Vince McMahon stated during WWE’s earnings call this week that the company is in talks to sell some of its video content, including pay-per-views, to major streaming services.
Currently, WWE fans can view pay-per-views, as well as docuseries and past WWE footage, on the WWE Network whenever they broadcast for the price of £9.99 a month.
However, WWE is in the process of changing this into a tier access structure, ranging from free to £14.99 per month.
Vince McMahon said during the conference call on Thursday, via The Wrap: “Well, we have a lot of options. We could continue on as we are now, with a free tier and a more enhanced paid tier.
“Right now there’s no more better time to exercise the selling of our rights to all the majors who, quite frankly, all the majors are really clamoring for our content. So that could be a significant increase, obviously, in terms of revenue.”
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WWE’s interim CFO Frank Riddick added everything is on the table when it comes to discussions with an outside streaming partner.
Riddick said: “There’s nothing—obviously the devil’s in the details in any of these arrangements, but at this point, there’s nothing that looks like it would be anything that stop us from doing a different type of transaction with the Network, if we chose to.”
McMahon added if WWE sells some rights to another streaming service, an announcement is expected in the first quarter of 2020.
This announcement of WWE possibly pairing up with another streaming partner comes after a drop in WWE Network subscriptions by 10% in the final quarter of 2019.
WWE’s stock has dropped dramatically over the past week as well. Initially, it dropped 27% after the dismissal of former co-presidents George Barrios and Michelle Wilson. It dropped another 15.5% after their reported fourth-quarter revenue fell short of estimates.
WWE did report a record-setting $960.4 million in revenue for 2019, a yearly increase of 3% from 2018, but this is a large part due to their television rights.
Since they’re performing on the lower end of their expected range due to decreases in other businesses, such as the network and live events, they’re looking at other strategic alternatives to boost the numbers.News Now - Sport News