Update on the WWE Network

WWE remains unsure when a proposed WWE Network will launch and what form the Network will take.

During the annual shareholders meeting Friday, WWE executives fielded numerous questions related to the Network. Near the end of the Q&A, WWE CEO Vince McMahon was finally asked point-blank when the Network will be launching.

"That's a really good question," McMahon replied. McMahon then repeated WWE's stance that they want to make sure they "do it right" by exploring all of their options with a traditional cable TV model versus a hybrid model incorporating newer media.

Specifically related to when the decision will be made, McMahon said, "An announcement is forthcoming." After a pause, McMahon said, "In other words, I don't have that answer."

McMahon suggested earlier in the meeting that WWE could launch a cable-specific Network right now, but the volatility of the market and "times being different now" makes them more cautious to continue looking into other Network options.

"We're close to closing - if we wish - a linear network. We can do that," McMahon said. "We can also look at other opportunities at the same time that might be better for us, but, then again, it might not be."



One investor offered three proposed alternatives to a traditional cable TV network that included a suggestion for PPV event distribution through GFL.TV, a YouTube model alternative, and an a la carte offering online.

WWE CFO George Barrios replied that their research shows TV viewing behavior is still ahead of online/new-model consumption by a ratio of 5:1 hours. He said consumers may supplement their TV viewing on smart phones and other devices, but they still watch TV at a high rate, which is why they continue to pursue a traditional cable TV network model.

-- Another major aspect of the Network discussion centered on whether PPV events will be offered on the Network, as has been rumored over the past year. McMahon was vague in response, saying, the Network policy "may or may not include PPVs." He added, "It's certainly a factor we're considering."

The topic was also looked at from a different angle when a shareholder asked about offering current PPV events in a season pass form to curtail lower PPV buys for non-WrestleMania events. McMahon said, "That's a possibility," before noting PPVs could be part of the Network package. However, the key for WWE would be knowing when to pull the trigger on changing the PPV model and whether it's feasible to include PPVs on the Network.

-- Some of the key phrasing WWE used was their belief that they can drive the current WWE audience to a Network and that there is strong demand for more WWE content, which would be made available through a Network. "Give audience more of what they want," McMahon said. WWE did not provide supporting evidence for their belief that there is more demand for more content, though.

-- Asked of WWE Classics-on-Demand will go away when the Network launches, McMahon said it most likely will. Earlier in the meeting, WWE management stressed they are creating new shows based on their tape library.

-- Two shows WWE stressed for the Network were a show based on the Monday Night Wars and a WWE Countdown show, which WWE is currently pushing in new DVD releases.

source: pwtorch.com