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"Well, we have a lot of options. We can continue on as we are now with an enhancement of a free tier and a more enhanced paid tier. But we have that as an option. We also have an option -- I mean, right now, there's no more better time to exercise the selling of our rights to all the majors. And quite frankly, all the majors are really clamoring for our content. So that could be a significant increase, obviously, in terms of revenue." - Vince McMahon
Yesterday, Vince McMahon made a major announcement that World Wrestling Entertainment was seeking to change their strategy for the company’s nearly six-year old WWE Network streaming service. Originally noted as the company evaluating potential “strategic alternatives” to the Network in the company’s 2020 Business Outlook, McMahon laid all the details out during a conference call discussing the company’s most recent earning release, revealing the company was talking to “all the majors” in the Over the Top streaming world about potentially moving WWE Network content there.
To say it was a shocking announcement within the company is an understatement. PWInsider.com has confirmed that news of the discussions, which we are told began last month, was not something that was widely known within WWE – not even within those who’s primary jobs are working on the WWE Network itself. We are also told that within the circle of those who were aware of the discussions, McMahon caught them by surprise by being so open that such things were even happening, and quite a few people wondered what all this meant for their future. But, he’s Vince McMahon and it’s not like he’s going to be reprimanded for anything (one person joked this is what happens when "George and Michelle are no longer around to reign Vince in.") – and just by saying the company is in talks, Vince McMahon is letting everyone in the streaming world know, hey, WWE is open for business. Just call me, maybe.
In speaking to several people in the company over the last 24 hours, PWInsider.com can confirm the following: As of yesterday, the idea of shutting down the WWE Network completely is not part of any current strategy for the company. Work continues on the long-planned multi-tiered version of the WWE Network, although if and when it launches remains to be seen, but the work is, as of this week, still ongoing.
Given Vince McMahon’s comments yesterday about the importance of live sports programming, we know he’s referring to pay-per-view events, especially since Raw and Smackdown are locked up in terms of television and streaming rights. So, we are looking at a world where many, if not all or WWE’s 12 major live broadcasts could be licensed out to another streaming service.
This could leave WWE in a world where those events come to the WWE Network at a later time (a month, 6 months, a year later, depending on the terms of the deal) for VOD viewing, just as Raw and Smackdown land on the Network a month after they have originally aired. It could also leave the WWE Network in a position where they continue to produce their own live events, primarily made up of WWE NXT Takeover and Worlds Collide style events, events produced specifically for Saudi Arabia or other international countries, like last year’s event in Australia or even live broadcasts from WWE house shows.
WWE could move Wrestlemania and Survivor Series to another service that is willing to pay them a mint for those marquee events and develop and present other content for WWE Network subscribers. The best of both worlds. After all, the NFL isn’t just on the NFL Network. Why couldn’t WWE have it both ways, especially if it brings millions of dollars in revenue to stockholders?
So, where could WWE events potentially be going? We know that Vince McMahon wouldn’t have said anything unless the company was deep in the woods of negotiations. So, let’s look at the potential suitors (throwing out ridiculous off the wall ideas like the NFL Network and MLB.TV) from least likely to most likely, and why:
FLOSLAM – Yeah, but no
FOX – They don’t have a current streaming service, not in the realm we are speaking of. They have Smackdown rights, but in terms of streaming, they are not in the game, especially after selling 99% of their assets that would fit such a platform off to Disney. Therefore, they are not in the hunt.
HBO MAX – Warner Media is ramping up their streaming service ($15 a month) for a big launch later this year, going as far as to reunite the cast of Friends for a reunion special and going after some major properties, including South Park. It’s going to be a major competitor to Netflix, but it’s least likely to be pursuing talks with WWE for two reasons. One, live sports programming is something that has been said will ultimately be part of the system, but it’s not planned for right out of the gate. Two, Warner just locked themselves into a deal with All Elite Wrestling, a pact that Kevin Reilly of the company personally oversaw. It’s not likely that Warner would jettison something they’ve worked hard to help get off the ground. So, HBO Max is not in the hunt.
CBS ALL ACCESS – CBS All Access ($5.99 a month, $9.99 commercial free) launched last year with some big properties as part of the launch, including Star Trek and Twilight Zone. It has not, however, featured any live programming and more so, the idea of WWE bloodying the nose of current broadcast partners FOX and NBC Universal by having weekly WWE programming building to PPV events on a CBS platform, well, that’s a bad storyline twist out of the worst episode of Raw. Not happening. So, CBS All Access is not in the hunt.
DISNEY+/ HULU/ESPN+ - Since all of these entities are owned and/or controlled by Disney, I am listing them together. ESPN+ could easily handle the live programming component as they currently have a huge money deal with UFC for all of UFC’s current PPVs, which left traditional satellite and cable PPV providers to migrate to the ESPN+ platform. To order a UFC PPV, you have to be a current ESPN+ subscriber ($49.99 annually) and then pay an additional cost ($64.99) to order a specific UFC PPV. While it is possible for the right licensing fee, WWE would be happy to be part of the Disney family, the idea of getting existing WWE fans who were already getting PPVs and everything else for $9.99 a month and shifting them over to paying for ESPN+ and THEN a WWE PPV price, well, that’s not happening without at least sizable amount of online complaining and loss of faith.
The idea of WWE on Disney+ ($9.99) seems ridiculous on paper, given that Disney has made it clear any racy content would never made their streaming service. That would eliminate a lot of older WWE library content and even some current day programming from WWE – The Elimination Chamber on Disney+ just isn’t going to happen! - , plus Disney+ isn’t doing live programming yet.
Hulu ($5.99 per month, $11.99 commercial free), however, is where Disney intends for racier, harder edged programming to land and features lots of PG-13 to R programming in every genre. While the Avengers would be on Disney+, there’s no way Marvel’s Jessica Jones could be on that platform, so if and when Disney regains the streaming rights for that, it’ll be on Hulu. WWE programming is available there and could fit on the service, but Hulu doesn’t have live TV programming of it’s own. It’s Hulu + Live TV ($61 a month) is more of a one-stop, get all your TV viewing here, not a service that is creating and distributing its own live programming. So, Disney could be in the hunt, but not likely without some major changes to its current setup.
NETFLIX – The grandfather of all streaming services, Netflix ($12.99 a month in HD) spends untold millions on original content, especially what it considers prestige TV series. It’s the home of everything from Stranger Things to The Umbrella Academy to GLOW and with the advent of Disney+ and the impending debut of HBO Max, it is at war to maintain its position as the top of the heap in the Over the Top World. WWE has been partnering with Netflix on projects of late, including a family film co-production between Netflix and WWE Studios The Main Event that will be released later this year (with big moments for Otis and Keith Lee, among others) and recently completed the first season of sitcom The Big Show Show. So, the two sides are well aware of what the other brings to the table. However, Netflix has never shown any interest in live sports programming and while WWE fans would certainly come over to the service, the idea of Netflix launching a live sports component just for WWE programming seems a little far-fetched. Could be in the hunt but not likely.
AMAZON – Now, if there’s one service that has certainly shown it is more than interested in providing live sports content for its subscribers, its Amazon Prime ($119 annual price) as they have live streamed NFL Football on Thursday nights and have experimented with lots of other live programs, including Will Ferrell and Molly Shannon, in character as local news anchors, broadcasting the Rose Bowl parade. There’s been a lot of talk that Amazon wants to make a massive play for the NFL when the rights are up and if they are looking to throw that money around, certainly Jeff Bezos could find some money freed up for WWE programming. Add in that we know Amazon is well aware of what sort of business WWE products do on their retail service and that Amazon Cloud Services handled the majority of all streaming services’ infrastructure, if anyone has the best idea of what WWE programming would be worth to their bottom line, it’s Amazon. Certainly could be in the hunt.
DAZN - Priced at $19.99 a month or $99 per year, DAZN has become the premier destination for combat sports (excluding UFC) for fight fans with a plethora of live boxing and MMA broadcasts, plus other sports featured in live and VOD form. The one combat sport the streaming service has zero footprint in is professional wrestling, which one would think has a fandom with at least some crossover with the other combat sports genres. The streamer has also worked with WWE in the past somewhat in terms of advertising on WWE programming to increase their awareness. This seems like a great fit for live WWE programming, but trying to get WWE fans already paying $9.99 a month to now pay an additional $19.99 a month for live events they used to have incorporated into the WWE Network is quite the mountain to climb. But, if WWE is paid a huge bounty for their live events, the problem of getting fans to cross the bridge falls on DAZN’s shoulders, not WWE. All that said, we are told DAZN is interested in pro wrestling content and thus, is likely in the hunt.
PEACOCK – What the hell is Peacock, you say? Well, for the uninitiated, it is the yet to launch streaming service from NBC Universal, WWE’s longest-running television partner. Planned to launch in July (although it will beta test for Xfinity cable subscribers in April), Peacock will feature several different subscription plans, including FREE (aka lots of commercials) to commercial free ($4.99 for Comcast cable subscribers, $9.99 everyone else) with older and new, original content, including a relaunch of Saved By The Bell and Punky Brewster, among other NBC legacy series. Peacock will also feature live sports programming from the 2020 Olympic Games, so there’s the live programming component that would be needed for WWE PPV events. Until this past October, WWE’s strongest ally within NBC Universal Bonnie Hammer was overseeing the day to day for Peacock, but has since moved on to an even stronger role, overseeing Universal TV and Universal Content Productions, basically the entire studio pipeline creating content for Peacock, USA Network, etc. However, we know from interviews Hammer did before shifting over that live sports programming was always going to be a big part of Peacock’s 15,000 hours of NBC Universal film and TV archives. Hammer always had a great relationship with WWE and knows of their importance to the success of the USA Network. It makes complete sense that she might nudge Peacock’s interest in WWE and that WWE would want to assist NBC Universal in helping to get their little streaming bird into the air. In asking around, PWInsider.com is told the two sides have been talking since last month about how WWE can fit into Peacock’s plans. So, Peacock is 100% in the hunt and I’d venture to say, the most likely right now. They are going to need customers to come in droves and what better way to get WWE fans to come than by offering them top tier WWE live events, especially if its a $4.99-$9.99 pricetag that potentially includes the current WWE Network?
Vince McMahon has promised an announcement on this strategy (if WWE moves forward with it, of course) will come by the end of the first quarter of 2020. Last year, the first quarter ended with 3/31, so by Wrestlemania 36, we should know what the next step is for WWE PPV programing, the WWE Network and perhaps, WWE’s future.
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