Post by BrIaNMeRcY on Jul 31, 2015 11:22:31 GMT -5
LAS VEGAS, NV – JANUARY 08: WWE Chief Revenue and Marketing Officer Michelle Wilson speaks at a news conference announcing the WWE Network at the 2014 International CES at the Encore Theater at Wynn Las Vegas on January 8, 2014 in Las Vegas, Nevada. The network will launch on February 24, 2014 as the first-ever 24/7 streaming network, offering both scheduled programs and video on demand. The USD 9.99 per month subscription will include access to all 12 live WWE pay-per-view events (pictured on screen) each year. CES, the world’s largest annual consumer technology trade show, runs through January 10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. (Photo by Ethan Miller/Getty Images)
The WWE released its second quarter earnings report Thursday, and though TV ratings are nearly at an all-time low, the average WWE Network subscriber count is at an all-time high.
The WWE Network had averaged 927,000 paid subscribers during the first quarter of 2015, which—along with the success of WrestleMania 31—helped generate the highest quarterly revenue in company history at $176.2 million. But fast forward just three months, and the WWE has already seen a substantial increase in average paid subscribers for the Network, a very promising sign for the top professional wrestling company in the world.
Though the current subscriber count of 1.1 million is a slight 13 percent dip from where it was at the end of the first quarter, that was to be expected with WrestleMania, WWE’s flagship pay-per-view, taking place during that quarter.
The truly encouraging sign for the WWE Network subscriber count is that it jumped to an average of more than 1.2 million subscribers for the second quarter of 2015, a 31 percent increase from the first quarter and further proof that the WWE Network has some much needed sustainability. That surely has CEO Vince McMahon smiling from ear to ear at a time when TV ratings for the company’s flagship show Monday Night Raw are almost laughable compared to what they were back in 1999.
Luckily for McMahon, however, the WWE’s business model has changed.
TV ratings certainly mean something, especially when it comes to attracting advertisers and keeping the USA Network happy with the performance of Raw, which has become a staple of the channel. But when the WWE Network was created, it gave McMahon and the WWE a little breathing room to struggle in the TV ratings department, with the company’s main focus being the over-the-top WWE Network.
And despite fans not tuning into Raw like they once did, McMahon must be pleased with the performance of the Network so far because creating it also created a monumental risk. If the network failed, then there was a substantial chance that—even if the WWE didn’t fail, too—it would take enough of a financial hit that it would force the company to drastically change the way it operates.
That’s not something that WWE executives have to worry about anymore, though.
For whatever reason, a stale WWE TV product and stagnant Raw ratings haven’t prevented fans from tuning into the WWE Network more than ever. Perhaps it’s because the WWE Network gives fans access to historic content from its better days. Maybe it’s because the company has continued offering free months to new subscribers. It may be because TNA and Ring of Honor, the closest things to competition for the WWE, aren’t really competition at all. It could even be because cable TV is fading away as more and more people tend to rely on the Internet to get their news and access their favorite shows and movies.
Regardless of exactly why the WWE Network has been a success while TV ratings and the general WWE product has not, though, what truly matters is that the WWE’s biggest risk has turned into its biggest reward.
No one can accurately and exactly predict what the future will hold for the WWE Network and for the company as a whole. Anything can happen tomorrow or two years from now that could change the course of the company forever.
But the average WWE Network subscriber count is as high as it’s ever been, the WWE is gauging interest in an even lower network price for pay-per-view access only, and the only other option is shelling out nearly $55 for one PPV—that’s nearly six times the price of one month of the WWE Network, which gives wrestling fans access to more content than they even know what to do with.
It’s almost as if the company has given its fans no choice: Buy the WWE Network or waste your money by spending more than you have to.
The WWE made a smart move that has paid off big time and has given the WWE Network a very bright future. A whopping 1.2 million average subscribers already proves that, but the WWE still plans on rolling out even more improvements to the Network in an attempt to attract more viewers.
Look for the following changes that we could see for the WWE Network by the end of the year, courtesy of the WWE’s Second Quarter Earnings Report:
An additional 180 hours of new original content, including new episodes of already popular shows like the Stone Cold Podcast, as well as additions to the video-on-demand library, which currently has more than 3,300 hours of footage.
A three-month subscription card, which would give Network users a payment option with “no credit card required.”
The WWE plans to “improve the user experience by enhancing the network’s search functionality, adding the ability to organize content as themed ‘collections’ and allowing non-subscribers the ability to explore the breadth and depth of programs available on the service.”
“The Company continues to develop plans for geographic expansion to India, China, Germany, Japan, and Thailand.”
The WWE Network is clearly thriving, which is good news for McMahon and the WWE because the company couldn’t afford for McMahon’s brainchild to fail. But obviously, staying content with the Network’s current success isn’t a viable option.
The WWE wants more success, and there’s one simple way to achieve that goal: The more subscribers the WWE Network gets, the more financial success the company will have.
Source: www.forbes.com/sites/blakeoestriecher/2015/07/30/latest-wwe-network-subscriber-count-is-a-great-sign-for-wwe/print/
