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March 31, 2015

WWE Stock Observer on WWE Network Giving Away Free Months, Will New Series Help Keep Subscribers?

The New York Post has an article on WWE stock dropping 14.7% on Monday, closing at $14.09, just one day after their biggest show of the year and hours after their big post-WrestleMania conference call with an updated WWE Network subscriber count of more than 1.3 million.

While WWE announced another free month of the Network for April, critics say WWE relying on free monthly promotions for new subscribers could make things worse for stocks. A long-time observer told The Post:

“They’re training fans to subscribe only to those events they really want to see. There’s no penalty for ending a subscription and then picking it up again.”

WWE is trying to combat subscriber churn by announcing the eight new specials and series, including partnerships with Seth Green and Jerry Springer, which some analysts believe could help the Network keep subscribers. Media veteran Eric Sherman told The Post:

“Partnering with outside creative talent will hopefully create some stickiness to the channel past their cornerstone events.”

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