The Hollywood Reporter reports that the WWE Network will be a part of You Tube’s initiative in creating 100 different channels online with the site. Although initial speculation was that the WWE Network would be on cable television, the unprecedented move allows the WWE to circumvent negotiations with cable providers.
Via the Hollywood Reporter (h/t Cageside Seats):
In a low-budget early effort to compete with satellite and cable TV providers, YouTube announced Friday that it has partnered with several entities to roll out television-style channels with professionally produced shows that will strike a sharp contrast to the short videos of crazy cats, skateboard wipeouts and other amateur content that made the site famous.
Insiders said the Google-owned property has shelled out some $150 million in advances for the creation of about 100 channels, with a maximum $5 million going to any single channel. Financial details were sketchy on Friday, though The Wall Street Journal reported that deals call for YouTube recouping its advances then giving as much as 55 percent of the ad revenue to the content creators.
The WWE began airing commercials for a network earlier this year with the start date being in 2012. The network is planned to roll out around the next Wrestlemania this spring 2012.
Payout Perspective:
For WWE fans, this is not what was expected but it is probably the best strategy for the WWE at this point. As we have seen from the Direct TV-Fox contract dispute, the task of placing its network and negotiating a contract with cable distributors would have been difficult especially with its target roll out of this spring. If given the choice, fans would likely check out the channel on YouTube rather than pay extra money on their cable bill.
The bigger story here is YouTube (a Google owned entity) and its move to compete with satellite and Cable tv. How many people will adapt to watching television on their computers? How many will know that they can hook up their computers to televisions?
jasvll says
“How many people will adapt to watching television on their computers? How many will know that they can hook up their computers to televisions?”
It’s not hard to find a TV nowadays that has Youtube built-in…along with Hulu+, Netflix, and Amazon on Demand. Not to mention, Youtube is coming to Xbox Live within a month. Plus, there’s smartphones, and tablets, both with no config HDMI links straight to the TV.
I think we’re past the internet on PC only paradigm.
Yan Desjardins says
Business is about to pick up for Google TV.
Jason Cruz says
@jasvil
Good point. I think the question is whether non-tech folks can adapt to the changes. For as much as people adopt, there are still quite a few that are late to the party.
Diego says
Jason,
I’m pretty late to the party. I don’t think my TV is configured for YouTube, I don’t know how to hook up my laptop to it, and I’m not getting a new TV just to watch internet channels.
At this point in the development of internet TV it is definitely second best to cable and satellite in terms of viewership. I’m sure the YouTube max of $5M per channel is a lot less than the WWE were hoping to get for their content. With that said, it’s a good forward-thinking move, as I’m sure the market will grow.
Candi says
Thats dumb. I was hoping for a wwe network on TV, not the damn internet!! I would gladly pay extra on my cable bill.. But I dont have a laptop, just this damn ipod touch!! I dont wanna watch shows on this tiny screen!!
PISSED OFF IN TEXAS says
Come on Mc get with the programing. You have the biggest balls in the busneiss. Hell take a chance you’re good at that. You gambled on the WWE and look what it grew into. And don’t forget the XFL oh wait you might want to forget that one. Come on Pop we fans deserve the WWE network on t.v. not some damm cut rate laptop version on YouTube. That sucks!!!!!!! Almost as much as Michael Cole not quite but almost.