Soldato
- Joined
- 16 Jun 2007
- Posts
- 5,239
- Location
- London
Back in Sept, before rumours of the network going to being a Netflix style channel, their stock price was around 11$.
In Jan when they announced the network, esp at 10$ with ppv included and mania, the buzz was insane, this coupled with the fact that TV rights negotiatons were on the table lead to a surge in the price increasing. On a conference call to the holders, Wwe said they were projecting 1 million subs, and 2-2.5 by the end of the year along with 3-4 next year after going world wide. Now the raw viewership in the US is roughly 4 million a week, and the amount of us ppv buys for mania is usually 6-800000. So they thought instead of 70$,v the usual price for mania, that way more people would snap it up at 10$ (albeit with a 6 month contract). Their average audience is above 40 years old , most people who are used to buying on ppv rather than using a pc or smart TV / roku /apple TV, etc, so this would be highly misleading. And in all honesty, most people buying mania would buy this though, but the 80% of raw viewers that don't even purchase wm, even once a year, why would they commit essentially the same money (over 6 months) to the network? Yes it's a bargain, but they clearly don't feel the need to pay for Wrestling. Also if you look at the amount of homes in the US that have tvs and have Netflix, it's roughly 15 percent. So realistically, 15 percent of the 4 million viewers would purchase the network. That would roughly equate between 6 to 800000 people, which is what they hit, more near 6. Now stock holders knew that Wwe would post s lots due to start up costs, and the TV rights deal starting in Sept. But they wanted in quickly, as this style of broadcasting is very innovative and new.
To top this of, roughly currently Wwe is getting 100million$ for TV rights. Sports are the main money movers for rights fees due to advertisers, and nascar got about 600 million a year recently, and they aren't on 52 weeks a year and don't bring in the high amount of viewers and ratings, nor as consistently as the Wwe. Not to mention football (soccer) got a huge hire bump, even though they are really poor in viewers. Ufc got a huge deal too, and with fox sports emerging as a new sports channel similar to BT sports, they were looking to boost their viewers. BT and sky battled for Wwe rights here, and sky won, essentially doubling their old contract. They just got a huge contract in Thailand. With the Wwe being the last major sport in the US left without a long term deal, they told investors they would be getting near 280 million, more than covering the network and ppv revenue loss, and some! Nearly a 300% increace. With fix sports and spike looking for some major boosts to viewers and with the USA network wanting to keep raw, add that keeps them the number one rated network, they told holders it was going to be looking very good. Turns out advertisers think that Wrestling fans are cheap and arnt worth good advertising costs (true going via the network numbers) they had a moderate increace of 150%. Now realistically looking long term, that plus the world wide network next year, plus no start up costs, next year should be a really profitable year. Now the shares before mania jumped to a max of 32$, while hype was high, and those clever people at 11$ sold off. It dropped to above 20$ eventually, and then they announced the deal and our dropped back to Sept numbers.
In Jan when they announced the network, esp at 10$ with ppv included and mania, the buzz was insane, this coupled with the fact that TV rights negotiatons were on the table lead to a surge in the price increasing. On a conference call to the holders, Wwe said they were projecting 1 million subs, and 2-2.5 by the end of the year along with 3-4 next year after going world wide. Now the raw viewership in the US is roughly 4 million a week, and the amount of us ppv buys for mania is usually 6-800000. So they thought instead of 70$,v the usual price for mania, that way more people would snap it up at 10$ (albeit with a 6 month contract). Their average audience is above 40 years old , most people who are used to buying on ppv rather than using a pc or smart TV / roku /apple TV, etc, so this would be highly misleading. And in all honesty, most people buying mania would buy this though, but the 80% of raw viewers that don't even purchase wm, even once a year, why would they commit essentially the same money (over 6 months) to the network? Yes it's a bargain, but they clearly don't feel the need to pay for Wrestling. Also if you look at the amount of homes in the US that have tvs and have Netflix, it's roughly 15 percent. So realistically, 15 percent of the 4 million viewers would purchase the network. That would roughly equate between 6 to 800000 people, which is what they hit, more near 6. Now stock holders knew that Wwe would post s lots due to start up costs, and the TV rights deal starting in Sept. But they wanted in quickly, as this style of broadcasting is very innovative and new.
To top this of, roughly currently Wwe is getting 100million$ for TV rights. Sports are the main money movers for rights fees due to advertisers, and nascar got about 600 million a year recently, and they aren't on 52 weeks a year and don't bring in the high amount of viewers and ratings, nor as consistently as the Wwe. Not to mention football (soccer) got a huge hire bump, even though they are really poor in viewers. Ufc got a huge deal too, and with fox sports emerging as a new sports channel similar to BT sports, they were looking to boost their viewers. BT and sky battled for Wwe rights here, and sky won, essentially doubling their old contract. They just got a huge contract in Thailand. With the Wwe being the last major sport in the US left without a long term deal, they told investors they would be getting near 280 million, more than covering the network and ppv revenue loss, and some! Nearly a 300% increace. With fix sports and spike looking for some major boosts to viewers and with the USA network wanting to keep raw, add that keeps them the number one rated network, they told holders it was going to be looking very good. Turns out advertisers think that Wrestling fans are cheap and arnt worth good advertising costs (true going via the network numbers) they had a moderate increace of 150%. Now realistically looking long term, that plus the world wide network next year, plus no start up costs, next year should be a really profitable year. Now the shares before mania jumped to a max of 32$, while hype was high, and those clever people at 11$ sold off. It dropped to above 20$ eventually, and then they announced the deal and our dropped back to Sept numbers.
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) but here are afew pics, videos and thoughts from RAW at the o2.
