WWE group buy Network subscribers increase and down every quarter, the number has been so stable that the business model has been very successful. The growth of the subscriber is still a question mark, and it may not reach the company’s original plan with two million subscribers in the United States and 500,000 globally at any time (if any).
What is the WWE network?
However, the achievement of these senior goals should not be the way investors successfully evaluate this project. The victory is actually WWE group buy has created a distribution channel it’s more stable control than Pay-per-view. In the old days, before the network, the company always needs to efforts to build content (matches) to attract consumers to pay $ 39. 99 or more for a program. It is a risky business activity that does not always lead to a long-term plan.
Now, WWE can focus on creative resources in storytelling and developing subscriber facilities. It is a more manageable goal, this will lead to a more firm, healthier business.
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In the fourth quarter, WWE announced 1. 22 million paid subscribers, up nearly 50% over the same period last year. The company noted that WWE Network reached the highest level of all time was 1. 24 million subscribers paid on average in this quarter. It also shows that this service has gained a number of impressive goals – it cited data from Parks Associates that WWE Network was a direct subscription service to the fifth largest consumers in the US, after Netflix, Amazon Video, Hulu, and MLB. TELEVISION.
“Network segment generates revenue of 159 million dollars and OIBDA is the US $ 48 million, nearly double the average annual revenue of business activities paid for each view before launching the network”, the company said.
Why is this good?
Currently, the two most important income areas of WWE are networks and television rights transactions. Of the total $ 166 million of the company’s revenue in the fourth quarter, the US $ 106 million comes from those two segments (including the remaining PPV revenue). This network accounts for 40 USD. 8 million in that total, up from the US $ 27.2 million in the previous year. It is impressive growth, but the real long-term benefit of WWE Network is that it gives a distribution channel company if the market sells dried television rights. Obviously, the company wants to continue broadcasting its program through the basic cable in U. S. On the US network and on different channels around the world. However, if losing those transactions or cannot earn the amount it wants, the programming on its own network should be feasible.
It is a legal fear when the result of wire cutting in subscriber losses in top cable channels, can cause ripple effects in sports rights. Before the network, WWE lost the US would be a deadly shot for the company. Now, if losing the exit and cannot find another person, some audience rates (about three to four million viewers at the price.
Monday Night Raw every week) will simply add networks?
Is a better value for the company. Of course, it was an apocalypse script, but it was not frantic of an idea for the cable market to change. WWE Network may not be as big as managers hope, but it is large enough to allow the company to control its fate in the future. Secret shares are worth billions of dollars.
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