WWE Just Gained Full Control Over Its Broadcast Contract Negotiations

Jan 9 2014, 8:22am CST | by

WWE Just Gained Full Control Over Its Broadcast Contract Negotiations

According to expert Chris Bevilacqua on an October episode of Forbes SportsMoney on the YES Network, WWE is the most dominant sports entity in the Unites States, second only to the NFL. And with total yearly revenue topping out at $480 million in 2012, there’s no denying the company’s a monster. Currently, the sports entertainment giant is in negotiation with various networks to host flagship programs RAW and Smackdown (among others) following the conclusion of the company’s current contract with NBC|Universal. But a recent announcement made at this year’s Consumer Electronics Show (CES) could give Vince McMahon all the leverage he needs to control the conversation behind closed doors.

To a packed crowd at last night’s presentation, various members of the WWE roster unveiled the soon to be launched, WWE Network, which will be run in partnership with MLB Advanced Media. The network will be new-media based and grant users access to both on-demand and live content (including the company’s monthly pay-per-views) for just $9.99 per month with a 6-month commitment. All of which will be accessible through devices including Roku, Apple TV, Playstation and X-Box, in addition to PCs and smart phones. For any audience members who regularly purchase the monthly pay-per-view events that can run upwards of $50 an order, the yearly savings are a no-brainer.

But what does this mean for the current negotiations? It means WWE now holds all the cards. Recent broadcasts of Monday Night Raw have averaged 4 million viewers across its three hour programming block, which also happens to be the exact amount of subscribers required to match WWE’s 2012 revenue. It’s the kind of data the company needs to put itself in a perfect position to name its own price

Live programming has become a hot commodity for new-media companies, with everyone from Netflix to Microsoft trying to get in on the action. Seeing this push for demand, many major sports leagues have gone so far as to launch their own internet services to broadcast games directly to fans for a small fee. But, except for the NFL, none of them hold the size audience WWE does. Recent data points to there being at least one WWE fan within 50 million television households in the U.S. alone.

WWE knows it can hold its own, and this is their way of proving it. It’s no accident the company waited until the beginning of 2014 to make this announcement. Right now, nearly every major network wants WWE under its banner (its 18-49 ratings are just too strong to ignore), but it’s not enough to just have strong ratings. WWE wants to prove it can support itself independently. To McMahon and his team, this is all one giant game of chess, and they just called “check.”

Source: Forbes Apple

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

2016 NASA asteroid mission awaits your messages
Washington, Sep 3 (IANS) NASA has invited the public to submit short messages and images on social media that could be placed in a time capsule aboard a spacecraft to be launched in 2016 for an asteroid study.
 
 
Indian-born scientist wins prestigious US award
Washington, Sep 3 (IANS) India-born scientist Dr Thomas John Colacot has won the American Chemical Society's ACS Award in Industrial Chemistry, one of the top honours in the field.
 
 
Cannabis could be as addictive as drugs
New York, Sep 2 (IANS) As more people are able to obtain and consume cannabis legally for medical and, in some states in the US, recreational use, people are less likely to perceive it as addictive or harmful. But a research study proves otherwise.
 
 
New sensor to detect tiny, individual nano-particles
Washington, Sep 2 (IANS) In a major breakthrough, a team of researchers has developed a new sensor that can detect and count nano-particles, at sizes as small as ten nano-metres, one at a time.
 
 
 

Latest from the Network

Watch your diet to reduce diabetes risk
London, Sep 3 (IANS) What you eat and drink, and not just the number of calories, is a significant factor in diabetes risk, a study showed. Losing weight may be good but not enough to prevent Type 2 diabetes as...
Read more on Celebrity Balla
 
35 militants killed in Afghanistan
Kabul, Sep 3 (IANS) At least 35 Taliban militants have been killed in fresh military operations across Afghanistan, the interior ministry said Wednesday. The Afghan National Security Forces (ANSF) carried out...
Read more on Politics Balla
 
Vince Vaughn for The Politician?
Vince Vaughn is set to star in 'The Politician'. The 'Wedding Crashers' star is attached to take on the lead role in the upcoming Columbia comedy about a scandal-hit politician, according to The Hollywood Reporter. The...
Read more on Movie Balla
 
910 militants, 82 soldiers killed in North Waziristan
Islamabad, Sep 3 (IANS) At least 910 militants and 82 Pakistani soldiers have been killed in operation Zarb-i-Azb in North Waziristan, the military said Wednesday. The statement issued by the Inter-Services Public...
Read more on Politics Balla
 
'Headscarf instils positive body image in British Muslim women'
London, Sep 3 (IANS) British Muslim women who wear a hijab (headscarf) generally have a more positive body image, are less reliant on media messages about beauty ideals and place less importance on appearance than...
Read more on Celebrity Balla
 
Console games new threat to global climate: Study
New York, Sep 3 (IANS) Console games downloaded over broadband internet are causing more greenhouse gas emissions than Blu-ray discs delivered via retail stores, new research reveals. It is not always true that...
Read more on Celebrity Balla
 
Human greed driving species towards extinction: Study
Washington, Sep 3 (IANS) In a disturbing trend, scientists have reported that species are becoming extinct as much as 1,000 times more frequently - 10 times worse than the previous estimates - owing to human population...
Read more on Politics Balla
 
Kelly Brook's traumatic childhood
Kelly Brook has opened up about ''violent and horrific'' memories from her childhood. The 35-year-old actress has revealed that although she enjoyed some aspects of growing up on a council estate in Kent, South East...
Read more on Celebrity Balla
 
Emmy Rossum not 'easy'
Emmy Rossum insists she's not ''easy'' like her 'Shameless' character. The 27-year-old actress stars as Fiona Gallagher in the US remake of the hit series and she's revealed that although she's had sex on a first date,...
Read more on Celebrity Balla
 
2016 NASA asteroid mission awaits your messages
Washington, Sep 3 (IANS) NASA has invited the public to submit short messages and images on social media that could be placed in a time capsule aboard a spacecraft to be launched in 2016 for an asteroid study. Called...
Read more on Apple Balla