Friday, January 10, 2014

More on the WWE Network

- When WWE made the announcement of the WWE Network, it noted that while the PPV events would air on their network, they would still make the event available through traditional PPV. According to F4wonline.com, DirecTV released a statement today to the Los Angeles Times, stating the following…

"Clearly, we need to quickly re-evaluate the economics and viability of their business with us, as it now appears the WWE feels they do not need their PPV distributors."

Direct TV also claims WWE has been in a steady decline on PPV and that the network, "will only accelerate this trend." The contracts that inDemand and DirecTV have with wrestling companies, boxing companies and UFC state that PPVs can't be put on the Internet for a lower price than is being charged by the cable companies.

Vince McMahon was recently interviewed by the LA Times about the launch of the WWE Network. When asked about the decision not to launch as a traditional cable network, McMahon explained that if they would have, they would have only been paid 20 cents a subscriber, and that the deal would have been too restrictive. When asked about PPV distributors possibly dropping the WWE product, McMahon stated the following…

"I think it'd be foolish for them not to want to carry the pay-per-view anymore. It's found money for them."
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Opinionated View- I stand by my feeling that WWE only went this route after falling to a TV network off the ground.  It will be interesting to see if other cable/satellite  follow Direct and if the network fails can WWE go back? 

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