re: Monday Night Raw Thread: May 19th Edition

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I know the WWE is taking some hits now and the network hasn't reached the desired number yet but I think it's ahead of the curve and hope going public doesn't hurt that.

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George Barrios recaps the timeline of the creation of WWE Network. Their business analysis had come to the conclusion that their content was undervalued. He goes over how their worldwide deals will result in a significant increase in revenue. The global expansion of WWE Network will be a profitable step. If their goal of 1.3-1.4 million worldwide WWE Network subscribers is reached, it would generate approximately $40 million, which would be equal to the company’s pay-per-view business in 2012. If WWE Network were to surpass 2 million subscribers by 2015, the company would see income in the range of $125-$200 million. Additional company investments include increasing international presence, costs related to the WWE Performance Center, and other costs.

He reiterates that having reached 670,000 WWE Network subscribers around WrestleMania season, they foresee a steady increase over the rest of the year. He outlines WWE’s 5-part strategy to gain subscribers: creating new compelling content, opening the Network globally, expanding the distribution platforms, developing new features, and developing high-impact marketing campaigns.

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A caller asked about how WWE had previously said that the launch of the WWE Network would not negatively affect television deals. Vince says that the Network certainly affected the deals negatively. He said that if he had waited until the television deals were completed, however, he would have had to wait another year to launch the Network, as the goal was to release the Network around the strongest part of the year, WrestleMania season. He called it a “chicken or the egg” situation.

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