not have thought of is the fact that most wrestling fans, even avid watchers like myself aren't interested in entire PPVs from the past just certain matches. I have only watched a handful of PPVs in their entirety and sometimes find it difficult to just jump to the match I want. It's much easier and free to just hop on YouTube and type in the match.

I never payed $60 upfront, I pay $9.99 here and there if I'm interested in the PPV. I did it for Summerslam but stopped after the month and I probably wont subscribe until the Royal Rumble. YouTube, poor user interface and structure, and lack of interest in the what they're presenting product wise; made me unsubscribe and a few of my friends as well.

It's an interesting concept but for me the money isn't worth it when YouTube does it better for me and is free.

 

[FlexAmerican Dynamite]

Also factor in that their newest game is getting shitty reviews, not a good week for the E.

 

[Reflection]

They should've launched the network on cable/DBS TV rather than on internet. In countries like ours where internet is slower yet expensive (that are a part of their future network expansion plans), I don't think they will gain too many subscribers here either, irrespective of whether they dub in local languages or whatnot. As for America, the old argument turned out true- most people simply aren't crazy about pro-wrestling anymore. Aaaaaand... a lot of which could be attributed to the product sucking to that extent that one is compelled to look at many things from a "logical" (rather, pro-WWE) point of view in order to enjoy them.