The WWE Network has earned a subscription revenue of $19.4 million which is based on the first subscriber count. The company has cited that TV ratings, domestic attendance, and the Network are its new key factors. According to Vince McMahon, attendance and TV ratings are both up. He considers the total number of 700,000 Network subscribers as a competitive number that the company can build on. There are also plans to create compelling program and to devise new pricing schemes. A roll out will begin in the middle of August. Additionally, the company has entered into a new TV & Network agreement with the Canada-based Roger Communications.
The announcement of the new pricing scheme and the international rollout of its Network along with the imminent layoffs have somehow placed the entertainment company back on its tracks. On Friday, the stock gained up to $13.05 during the trading in late afternoon which at least compensated the 25% blow it had this year.
In the past, WWE would charge $9.99 every month and a six-month lock in period from subscribers for them to access the viewing of monthly special events. Now, WWE subscribers are given the option to pay the monthly fee of $19.00 and without any commitment.
Another paying option is amounted to $59.94 of upfront payment which is valid for six months. This is good for those who are not keen on paying their bill on a monthly basis.
"WWE execs did their homework and found people don't want to pay $120 a year but they don't mind paying $40 to $60 to watch a couple of big events," National Alliance analyst Robert Routh, said.
WWE confirmed new TV deals with a number of companies. These would include the pay-TV channel OSN in North Africa and Middle East, a three-year deal with Groupe AB of France, and a 10-year deal with Rogers Communications of Canada. The latter includes PPV distribution and the pay channel launching of the WWE Network.
Television remains to be the company's growth stronghold where it earned an aggregate revenue of more than $171 million during the past 12 months. This is considered as a great improvement of more than $19 million in every year.
The WWE's international rollout will cover more than 170 countries and territories. On August 12, the first round of rollout will hit the Nordics, Spain, Mexico, Singapore, New Zealand, Hong Kong, and Australia. WWE fans from these countries can access the Network by way of over-the-top streaming similar to their co-subscribers in the U.S.
The next set of rollouts is yet to be disclosed. With the new pricing features and other major plans ahead, WWE is keeping its fingers crossed to reach or probably even exceed the targeted number of one million subscribers before the end of the year.
