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The first question asked about them feeling that the Network would increase TV viewership. Why do they think it will not cannibalize viewers? Vince said that Raw and Smackdown will be "live". That is the value that NBCU sees in their programming. He said that there are no repeats of the shows on USA because the network wants people to view in live. He said that USA believes the WWE Network will increase viewership as well.
They were asked for an update on the TV deals. They said they are in discussions and will have something to announce on it by the end of April/beginning of May. He was asked if MLB was a partner in the Network and George said it's a service, they have no equity.
They were asked if they considered bundling the TV rights deal with the WWE Network, such as giving a discount on the Network to subscribers of wherever their TV ends up. George said that they considered it but decided to go with it as they have announced it. So no they will not bundle.
Have they considered giving people that buy tickets to events a free week or two to the Network? Will subscribers get a discount on WWE Shop stuff? George didn't want to give away all of their secrets but they have a lot of things planned, including one week free (Vince said that week would not be during a week of a PPV).
Do they see bigger growth potential in the US or worldwide (since now they don't need a TV deal in countries they aren't in now). George said probably world wide in 5-10 years but he is bullish on the US too.
What percentage, in their research, showed an affinity to actually buy this? George said that was the 2 to 3 million they mentioned.
They were asked how they have felt the response has been. Enormous.
They were asked why finally now? George said part of the issue was with PPV deals they had, but they wanted to get it done in time for the build up to WrestleMania so now is the time. Vince said that he hoped that the PPV providers will continue to deliver PPVs as they have. DirecTV was mentioned as considering not carrying WWE PPVs. They were asked about their other partners and how they feel about losing the PPVs. George didn't want to get into that.
George said that the programming/delivery cost of the Network will be about 10%, or a dollar per if they hit their two to three million people.
They were asked again about cannibalization. Why are they comfortable with losing the PPV money that will be eaten up by people that move to the Network. In theory can people buy the first six months and then leave? Yes in theory they could but George has confidence in keeping them from leaving after six months. He has used the Network and he says that he feels once people have access they won't be backing out.
They were asked about any revenue sharing with their Roku, Apple, etc. partners. He said that they will go within the norms of whatever the carrier uses. He was asked how many subscriptions he expected to come through WWE.com. George just said he expects 1 million subscribers by the end of the year.
They were expected about the expenses for content. George said it will be a little higher than it has been. He estimated an incremental 20 million in op ex.
They were asked if they will have a yearly discounted price. George said that there will be a pre-paid annual and you can also give it as a gift.
Are they considering adding things like chats with stars for an extra price? George said that the second screen app will do that and so much more. That all comes with the $9.99.
They were asked how they came to the price and how elastic the pricing is. George said they wanted to deliver value to their fans. They did research and found that this price was the best for the people and getting subscribers.
They were asked if it will make fans think house show prices or PPVs delivered traditionally should be priced less. George said no.
At that point they said they had no further questions and ended the call, even though Mike Johnson was in the queue. That answers the question of whether only people from financial institutions can ask questions on one of these calls.
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