WWE Network - They could have made so much more money....

[Bobholly39]

Think about it. I think a ton of wrestling fans order wrestlemania every year, at roughly 60$. Royal rumble is also very big, and gets a lot of buys.

Personally, I usually order 3-4 ppvs in a year, including those 2. Why not more? 60$ is a lot of money, especially if i'm unsure if the event will be worth it.

If WWE were to bring the price of PPV's down to 9.99$ instead of 60$? I'd buy EVERY single ppv in a HEARTBEAT!!! ESPECIALLY if WWE was smart about it, and didn't give you the option to buy an individual ppv for 9.99$, but rather said you only get the price of 9.99$ if you commit for the full year. Because if not, i might decide not to dish out 9.99$ in october for a shitty ppv. But if I had to pay 9.99$ every month, knowing i get both the good and bad ppvs? Hell yeah i'd do it.

So the price of the WWE Network of 9.99$ could have been reached by SOLELY giving away new ppv's. They're also giving WAAAY too much other content, way too soon, all at the same price. I think they should have adopted different pricing strategies, and they could have made so much more money.

Honnestly, here is how I believe WWE should have priced out the network - I think they would have gotten just as many subscribers, and been a ton more profitable than they're going to be.

Package 1: 9.99$ per month gives access to all 8 B-rated ppv's, access to all New Content (such as Legends show, Total divas type shows, etc), and gives access to 5 on-demand downloads per week.
Minimum 6 month commitment for this price. If not, it's 15.99$ per month.


15.99$ per month gives access to all 12 ppv, including the major 4 (SummerSlam, Rumble, SSeries, Mania), all new content, and gives access to 10 on-demand titles a week.
Minimum 6 month commitment for this price - if not, it's 19.99$ per month.


19.99$ per month gives access to all 12 ppv's, all new content shows, and unlimited on-demand titles as you want.
6 month commitment, or else it's 24.99$ month to month.


They totaly should have gone with packages like this, with different prices.

Also, other MAJOR mistake: giving away ALL ppv's from the start. I think that's overkill. Once i sign up to the network, i'll be super pumped to watch all of my favorite ppv's of all time....and it'll be really cool for the first few weeks. But then i'll get bored of it once i figure i have checked out all i wanted to. If they only added a few titles at a time, at least i'd have stuff to look forward to. Imagine if they advertized "June 2014, ALL of the Survivor Series PPV's become available". July 2014 all the In your house ppv's from 1998-1999. They need to add a little bit at a time, to give people stuff to look forward to.

I'm not saying the WWE Network is bad by any means, i think it's going to be fantastic. I just am in disbelief at the price, when i think WWE could have made so much more money off of it.

 

[boywithbluehanger]

You have to remember that WWE Network is competing with other streaming services. They can't charge much more than $10/month because everyone already knows that streaming services charge around the same amount per month for services that offer a even larger variety of films and TV shows.

They're trying to keep their pricing competitive. Otherwise people who already subscribe to Netflix and the like, would roll their eyes at the price tag. Also it's important to understand that they have the ability to raise their fees. It's not like this dreamland of $9.99/month is going to last until the end of time.

 

[Ol'Canucklehead]

The problem with your theory is all you can see are dollar signs. Think quantity, not dollars. They will have more people watching the PPV's at that price and make more money than they ever did. That will make more interest in the product and that will trickle down in other aspects. Merchandise, ticket sales, etc... They have truly given back to their fans this way too. I'm already getting tired of the negativity towards the network, although minimal. Keep looking for a downside. There isn't one.

 

[zhaff2004]

They're going to be making a killing from this. Look at it like this, firstly, they split all PPV sales with the distributor. I believe its something in the region of 50/50. So, for a 50$ PPV, they only really bank $25 per buy. If they bag approx 3 million PPV buys over an entire year they will take in approx 75 million dollars.

If the WWE Network takes in 1 million subscribers a month as they hope, they will be taking in 10 million a month. That equates to 120 million a year.

Factor in their break-even point, once WWE passes that break-even point, everything they make is profit. If they can take in 3 million people worldwide (I have no doubt that they will be able to do this) They will bring in at least 30 million dollars a month. (They will also almost definitely charge more to UK, EU, AU and perhaps even CAN subscribers) 30 million dollars monthly equates to 360 million annum. That is only going to help them make even more money.

Another thing to look at is their TV Rights with regards to Raw and Smackdown. WWE can use the network as a negotiating tool to drive up the price of broadcasting both Raw and Smackdown. This could help increase advertising fees and broadcasting fees, not to mention, they can basically advertise their own network for free on their shows and vice-versa.

This also helps with their own WWE studios as it gives their bad movies a guaranteed platform on which people can view the movies.

It also helps WWE and past wrestlers have an outlet on which they can host exclusive shows and what not. Imagine seeing live broadcasts of Steve Austins Podcast exclusive to the network? What about Jericho's? Scott Halls? Even Jake Robert's own show? Tremendous potential not only for WWE to lock in legends to the network but also for former talents to have a viable way to make money.

All-in-all, this is going to be HUGE for the WWE and for the talent and heck, if you want to make some money, go and buy WWE shares before they sky-rocket in value

 

[bxbigshow]

Also remember this is an initial price offering. They (WWE) still has room to raise prices any time the y want.

They could offer this initial price good for the next year. Then raise to $12 a month after....and maybe Wrestlemainia may not be available next year fpr new subscribers. Separate for $10.

This way those who jumped on board early gets a sweet deal. The late comers still get a good deal, and they can pay for Mainia separately. And WWE is not milking everyone.

 

[hacksawrowdyhogan]

Will it be easier to get the free ripped ppvs on my computer? Hate how they always stream slow and offer cruddy services you must download. No I am cheap and prefer to spend discretionary income on pistons and tigers tickets.

 

[Strife3]

Ok I have to respond to this threat with a comment of 'Really?' your gonna tell WWE how to run things?

Are you a millionaire? Do you hold a company in your hands? My guess is No. Why don't you see how WWE handles it's network and stop letting Eric Bishoff be right when he says the IWC doesn't know anything. If you read the full story they will STILL be doing PPV's for those who do not wanna pay for the network. Personally 2/24/14 can't come fast enough for me to watch my new fav channel.

 

[Pedigree1]

I have said this once,and i will say it again. WWE is extremely smart in doing this,there will generate so much more revenue than they ever thought possible in doing this. By doing this,there setting the bar so fucking high,that even the mighty UFC wont be to match this. And yes i know there two different ran companies. How many millions follow WWE and how many more order their 45 dollar PPVs? With what there offering,how many more millions will follow them?

Even the older fans who have not watched in a while might find themselves rewatching WWE all over again and falling back in love. They cant charge much more than 10 bucks with all the other streaming services out there ala Netflix and Hulu!! Its amazing with what there doing

 

[Metalhead0290]

I have a strong feeling after a year or so when the recoup their start up costs they will hike up the price a bit. I understand they are competing with other streaming services, however I feel that since this is serving a very niche product that they can justify pricing it higher in the future. I would be 100% willing to pay $20 per month with a 6 month commitment. I have seen a few different vague reports. Are all past RAW and Smackdown episodes included in the VOD service just like all of the past PPV's are? If so, I would go even higher than $20 per month. I have been dying to relive '96 to '05 or so for a long time. I would literally savor it and watch one episode each week just like when it originally aired.

 

[closet_fan]

If they start jacking up the price after seeing so many people signing up for the $10 a month, it better not be by a lot. The sole reason so many will sign up is because that initial price is so outrageously cheap. But if they continue to raise the price, there will be many who start dropping out. I am sure those who are willing to spend another $20-$30 will make up the difference, but doing it a few more times could wind up hurting the overall basis of why people loved it in the first place: So much for so cheap a cost. I will likely get it. But if it turns out it's a ruse to get a bigger subscription fee down the road, I will have no choice but to bow out. I, myself, can only pay so much when I have other responsibilities like a mortgage, bills, groceries, etc.

I can still watch anything I want in regards to PPVs for free now and the back content will always be around, no matter how hard they try to get rid of it. No HD? That really won't bother me.

 

[faltemer]

Will it be easier to get the free ripped ppvs on my computer? Hate how they always stream slow and offer cruddy services you must download. No I am cheap and prefer to spend discretionary income on pistons and tigers tickets.

Well, Pistons tickets are just a complete waste so......

As far the network, WWE is a multimillion dollar organization, and stating you know for a fact that they did something so monumentally huge incorrectly is idiotic. As many have said, this is what they offer the first year, because just like Netflix, they can always pull the old bait and switch later. And B, looking at the number of subs they wanted this is a fine price, and would only make them money. Also, I havent heard a thing about downloading from the service, because why would you when you could just stream it?

 

[BestWrestlingOpinions]

It's one thing criticizing the talent they promote to the main event, the talent they bury, the storylines they give etc, because it affects your entertainment. It's good to voice your opinion on what you think should be done, because, quite frankly, you know what entertains you.

The financial side is a whole new level though. The WWE, when it comes to financial issues, are pretty much the best. Do you know more economics than the professionals in the WWE? I don't think so. Vince and Co are million-billionaires and you would think they would know a thing or two more about how they wanna go with this. You are not even close to having the financial success or the knowledge to suggest what you said.
Obviously, they have thought of this over and over again and came to the conclusion that for the moment, this package is the best. It seems cheap to me, and I won't have a problem subscribing for it.

 

[johnbragg]

I have to answer the folks who are saying "Who is the OP to question Vince McMahon's financial genius? Are you a millionaire?"

First of all, I disagree with the OP--I think this is a brilliant move. This is the biggest change to WWE's business since the Attitude Era.

But not everything Vince McMahon does turns to gold. He makes more good moves than bad moves, but he's made bad moves. The XFL, the World Bodybuilding Federation, the WWF restaurant, the WWF or WWE music division. WWE Films was saved by the Rock becoming a movie star, but without him I don't know if the division survives.

He ended up regretting going from USA Network to Spike and Viacom. WWF found a way for the WCW Invasion angle to fail, and for the NWO invasion to fail a year later.

I'm just saying it's not legitimate to say "Vince McMahon is richer than you, so he knows better" as an argument.

That said, I think they probably did run estimates on how much more they could get by squeezing heavy users (having a basic tier with less stuff and a premium tier with more stuff) and it probably wasn't worth the lost goodwill--the people who would buy the premium tier are also very prone to nerdrage if angered, and very prone to praise WWE Network excessively if happy.

 

[Mustang Sally]

Remember, this is only the start-up price. At $9.99 per month, it's a tremendous deal.....but it won't remain one forever. The company wants to sign up as many people as they can at the outset.....then watch what happens to their pricing after a couple of years.

The first "In Your House" PPV went for $14.95. Now, it's triple that amount, right? Don't think when WWE first established "In Your House" in 1995 they didn't already have a plan to start boosting the price as soon as possible.

In a few years, the company might split off the major PPVs into a separate package, meaning we can still get Wrestlemania at a bargain if price if we remain subscribers to the network, but the main 4 won't be included with all the other goodies in the monthly package, as they will be at the beginning.

I'm not putting down the concept of this network......but understand that what they're offering now is almost too good to be true, so there will be adjustments as we go along, and they will be well in excess of regular cost-of-living increases.

 

[JJ15776]

WWE is a near billion dollar company that's spent who knows how many millions of dollars over who knows how many years devising the best possible way to do this. OP, how much money did you spend researching what works and what doesn't in the streaming industry? How many polls, surveys, and focus groups did you do? How many people do you have working for you for the sole purpose of telling you want people want and how to maximize your profits, having gone to college and likely spent years working at other companies to gain experience and prove they're good at their job?

Seriously, think about it. You really think they didn't consider doing what you proposed? I'm sure you realize that's not some genius system that nobody's thought of before and could revolutionize the streaming business. Clearly WWE had that idea on the table so, obviously, if that would have made them more money then they would have instead done that.

Let me put this as simply as possible. I'm going to subscribe to the WWE Network within five seconds of it being available, and I'm going to be subscribed every month of every year for the rest of my life if it stays at that price. If they were doing what you suggested, I'd have little to no interest in it at this point. They wouldn't get nearly as many subscribers that way, which is why they didn't do that.

 

[Bobholly39]

Remember, this is only the start-up price. At $9.99 per month, it's a tremendous deal.....but it won't remain one forever. The company wants to sign up as many people as they can at the outset.....then watch what happens to their pricing after a couple of years.

The first "In Your House" PPV went for $14.95. Now, it's triple that amount, right? Don't think when WWE first established "In Your House" in 1995 they didn't already have a plan to start boosting the price as soon as possible.

In a few years, the company might split off the major PPVs into a separate package, meaning we can still get Wrestlemania at a bargain if price if we remain subscribers to the network, but the main 4 won't be included with all the other goodies in the monthly package, as they will be at the beginning.

I'm not putting down the concept of this network......but understand that what they're offering now is almost too good to be true, so there will be adjustments as we go along, and they will be well in excess of regular cost-of-living increases.

They won't really have the option to raise the price too much. Sure, they can go from 9.99 to 10.99, and maybe even 12.99 within a few years. But it's not like they can go from 10 to 20$. A ton of people who have signed up for 10 would think 20 is outrageous and not sign up over.

Let me try to present my arguments a bit better.

I agree with a lot of what people are saying, that the WWE Network is an amazing idea. I too believe they will severly compromise the value of UFC, when it costs 9.99$ for WWE ppv's vs 45$ or more for UFC. However, I feel as though there are 2 things the WWE are offering with the Network:

1. Current PPV's

2. WWE/WCW/ECW Historical content.

As a WWE fan, i can tell you that I would sign up for 10$ in a heartbeat if it garanteed me every ppv. I buy a few every year anyways, and i'd have no prob paying 10$ to get the crappy ppv's in HD vs having to stream them, or read the results afterwards. So, as an offering, all current ppv's for 10$ a month? I think that's an incredible value.


Next, as a long-time fan of the WWE product, im SUPER excited about the historical WWE ppvs. I can't wait to watch the survivor series elimination matches again, or the Royal Rumbles, the Manias....to watch when Hogan was on top, to watch the McMahon/Austin era, etc. Again, I wuold pay 10$ in a heartbeat for that.

Next. Aside from PPVs, what about all the rest? What about WWE Raws, or smackdown episodes? PPV's are cool, but most of the off-the-chart stuff happening during the monday night wars happened on TV, not on ppv's. It would be AMAZING to be able to rewatch those, chronologically.

And what about other stuff? DVD content, such as documentaries? Did anyone here see the Bret Hart/HBK rivalry dvd with JR? Or maybe the Hogan Biography, or Stone Cold's? Those are always really cool things to watch i think.


With SOOOO much content. I think the WWE could easily have gotten away with more than a "basic" subscription plan. I'm not saying what they're doing is bad, or that they won't make a lot of money, but i do think they could have made more. I feel there would be enough demand to do so. They can have a basic plan at 9.99$, a premium plan at 15.99$ and an extreme plan at 20.99$, or something like that.

OR

They could have had something completely different:

9.99$ a month gets you every NEW ppv, period.
for old on-demand content? 5.99$ extra gets you old ppv's, 10.99$ gets you RAWs, etc.

Does everyone here really feel this is a bad idea? That they couldn't have generated just as mcuh demand with similar plans? I'm not saying they should make it 40$ a month, keep it within the 10-20$, and offer various packages.

 

[Jack-Hammer]

Most WWE ppvs cost somewhere around $45 bucks, with the exception of WrestleMania. With the WWE Network, you pay a total of $120 a year for access to every WWE ppv of the year, original programming like NXT and, eventually, the entire WWE tape library. Personally, I think it's a helluva deal, especially when you consider the vast amount of footage owned by WWE. We're talking the tape libraries of companies like Mid-Atlantic Championship Wrestling/Jim Crockett Promotions/World Championship Wrestling, Championship Wrestling from Florida, Georgia Championship Wrestling, Central States Wrestling, American Wrestling Association, NWA Tri-State/Mid-South Wrestling Association/Universal Wrestling Federation, World Class Championship Wrestling, Stampede Wrestling, Extreme Championship Wrestling, Ohio Valley Wrestling from 2001-2008, Deep South Wrestling from 2005-2007, Smoky Mountain Wrestling, Maple Leaf Wrestling and Global Wrestling Federation. So if you're an old school wrestling fan, having access to ALL those 100,000 hours+ of footage is more than worth $10 a month. They won't have all of that footage available in the beginning, as it'll take time to upload that much content. As of right now, however, there'll be in excess of 1,500 hours of content from the libraries available

As far as WWE making more money from their ppvs via lowering them all to $10 a month, you're forgetting that WWE is just now launching the network. In time, I'm sure they'll come up with various sorts of packages that you can sign up for, all of which will be a different prices. Right now, WWE is keeping things extremely simple and cheap as a means of generating buzz about the network and in getting people to subscribe. When/if the network becomes a solidified, established success with a healthy amount of subscribers, then that will be a time in which they can consider expanding the network via package offers that will bring in more money. They've been working on the network for the better part of 3 years, so I'm sure they've considered every angle that the OP mentioned and then some. They haven't gone into this with their eyes closed and their fingers crossed.

Let's say that WWE is able to get the 1 to 2 million subscribers they're hoping for in 2014. That's anywhere from $120 to $240 million in revenue that they don't have to share with the cable & satellite companies that currently carry their ppvs. All the money generated from ppv buys doesn't go into WWE's pockets as a percentage goes to to the cable & satellite carriers. I'm not sure how serious the threats are from DirectTV to drop WWE ppvs because I'm guessing that not every WWE viewer is going to subscribe to the network, thereby leaving them to order the ppvs traditionally. DirectTV might not make as much money, but I think they'll still be getting a decent chunk of change. It might result in companies like TNA & Bellator getting a greater ppv presence & hype, but WWE is long proven money for DirectTV, so I'm guessing they'd rather get some WWE money than no WWE money at all.

 

[johnbragg]

WWE _still_ has the option of launching the WWE Network we all expected them to launch--a subscription-tier cable TV station with regular programming--reruns of Raw and Smackdown, second-tier TV shows like NXT, and classic footage from the tape library. Just because these are available online doesn't mean you can't show them on a cable channel.

 

[closet_fan]

People like me have doubts that this $9.95 is beyond too good. That's the problem. It's beyond too good to be true. I don't fault people for worrying once 2014 is done.

Even a hike of another $10 a month could be too much for many. Hell some people are just trying to figure out how to scrape the $60 just to sign up for the 6 months. If it goes well and the WWE makes a lot more money than they even thought, hiking the price will wind up being a concern.

No one is hoping it fails. I've yet to see anyone even remotely say that. The people who are bitching about those "bitching" don't get that we aren't. We want this to be hugely successful. But with everything that seems "too good to be true," there has always been a catch down the road.

 

[Kizzo]

WWE tried to keep it simple. That's why all streaming services just offer "one price" not multiple price points. When you start doing basic subscription, premium plan, and platinum plans it just gets too complicated; especially when you are just now getting started. Although it's possible in the future they may reevaluate the price point and raise it to $12.

Also who am I to question what they come up with? I haven't done the research, surveys, or detailed financial analysis to offer an alternative business plan. McMahon pays his MBA "six figure" analysts/executives to do all the research needed to come up with a solution. From their research, McMahon agreed that this was the most practical solution it seems.

 

[THE Madcap]

I think we're missing a very very big point and reason for WWE to do this; to control PPV piracy. For example, I live in the UK, for us, we get a selection of PPV's free with our Sky Sports subscription, the rest tend to be £14.95 (the ones Sky had to buy back from Channel 4 + the big 4 PPVs). Aside from Wrestlemania, (that I attend) and the Royal Rumble (that I watch with a group of pals), I will not purchase a WWE PPV, purely because I work and the time difference means I will either TiVo it if the PPV is free or stream/download it if it isn't.

If the WWE hook the hardcore IWC wrestling fan (who loves the old school stuff and who doesn't pay for PPV's), they have $120 of their money, where they would have very little previously.

WWE Network will see a growth in eyes on their PPVs, which means more bargaining power for advertising revenue. In addition to this, WWE are better positioned to negotiate better TV deals, as they can easily put Raw & Smackdown on their own Network and take the advertising revenue away from the networks.

Also, I don't believe the price will need to change much if at all. If Netflix can make money at £5.99 a month, WWE will make money at $9.99, seeing as they already own all the content. It's just the platform as a fixed cost that will cost them money and as soon as they hit their break-even point, as one poster said, they will continue to make money.

Now can anyone tell me how I can get it in the UK when it launches?

 

[Serious Mozzarella]

They're competing with other streaming services while giving away content they wouldn't have made money on in the first place. I guarantee you, they're going to be making more money on PPVs, for two reasons:

1. It gives people who weren't originally buying PPVs (except for WM, and maybe the Royal Rumble) an incentive to actually buy them, and

2. PPVs aren't their primary source of income anyway.

They're also giving us content that wasn't making (or wouldn't make) them a considerable amount of money anyway, like DVDs, old Raws, and wrestling-RELATED programming, like Legends House or whatever their reality show was.

They have a lot on their plate, and they needed to remain competitive.

 

[lil steroid meat]

People aren't that thirsty to pay 20 bucks a month for a majority of stuff that is currently on YouTube.

HD isn't enough to justify 20 bucks a month. It's priced perfectly now.

 

[NegativeFeedback]

Think about it. I think a ton of wrestling fans order wrestlemania every year, at roughly 60$. Royal rumble is also very big, and gets a lot of buys.

Personally, I usually order 3-4 ppvs in a year, including those 2. Why not more? 60$ is a lot of money, especially if i'm unsure if the event will be worth it.

If WWE were to bring the price of PPV's down to 9.99$ instead of 60$? I'd buy EVERY single ppv in a HEARTBEAT!!! ESPECIALLY if WWE was smart about it, and didn't give you the option to buy an individual ppv for 9.99$, but rather said you only get the price of 9.99$ if you commit for the full year. Because if not, i might decide not to dish out 9.99$ in october for a shitty ppv. But if I had to pay 9.99$ every month, knowing i get both the good and bad ppvs? Hell yeah i'd do it.

So the price of the WWE Network of 9.99$ could have been reached by SOLELY giving away new ppv's. They're also giving WAAAY too much other content, way too soon, all at the same price. I think they should have adopted different pricing strategies, and they could have made so much more money.

Honnestly, here is how I believe WWE should have priced out the network - I think they would have gotten just as many subscribers, and been a ton more profitable than they're going to be.

Package 1: 9.99$ per month gives access to all 8 B-rated ppv's, access to all New Content (such as Legends show, Total divas type shows, etc), and gives access to 5 on-demand downloads per week.
Minimum 6 month commitment for this price. If not, it's 15.99$ per month.


15.99$ per month gives access to all 12 ppv, including the major 4 (SummerSlam, Rumble, SSeries, Mania), all new content, and gives access to 10 on-demand titles a week.
Minimum 6 month commitment for this price - if not, it's 19.99$ per month.


19.99$ per month gives access to all 12 ppv's, all new content shows, and unlimited on-demand titles as you want.
6 month commitment, or else it's 24.99$ month to month.


They totaly should have gone with packages like this, with different prices.

Also, other MAJOR mistake: giving away ALL ppv's from the start. I think that's overkill. Once i sign up to the network, i'll be super pumped to watch all of my favorite ppv's of all time....and it'll be really cool for the first few weeks. But then i'll get bored of it once i figure i have checked out all i wanted to. If they only added a few titles at a time, at least i'd have stuff to look forward to. Imagine if they advertized "June 2014, ALL of the Survivor Series PPV's become available". July 2014 all the In your house ppv's from 1998-1999. They need to add a little bit at a time, to give people stuff to look forward to.

I'm not saying the WWE Network is bad by any means, i think it's going to be fantastic. I just am in disbelief at the price, when i think WWE could have made so much more money off of it.

People outraged when Netflix boosted their price. You think people will pay 20 bucks a month to WWE? Get real. The people who subscribe to the WWE Network are the Netflix crowd, the Hulu crowd. It won't be the people who don't subscribe to anything else. You can't ask them to boost their monthly bill on entertainment offerings, especially when WWE will expect them to have cable TV to watch their weekly shows.

$10.00 a month is still more expensive than Netflix Streaming, which has tons of more re-watchability than watching a bunch of old Raws and reality shows on the WWE Network. It's a gamble without the price boost, anything more would be suicidal.

 

[NegativeFeedback]

They're competing with other streaming services while giving away content they wouldn't have made money on in the first place. I guarantee you, they're going to be making more money on PPVs, for two reasons:

1. It gives people who weren't originally buying PPVs (except for WM, and maybe the Royal Rumble) an incentive to actually buy them, and

2. PPVs aren't their primary source of income anyway.

They're also giving us content that wasn't making (or wouldn't make) them a considerable amount of money anyway, like DVDs, old Raws, and wrestling-RELATED programming, like Legends House or whatever their reality show was.

They have a lot on their plate, and they needed to remain competitive.

Agreed. If we do the match, WWE keep about 40-50% of their PPV intake.

The price is around $60, so most fans only buy around 2-3 PPVs a year. Fans who watch more than that are definitely group-watching and splitting the price.

In 2013, you would have 4 people splitting three $60 PPVs a year, netting WWE about $96-120 in yearly income from those 4 guys' PPV habits. If they buy into the hype of the Network, each one will probably subscribe and pay $10 a month, netting them $480. It's good business.

And here's the genius part. By forcing them to subscribe for 6 months at a time, they guarantee that each subscriber is at least netting them a little over 2 PPV buys per person. That's excellent business, because even if the person unsubscribes from the network, they would have contributed the same amount they would have had they individually purchased PPVs instead (Their $60 for six months would equate to WWE's intake of 40-50% of 2 PPV Buys).