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

A8X Chip of the iPad Air 2 Reportedly Contain Triple Cores
A8X Chip of the iPad Air 2 Reportedly Contains Triple Cores
Along with the triple-core A8X chip, the iPad Air 2 is said to feature the 2GB RAM
 
 
Apple And IBM Unveiling Start Of Their Partnership
Apple And IBM Unveiling Start Of Their Partnership
Next month brings the first part of a fruitful relationship
 
 
Apple Wants 64-bit Apps By February
Apple Wants 64-bit Apps By February
The performance boost will help keep them on top
 
 
Chinese Hackers Claim To Have Hacked iCloud
Chinese Hackers Claim To Have Hacked iCloud
More controversy is surrounding Apple’s cloud platform
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla