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

Tim Cook Shows That Innovation Is Back For Apple
Tim Cook Shows That Innovation Is Back For Apple
With the first launch after Steve Jobs, Apple has entered a new age
 
 
China Disappointed With Apple Announcement
China Disappointed With Apple Announcement
China won’t have the iPhone 6, for now
 
 
New Privacy Challenges Coming To Apple
New Privacy Challenges Coming To Apple
The Apple Watch and Apple Pay turn Apple into a data company
 
 
iPhone 6 Sales Already Through The Roof
iPhone 6 Sales Already Through The Roof
A month long waiting list is already being seen
 
 
 

Latest from the Network

China Disappointed With Apple Announcement
Apple has faced plenty of problems when it comes to the Chinese market. Whether it has been allegations of spying or simply trying to find the right foothold with their expensive devices, it seems as though this is one...
Read more on Apple Balla
 
New Privacy Challenges Coming To Apple
Apple has handled smaller bits of data for years as one of the leading smart phone manufacturers. With the release of the Apple Pay service and the Apple Watch, they are going to have a great deal more data on their...
Read more on Apple Balla
 
iPhone 6 Sales Already Through The Roof
The iPhone 6 might be what it takes to ensure Apple’s long term success in a way that many were beginning to doubt. With a larger screen alone it could easily take customers away from companies like Samsung, but with an...
Read more on Apple Balla
 
Apple Starts Its New Path
Apple has always been a company that looks forward to the future. They saw a future involving personal computers back in 1984 and changed the way that wee see technology. They did it again with the iPhone. Now, with the...
Read more on Apple Balla
 
Three die in Pakistan blast
Islamabad, Sep 13 (IANS) At least three people were killed and 15 injured Saturday when a bomb went off in Pakistan's Quetta city. According to officials, the bomb exploded near a paramilitary Frontier Corps (FC)...
Read more on Politics Balla
 
War of words over fight against Islamic State
Washington, Sep 13 (IANS) Call it war, fight, battle or what you may -- the Barack Obama administration seems to be warring within over what to call the impending military action against the Sunni terrorist group...
Read more on Politics Balla
 
French Ligue 1 standings
Paris, Sep 13 (IANS) Following are the standings of French first division soccer Ligue 1 after a match Friday (tabulated under matches played, won, drawn, lost, goals for, against and points), according to Xinhua....
Read more on Sport Balla
 
Benfica defeats Vitoria Setubal in Portuguese league
Lisbon, Sep 13 (IANS) Benfica hammered Vitoria Setubal 5-0 in the fourth round of the Portuguese league at the Bonfim stadium in Setubal. The win Friday included a hat-trick by Anderson Talisca, reported Xinhua....
Read more on Sport Balla
 
Winter wonderland wedding for Eddie Redmayne
London, Sep 13 (IANS) Actor Eddie Redmayne and his fiancée Hannah Bagshawe are planning a winter wedding. Actor Redmayne will marry Bagshawe, his girlfriend of three years, in December. And his bride is determined...
Read more on Celebrity Balla
 
Cara Delevingne penning autobiography?
London, Sep 13 (IANS) British Supermodel Cara Delevingne has decided to pen an autobiography, detailing her younger years rather than her rise to fame. She carries a dictaphone and a notepad with her wherever she goes...
Read more on Celebrity Balla