Forbes.com posted an article which features WWE chairman and CEO Vince McMahon. The article boasts the achievements of McMahon while cautioning about the risks of the WWE Network.
The article, written by Lifestyle editor Michael Solomon, is an overall positive piece on the McMahon success story. The piece highlights the company’s big investment in the network which is underscored by the fact that revenues “have barely budged (remaining at $500 million since 08) over the last few years.” This may be due to the $75 million it has reportedly spent on setting up the WWE Network. It also writes about the company’s failed attempt to establish its network as a “premium” channel to be distributed on the network. The Forbes.com piece spins this in the positive for the WWE and mostly everyone has bought into the“over the top” strategy of the network.
As it is currently set up, the network needs 1 million subscribers to break even. At 2 million subscribers, it projects adding $50 million to its EBITDA. The first numbers on the network will come out after Wrestlemania.
Due to the network, the WWE has cannibalized its PPV business which will change how the company will do business. The shift has drawn the ire of DirecTV and Dish Network. DirecTV had some harsh words for the WWE and Dish Network actually told its subscribers that it would not carry Wrestlemania XXX this April 6th. However, it has since backtracked on its stance and will now carry the show.
The article will be published in the print edition of Forbes the week leading up to Wrestlemania Sunday giving it a prime PR piece leading up to its biggest event of the year.
Quick strikes…
Television by Numbers reports the second episode of Total Divas (9pm ET/6pm PT) scored a viewer average of 1.28 million viewers on Sunday night. Thus, it did better than the last hour (936K average) of UFC Fight Night 36 although the last quarter hour featuring Rua-Hendo did 1.25 million.
Last week the WWE and Mattel, Inc. announced new kids property called WWE Slam City. In addition to merchandise, the WWE has launched a series featuring WWE characters which appears on WWESlamCity.com, YouTube and its Network. The obvious hope is that this property will facilitate continued growth in its consumer products division.
Forbes says that the WWE Network did 250,000 subscriptions on the first day.
Forbes says that the WWE Network did 250,000 subscriptions on the first day.
If it announces 1 million subscribers the day after WM, the stock may climb to $40