WWE Network Thread

Monokne

Deleted User wrote: »

What are the WWE's major costs here? I mean Netflix have massive rights costs and much bigger server costs yet charge less and are fine. How can WWE get $60million a month for content they already own and not be able to make a profit?

Because they cannibalised most of their pay per view profits which immediately puts them on the backfoot, and there are a lot of costs involved with running the network. The deal with MLB TV to carry the live stream is very costly, then there's the production of all the shows, and the maintenance of the channel itself, plus the server costs for the on demand content.

gerrybbadd

I know one thing, if they up the price, they're not gonna attract new customers, and they're gonna lose existing subscribers also. I know if it goes to 19.99, I'm out. €9.99 is a perfect price imo

Garseys

Deleted User wrote: »

What are the WWE's major costs here? I mean Netflix have massive rights costs and much bigger server costs yet charge less and are fine. How can WWE get $60million a month for content they already own and not be able to make a profit?

MLB Advanced Media take a cut aswell afaik

EDIT: Monokne beat me to it.

Agent Coulson

I wonder is the delay on releasing it here and the UK because they are going to do the same as in Canada and make it a tv channel.

SKY would love that.

Monokne

Agent Coulson wrote: »

I wonder is the delay on releasing it here and the UK because they are going to do the same as in Canada and make it a tv channel.

SKY would love that.

The delay is waiting on the new deal to kick in so all PPV's are on Sky Box Office and the network. They can't launch it while some PPV's are still on Sky Sports.

Ape Lincoln

Agent Coulson wrote: »

I wonder is the delay on releasing it here and the UK because they are going to do the same as in Canada and make it a tv channel.

SKY would love that.

Was thinking this myself. Sky have that "Anytime" on-demand feature on their Plus boxes don't they? I wonder could that be utilised.

Another thing on the costs in addition to digitising the content, MLBam's cut is that they may have cut bad deals with the providers like Apple TV, Sony etc. to get it onto those various platforms it is on. UFC's Fight Pass by contrast (afaik) is only on their website and either Roku
or Apple.

EDIT: This is the second post with terrible maths so I'm just gonna leave it. :pac:

Garseys

Monokne wrote: »

The delay is waiting on the new deal to kick in so all PPV's are on Sky Box Office and the network. They can't launch it while some PPV's are still on Sky Sports.

but wouldn't that set back the Network release date until after TLC (The last PPV on Sky Sports).

citytillidie

Garseys wrote: »

but wouldn't that set back the Network release date until after TLC (The last PPV on Sky Sports).

SKY can and have switched around which PPV's go on Sky Sports and which go on Box Office

Monokne

Honestly, I don't know. My hunch would be that they are panicking because it's been such an outright failure and rushing international, so perhaps agreed a sweetheart deal with Sky and arranged to move around what's on SS and what's on SBO.

Blue_Dabadee

I would hate if WWE Network is a pay-TV channel for us unless they allow us to use WWE Network app for all devices as well.

Garseys

citytillidie wrote: »

SKY can and have switched around which PPV's go on Sky Sports and which go on Box Office

Monokne wrote: »

Honestly, I don't know. My hunch would be that they are panicking because it's been such an outright failure and rushing international, so perhaps agreed a sweetheart deal with Sky and arranged to move around what's on SS and what's on SBO.

Cheers for clearing that up.

beakerjoe

mxph3 wrote: »

I would hate if WWE Network is a pay-TV channel for us unless they allow us to use WWE Network app for all devices as well.

But we already are using the network, even if they did, using the US unblock it would affect you.

Monokne

beakerjoe wrote: »

But we already are using the network, even if they did, using the US unblock it would affect you.

Just thinking the same thing.

If the price over here is any more than the cost of Unblock US & the network (works out right about a tenner (euro) for me) I'll just stick with US version. Similarly, if there are any features or content missing on the UK version, I won't move to it either.

One key thing - when they do their incessant TV plugs for it, they've never specified that it's US only. That's probably created an appetite for it internationally from people who go to subscribe, then find that out, and look for a workaround.

Dave Meltzer reported 80,000 subscribers in GERMANY alone. Worldwide surely can't be below 150,000.

Ape Lincoln

Another thing to consider wrt the Network in Europe is their home video deal with Freemantel. Even at £20 per month for Britain or Ireland this would still be cheaper than their DVD and blu-ray sets.

Blue_Dabadee

I see a lot of Canadians on Reddit that are not happy with the type of deal they got with WWE Network.

Ape Lincoln

mxph3 wrote: »

I see a lot of Canadians on Reddit that are not happy with the type of deal they got with WWE Network.

On the conference when asked why they are going the cable TV route in Canada Vince said, "tend to look at things differently".

Ape Lincoln

The key points from today's investor conference call

http://www.f4wonline.com/more/more-top-stories/96-wwe/38247-notes-from-wwe-conference-call

Dave Meltzer notes from WWE conference call

Thursday, 31 July 2014 08:28

Some major news coming out of the WWE today

*WWE network will offer a $19.99 per month price for those who don't want to commit to the six month period. It's clear from the number of people who dropped the network even with the commitment in place that it will be much easier to just order at $9.99 and stop paying.

*A one-time payment plan has been offered. Currently subscribers are billed $9.99 per month, but now they can sign up for $59.94 and be billed all at once. The hope is that people will sign up to be billed all at once which saves money for people who decide to drop.

*The network has 700,000 subscribers as of 6/30. They didn't give an updated number. Between 4/7 and 6/30 they added 161,000 subscribers, but had 128,000 cancellations. They wouldn't give details but this is likely shortly after WrestleMania when they had the big jump in subscribers.

*The cancellation number is the huge story here.

*The network will be available in 170 countries on August 12. The key countries that affects are Australia, New Zealand, Hong Kong, Singapore, Mexico, Spain, Norway, Sweden and Finland.

*They are targeting October for the U.K.

*Countries like Italy, UAE, Germany, Japan, China, Thailand and Malaysia would be available at a date to be announced

*WWE signed a ten year deal with Rogers Communications for exclusivity in Canada through 2024. This will include all current programming. The WWE Network will be offered as a traditional television PPV channel in Canada starting August 12. That explains the recent Observer report of WWE purchasing transponder time and testing out the network feed, as a prelude to a television availability. Rogers will own not only the broadcast rights but the digital rights to all the major WWE television shows.

*There wll be massive cost cutting internally. These costs will save the company $10 million this year and $30 million in 2015.

*The cutting wasn't specified past a seven percent reduction in the workforce. It was noted that with the reduction in the work force, there will be a one-time loss of $4.5 million for severance packages taken during the current third quarter.

*They will add Monday Night War and WWE Rivalries to the program schedule shortly.

*If they average 650,000 subscribers in the third quarter, they estimate OIBDA losses of $12 to $17 million in the next quarter, but with the cost cutbacks, annual OIBDA losses would be $25 million to $35 million. Previously they had estimated annual losses (not OIBDA, but total losses) at $45 million to $52 million.

*The network itself lost $15.5 million in OIBDA.

*The cutbacks are so significant that they now feel they can break even on 500,000 subscribers in 2015 as opposed to 1.4 million subscribers and at 1.5 million subscribers they will have OIBDA of $100 million to $120 million, which is more than they had pre-network.

Blue_Dabadee

beakerjoe wrote: »

But we already are using the network, even if they did, using the US unblock it would affect you.

Yeah I will probably keep using US Unblock in order to watch US version of WWE Network, if UK version of WWE Network turns out to be a premium channel on Sky.

Agent Coulson

I also don't know why anyone would pay $19.99 a month when you can get it for $9.99 and cancel it even if you are locked into a 6 month contract.

savemejebus

Agent Coulson wrote: »

I also don't know why anyone would pay $19.99 a month when you can get it for $9.99 and cancel it even if you are locked into a 6 month contract.

I think they're changing it to a 60 upfront payment now because of people cancelling using PayPal and other loopholes before the 6 months is up.

The 9.99 per month will be finished

Lord TSC

Wondering if it'll be easier or not to just stay with the American subscription too....

rossie1977

the new breakeven point is the big story today. amazed none of the wrestling news-sites have picked it up actually. if that breakeven includes international then wwe could be generating profits beyond anything previously seen by 2016-17 when the new tv deals also fully kick in.

arrianalexander

Done a search couldn't find answer , I have signed up for wwe network watch it on laptop. And tablet , am thinking of getting an android box for TV (MINIX neo x8)
Wondering will I be able to view wwe network with this ?

Ape Lincoln

arrianalexander wrote: »

Done a search couldn't find answer , I have signed up for wwe network watch it on laptop. And tablet , am thinking of getting an android box for TV (MINIX neo x8)
Wondering will I be able to view wwe network with this ?

I am not sure what an android box is - is one of them little things you connect to a TV via USB? It's pretty tricky yo get the Network on an Android phone as you've to fiddle with GPS location stuff.

rovert

Meltzer claims the domestic Network number is closer to 400,000 right now. So 300,000 are doing the VPN deal.

Ape Lincoln

Does anyone know when they are implementing this 6 months/$60 up-front thing?

Monokne

rossie1977 wrote: »

the new breakeven point is the big story today. amazed none of the wrestling news-sites have picked it up actually. if that breakeven includes international then wwe could be generating profits beyond anything previously seen by 2016-17 when the new tv deals also fully kick in.

I agree.

I do however find it extraordinary they have somehow managed to cut the costs by over 60%. That suggests either 1) They're drastically reducing new content and overall quality of the network. 2) They were spending a lot of superfluous money or 3) They're talking out of their hoop

savemejebus

Could it be that there were high startup costs in year one that won't be repeated in future years and as such the breakeven is lowered?

Ape Lincoln

savemejebus wrote: »

Could it be that there were high startup costs in year one that won't be repeated in future years and as such the breakeven is lowered?

On-going costs would be lower yeah.