WWE Exec Says Network’s Drag On Earnings Is Painful

WWE’s Chief Financial Officer George Barrios spoke on the WWE Network at the UBS 40th Annual Global Media and Communications Conference in New York City on Monday. Below is an excerpt from the transcript:

"We have talked about us going to market a network in one of three models. A dual-stream network, fully distributed, advertising and affiliate fee. A pay network, similar to an HBO model where the consumer would bear all the economic burden, no advertising primarily and then over-the-top. So the willingness to pay is both an indicator of the intensity to watch the show and that’s applicable to all three that willingness to pay also is applicable for the second and third one where it would be more of a direct-to-consumer economic model."

"As we looked at all three of them and this is the underpinning for all three models in the other data that I just mentioned. We just believe there is too much there potentially not to keep pushing at it. The drag on earnings is painful. It’s painful to investors. It’s painful to us but we just believe payoff could be too large so we are going to continue to push on that."