Wrestling WWE IX: A Solid B+

[marvell2k]

It does mean something, it means there is a slightly increased interest. People also talked about how 3 hours would kill Raw and the numbers haven't dropped, it has grown at points.

^^^^

Same guy who likes to bring up the point about how WWE under Cena has hurt business. Can't be both brother.

[alex]

^^^^

Same guy who likes to bring up the point about how WWE under Cena has hurt business. Can't be both brother.

Cena wasn't the most heavily pushed guy for a portion of the last year, they are down since the cena push originaly started, but they aren't down since going 3 hours.
That's skirting the issue anyway. An increase in attendance is an increase in attendance, if revenue doesn't follow suit it doesn't mean more people didn't go to the shows or more people aren't watching on tv. But that's also entirely seperate from the network, they aren't doing the same numbers on tv because of the network.

[marvell2k]

Some major news coming out of the WWE today (At least they aren't TNA)

*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.

*For the quarter, the company recorded $156.3 million in revenues and lost $14.5 million.

*The WrestleMania quarter last year took in $152.3 million in revenues and had $5.2 million in profits.

*On a world wide basis, WrestleMania did 690,000 buys, Extreme Rules did 108,000, Payback did 67,000 and Money in the Bank did 122,000. For 2013, those shows did 1,104,000; 245,000, 198,000 and 223,000 last year. Keep in mind U.S. totals for all shows were way down, but in theory (not fact), international should be the same. It's not, due to the number of international subscribers to the network.

*TV revenue was up from $38.7 million to $43.8 million due to Total Divas and some international contract gains.

*Digital media was down from $7.4 million to $5.2 million due to less Internet PPV purchases of WrestleMania and the other shows.

*House show attendance was up 13% domestically, misleading because they had 11 fewer shows, meaning the higher attended TV tapings make the average look higher. Because of fewer events and smaller overall attendance, arena merchandise was down 7%. This doesn't include WrestleMania, which was down this year due to a lower attendance and gate. International was down 8%

*Licensing was down due to lower video game sales.

*WWE shop revenues increased 33% from $3 million to $4 million because of an increase in orders. A lot of that increase was due to a new distribution model in the U.K. utilizing Amazon.

*Bryan and I will be doing an audio on this available this afternoon. A full breakdown of this and more WWE business items will be in next week's Observer.

[alex]

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.
So given that, tell me how it's going to be a failure?
They have 700k us, they are going to be able to break even at 500k and they are going worldwide.

[marvell2k]

Cena wasn't the most heavily pushed guy for a portion of the last year, they are down since the cena push originaly started, but they aren't down since going 3 hours.
That's skirting the issue anyway. An increase in attendance is an increase in attendance, if revenue doesn't follow suit it doesn't mean more people didn't go to the shows or more people aren't watching on tv. But that's also entirely seperate from the network, they aren't doing the same numbers on tv because of the network.

*House show attendance was up 13% domestically, misleading because they had 11 fewer shows, meaning the higher attended TV tapings make the average look higher. Because of fewer events and smaller overall attendance, arena merchandise was down 7%. This doesn't include WrestleMania, which was down this year due to a lower attendance and gate. International was down 8%

[marvell2k]

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.
So given that, tell me how it's going to be a failure?
They have 700k us, they are going to be able to break even at 500k and they are going worldwide.

Brother they would have been better off sticking with PPV's that's why. Quit doing your Rovert impression. Who's to say that the month to month doesn't kill them. A lot of people will just subscribe for Mania and that's it.

[alex]

Brother they would have been better off sticking with PPV's that's why. Quit doing your Rovert impression.

...Ok, but it just said they will break even at a number they surpassed and if they hit 1.4 million ever they will be making more then they ever did.
Are we really going to undersell that the network isn't losing money next year.
Stop doing your TNA fan impression?

[BeastieRunner]

Whatever is going on with Roosh is instantly one of the top three things going in all of professional wrestling, at any given time.

I'm steadfast in my belief that Roosh could succeed in WWE. His whole deal transcends language.

So this $60 one time fee ... for 6 months or a year? Because if it's a year ... hello new subs! Also $20 for a month? I can get Rumble and Mania, maybe Summer Slam and pour more money into NJPW that way.

[alex]

6 months i beleive, they just give you the option to pay up front.

[marvell2k]

...Ok, but it just said they will break even at a number they surpassed and if they hit 1.4 million ever they will be making more then they ever did.
Are we really going to undersell that the network isn't losing money next year.
Stop doing your TNA fan impression?

Let me ask you this brother. Given everything that's happened and where we are now was the network really worth it or were they better off staying on PPV?

[alex]

Let me ask you this brother. Given everything that's happened and where we are now was the network really worth it or were they better off staying on PPV?

An entirely new business model can't be determined in one year.
When you say we, yes, we are better off because i get more content and everything is cheaper.
When you ask if they are better off, well, that says they are already going to be breaking even and if they get a number that is entirely possible (the old break even number) they will be in a better spot then they ever have been in.
You are judging based on 3 months and limited availability, this is knowing that it isn't a technology that is as open as it will be in the future, or as adopted. This is before it is launched worldwide.

So right now, at this very moment, it's worse. But a company that is only worried about what's currently going on is doomed to failure.

[marvell2k]

An entirely new business model can't be determined in one year.
When you say we, yes, we are better off because i get more content and everything is cheaper.
When you ask if they are better off, well, that says they are already going to be breaking even and if they get a number that is entirely possible (the old break even number) they will be in a better spot then they ever have been in.
You are judging based on 3 months and limited availability, this is knowing that it isn't a technology that is as open as it will be in the future, or as adopted. This is before it is launched worldwide.

So right now, at this very moment, it's worse. But a company that is only worried about what's currently going on is doomed to failure.

Check and mate

[Vibranium]

well struck Alex

I guess you aren't Bill Watts after all

[alex]

Check and mate

Right now, jesus, read what i type.
It's not like i don't understand these things, i went to university for it for christs sake.
You are saying "Well it's not working now so it's fail, future indicators don't matter."
Go tell that to Sony, to Apple, to IBM, to Netflix actually, and when they laugh in your face come back and tell me how i'm wrong.

[Vibranium]

when Netflix started their streaming, it was pretty abysmal and within 24 months it was the biggest thing out there