"If we are not successful in entering into and maintaining these relationships, or if we encounter technological, licensing or other impediments to our streaming content, or if viewers migrate from our platforms to platforms we do not or cannot utilize, our ability to compete successfully could be adversely impacted." WWE wants people to watch the Network through home computers & tablets (PC/Macs), streaming devices (AppleTV & Roku), game consoles, smart televisions & internet connected Blu-ray player and mobile devices. However, they note that "agreements with consumer electronics providers are typically relatively short term in duration" and "our business could be adversely affected if...a number of partners do not continue to provide access to our service or are unwilling to do so on terms acceptable to us." This is an important point because WWE did quite well getting a wide variety of devices to support the Network up front, including AppleTV. Apple's aggressive revenue split (70/30% Apple) is exactly the sort of thing that drove Vince McMahon to butt heads with MVPDs (Cable & Satellite Distributors) over sharing PPV revenue in the past. In the future, orphaning devices or not keeping up with the times could easily be a reason that WWE Network starts losing subscribers.
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)
