For $9.99 per month (and a six-month commitment) subscribers will have access to more than 130,000 hours of WWE programming, matches that date back to the 1950s. There are also original programming and a second screen experience on the WWE app that allows viewers to interact with one another and watch live content during commercials.
There is like 1,500 hours of programming on the WWE Network. The 130,000 hour number is the total amount in their library. Big difference!
VERDICT: Misleading. The library size does not equal the video-on-demand content.
CLAIM: Dish Network Will Not Be Carrying WrestleMania
Naturally some of WWEs television partners felt sucker punched by the over-the-top strategy. In advance of the launch DISH Network announced that it was dropping all WWEs pay-per-viewsincluding WrestleMania XXX on Apr. 6. I assume this article was completed prior to learning that Dish apparently has relented and will carry WM.
VERDICT: Circumstances recently changed.
CLAIM: WWF Bought WCW For $2.5 Million
In the end it was Ted Turner. In 2001 he sold the name rights of WCW to WWF for $2.5 million, plus the entire video library of matches. (Today you can watch them all on the WWE Network.)
As Voices of Wrestling noted: McMahon bought the WCW trademarks for $2.5 million and later secured the archived tape library for $1.7 million, bringing the total to $4.2 million.
VERDICT: Closer to $4.2M though the article talks about name rights. Either way, it was a steal.
CLAIM: 250,000 People Signed Up On The First Day
While the WWE has yet to release how many subscribers it has to date, two longtime wrestling observers estimated that at least 250,000 signed up for the service on the first day, which would put the company well on its way to the million it needs to break even.
VERDICT: 250,000 was my low estimate. However, I believe between 5%-15% were either kicked out (international users that were caught) or cancelled after the free trial.
CLAIM: An Analyst Believed The WWE Network Could Hit 6 To 8 Million Subscribers
One analyst recently predicted the WWE could even exceed its own goals and acquire 6 million to 8 million subscribers.
Wow. The guy who said that was Robert Routh in this CNN article. It surprises me because Routh is a smart guy and has been covering WWE Stock for a very long time. That's a wildly high estimate for a product which can only get 4 million viewers (3 million households) on a regular basis to watch their flagship show. It's not 1999 anymore.
VERDICT: Thats what he said.
CLAIM: Others Believe WWE Network Would Be Lucky To Come Close To A Million Subscribers
Not everyone is sanguine about those prospects, however. Intrepid Capital Management was WWEs largest outside shareholder until January 2014, when it sold its 10% stake in the public float at a 100% profit. Intrepid portfolio manager Jayme Wiggins believes the WWE Network will be a tougher sell. The network is a slam dunk for a die-hard fan, which Wiggins estimates to be a core of 700,000, but I dont think its going to be easy for them to get another 500,000.
I'm a professional wrestling analyst, an improviser and an avid NES gamer. I live in Saint Paul, Minnesota and I'm working on my first book (#wrestlenomics). You can contact me at chris.harrington@gmail.com or on twitter (@mookieghana)
