The WWE announced today that it is beginning to run limited video advertisents on its WWE Network. The subscription-based over the top network is seeking additional ways to monetize the product and the ads are a way that my aid the lagging subscriber numbers.
An email was sent to WWE subscribers today advising of the ads. It gave specifics:
• No commercial breaks during scheduled programming
• Limited advertising between shows
• Occasional advertising before our video-on-demand content
Ad Age reports that Pepsi, Mattel and Kmart are signed on for the display of ads on the WWE Network. The report indicates that media buyers are questioning the placement of ads on the network. While the ads may reach an audience of young males, there is skepticism about the growth of subscribers leaving some potential advertisers wondering if it would be more prudent to advertise on the WWE’s network shows.
Payout Take:
The ad announcement will be interesting to see in terms of its success and how many advertisers decide to sign on with the network. Certainly, ads would be something that UFC Fight Pass might entertain in the future. But, there may be concern that advertisers would annoy subscribers.
Not a good move. This is something you add in 5 years down the road. Not the first year when people already are reluctant to join. Doesn’t make sense. Not sure anyone will cancel over this but it doesn’t fuel the fire of those who are holding out. Most might cave in. But now it will take longer if ever.
If there is one thing that makes no sense is advertisement under subscription pay formats. If their network was offered for free then it would make sense to cover costs with advertisement, but the whole point of being a paid subscriber is to not be bombarded with crappy ads. And it should be the same for PPV, you should not be getting any ads when you are paying for the f****** thing, it really makes no sense but people have grown to accept it.
This is a great and necessary move. As long as they show half as many ads as TV and no more… they will be fine.
They can always ad a $19.99 option for an ad free version.