WWE Network Numbers

[The Ultimate Nullifier]

WWE released their third quarter results for 2014 today. The company announced that the total number of subscribers for the WWE Network as of September 30th is 731,000.
"WWE Network added 31,000 subscribers in the quarter, representing a 4% increase from June 30, and reached 731,000 subscribers at quarter-end," the report read. "Subscriber growth reflected the acquisition of 286,000 subscribers, which was 71% above the gross subscriber additions in the period between April 7 (the day after WrestleMania) and June 30 (WWE Network added 182,000 gross subscribers during the April 1- April 6 period, which included WrestleMania). Through September 30, WWE Network had attracted approximately 971,000 unique subscribers with 75% of these subscribers active as of that date."

The company also announced that the Network will be available in the U.K. in November, and that they are removing the six month commitment.

"To capitalize on the substantial opportunity created by WWE Network, it's time to remove all the barriers to those that want WWE," Vince McMahon said. "We are excited to introduce a new simplified price plan at $9.99 per month, and like Netflix with no commitment/cancel anytime. This reflects our belief in the broad appeal of WWE Network content. Additionally, we continue to develop the international platform for WWE Network and plan to make the network available in the U.K. on an OTT basis in November. WWE Network continues to be the single greatest opportunity to transform WWE's business model and we remain optimistic about our potential to drive long-term growth."

As noted, since WWE announced 667,287 subscribers last April, the Network has become available in over 170 countries and territories. As of the end of the third quarter, this led to the company acquiring around 30,000 international subscribers.

[The Ultimate Nullifier]

variety.com/2014/digital/news/wwe-network-grows-to-731000-subscribers-drops-contract-requirement-1201343211/

WWE Network Grows to 731,000 Subscribers, Drops Contract Requirement

WWE is dropping the six month contact requirement to sign up for its WWE Network as part of an effort to attract more subscribers, the company said Thursday.

The streaming service added 31,000 paying subscribers during the third quarter, with 28,000 of those signing up overseas. Another 3,000 were in the U.S. WWE has said it aims for 1 million subscribers by the end of the year.

The network became available in more than 170 countries on Aug. 12, when it also introduced a $12.99 plan which had 23,000 subs signing up with the ability to cancel anytime.

The network will become available in the U.K., one of WWE’s top markets, in November.

To get more people to sample the network, new subscribers who sign up will receive the network for free starting Nov. 1, giving them access to upcoming pay-per-view “Survivor Series,” on Nov. 23

The price to subscribe will remain at $9.99 per month, but viewers will now be able to cancel the service at any time.

WWE Network, a streaming service available on mobile devices, smart TVs, set top boxes and video game consoles, launched in February and offers WWE’s PPVs, as well as original programming and access to it vast library of shows. It has started to add a limited number of advertisers to the service on Oct. 13, starting with Pepsi, Mattel, K-Mart, Take-Two Interactive, and Pure Talk USA as the network’s initial sponsors.

The launch of the network has taken an expected hit on PPV buys, which were down 56% during the third quarter, with three events earning $3.7 million from 294,000 purchases through cable and satellite providers.

Close to 90% of its subscribers access WWE Network at least once per week and 99% do so at least once per month, WWE said.

“We are excited to offer new WWE Network subscribers the month of November free to experience all of our live programming, explore thousands of hours of video-on-demand content, and watch ‘Survivor Series,’ one of our most popular events,” said Michelle Wilson, WWE chief revenue and marketing officer. “Our research combined with best practices in digital subscription businesses affirms our belief that a simple, single price plan will help us continue to grow WWE Network’s subscriber base.”

WWE reported third quarter results on Thursday, with the company posting a new loss of $5.9 million, compared to a $2.4 million profit in the same period a year ago. Revenue came in 6% higher to $120.2 million.

The WWE Network boosted network segment revenue by 68% from last year’s quarter and 26% year-to-date.

“During the quarter, we delivered stronger financial performance than anticipated and surpassed our guidance while making significant progress on the execution of our WWE Network strategy,” said Vince McMahon, chairman and CEO. “To capitalize on the substantial opportunity created by WWE Network, its time to remove all the barriers to those that want WWE. We are excited to introduce a new simplified price plan at $9.99 per month, and like Netflix with no commitment to cancel anytime. This reflects our belief in the broad appeal of WWE Network content. Additionally, we continue to develop the international platform for WWE Network and plan to make the network available in the U.K. on an OTT basis in November. WWE Network continues to be the single greatest opportunity to transform WWEs business model and we remain optimistic about our potential to drive long-term growth.”

Ratings for “Raw” and “SmackDown” rose 2% and 3%, respectively, during the quarter that ended Sept. 30. Seven new distribution deals for the company’s shows are expected to increase from approximately $130 million in 2014 to around $235 million in 2018.

Its film arm, WWE Studios, saw revenue increase to $1.9 million from $1.8 million mostly from its 2013 releases. The company’s more focused film strategy helped narrow losses to $400,000 during the quarter, compared to $7.4 million last year.

Meanwhile, the company’s videogames boosted licensing revenue to $10 million from $5.7 million during the quarter, helping the consumer products arm increase sales to $18.5 million from $12.6 million.

[The Ultimate Nullifier]

WWE revealed today that the WWE Network currently garners 731,000 active subscribers, adding an additional 33,000 subscribers from the last reported figure back in July. This figure is as of 9/30 and doesn't count any new subscriptions in October.

You can check out the official release from WWE below on the updated figures and added expansions planned for the WWE Network later this year below.

WWE Network Update

• Network segment revenues increased 68% from the prior year quarter and 26% on a year-to-date basis, reflecting the launch of WWE Network. Viewership of WWE Network's most compelling content increased as evidenced by the Night of Champions in September. Domestic transactions related to that event, as measured by a combination of network subscribers and pay-per-view buys, were nearly 9 times the event's 85,000 domestic pay per-view buys in the prior year quarter.

• WWE Network added 31,000 subscribers in the quarter, representing a 4% increase from June 30, and reached 731,000 subscribers at quarter-end. Subscriber growth reflected the acquisition of 286,000 subscribers, which was 71% above the gross subscriber additions in the period between April 7 (the day after WrestleMania) and June 30 (WWE Network added 182,000 gross subscribers during the April 1- April 6 period, which included WrestleMania). Through September 30, WWE Network had attracted approximately 971,000 unique subscribers with 75% of these subscribers active as of that date.

• The U.S. version of WWE Network was made available in more than 170 countries and territories beginning August 12. Between that date and September 30, WWE Network acquired approximately 30,000 international subscribers, representing 10% of gross additions. Additionally, on August 12, the Company introduced a $12.99 (cancel at any time) plan, which reached 23,000 subscribers at quarter end.

• Viewer data continues to indicate that, on average, close to 90% of subscribers access WWE Network at least once per week and 99% access WWE Network at least once per month. Driving that engagement is WWE Network's compelling live and new original content. Notably, the Company's SummerSlam event, which aired live on WWE Network, ranked 1st on Nielsen's Twitter TV Ratings, achieving the largest social media presence of any series
or special during the week of August 11, beating every program in this Nielsen category on U.S. cable and broadcast networks.

Future Plans

• New Simplified Price Plan: Beginning November 1, the Company will introduce a new simplified price plan at $9.99 per month with no commitment (cancel at any time). Current subscribers will benefit from this new simplified plan as they are migrated to this new plan beginning in December. The new pricing structure reflects management's belief in the broad appeal of WWE Network content and is comparable to that of other subscription-based content platforms including Netflix and Hulu Plus. Additionally, all new subscribers who register for the network in November will receive the month of November for free, including the opportunity to watch Survivor Series live on Sunday, November 23rd.

• WWE Network to be available in the U.K.: The Company continues to develop the international platform for WWE Network and plans to make the U.S. version of WWE Network available in the U.K. on an over-the-top basis in November.

• New Content / Product Features: New content recently added to the network includes WWE Rivalries. The original series, which provides a documentary-style look at some of the greatest moments in WWE history, debuted on October 27. In addition to providing new live and original content, the network has increased access to the Company's comprehensive video-on-demand library to more than 2,500 hours from more than 1,500 hours at
launch. Also enhancing subscribers' viewing experience, the Company plans to roll out new "resume play" and "watch list" features across WWE Network media platforms by the end of December.

• Limited advertising: WWE Network began including a limited amount of advertising on October 13 with Pepsi, Mattel, K-Mart, Take-Two Interactive, and Pure Talk USA as the network's initial sponsors. The Company's advertising strategy anticipates no commercial breaks during scheduled programming, limited advertising between shows, and occasional advertising before the network's video-on-demand content.