The WWE Network will have an online monthly subscription service.
According to Deadline, the company (WWE) wanted to create network but it didn’t spark the interest of cable or satellite distributors. The monthly subscription service will cost $9.99 a month with a six-month commitment. It is powered by MLB Advanced Media and will be available on computers, Apple and Android devices, Amazon’s Kindle Fire, XBOX 360, PlayStation 3 and 4, and Roku (XBOX One) as well as some Smart TVs shortly after summer.
Those who purchase the subscription service will get 12 monthly pay-per-view specials, 1500 hours of shows from the WWE library and some new programs.
CEO Vince McHahon said the network,”Allows us to transform and reimagine how we deliver our premium live content and 24/7 programming directly to our fans around the world. WWE Network will provide transformative growth for our company and unprecedented value for our fans.”
WWE foresees 3 million subscribers “based on extensive consumer research and the value proposition for a network that reflects the inclusion of our pay-per-view events, including WrestleMania.”
If WWE’s estimate is correct, they are looking at revenue of $350 million and “incremental OIBDA [cash flow] between $50 million and $150 million at a ‘steady state.'” However, benchmark analyst Mike Hickey believes the low cost “will cut into WWE’s revenue in the short term.” Currently WWE pay-per-view costs $44.95. They could make it up as subscriptions increase over time.
Other programs coming to the network include The Monday Night War, WrestleMania Rewind, WWE Countdown, WWE Legends House, WWE NXT, and WWE Superstars.