DirecTV not happy with WWE Network
January 10, 2014
LA Times reports that DirecTV may no longer carry WWE PPVs as a result of its announcement that it is launching a new over the top network.
Pay-TV distributors and the WWE usually split the cost to consumers 50-50 on PPVs thus making it a “solid revenue source,” according to the Times article. WWE contends that it will continue to air its PPVs for those unable or unwilling to adapt to the WWE Network but DirecTV sees that as cutting into its revenues.
Via LA Times:
“Clearly we need to quickly re-evaluate the economics and viability of their business with us, as it now appears the WWE feels they do not need their PPV distributors,” DirecTV said in a statement, adding that the audience for its events “has been steadily declining, and this new low-cost competitive offering will only accelerate this trend.”
The WWE stated that it hopes to continue its relationship with its distributors and allow “fans the choice between two offerings.”
Although we’ve heard nothing but praises for the WWE Network, we get the first bit of criticism from one of the company’s working relationships. From DTV’s perspective, it’s obvious that the new network is going to cut into the revenue it expects from the WWE product especially with Wrestlemania, its highest purchased and priced PPV, on the network this year. The WWE would like to get both bites of the apple with it receiving revenue from the network and those purchasing it via traditional PPV. Will other distributors follow DirecTV’s cue in discontinue offering WWE PPVs. We shall see how this turns out.