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Network numbers

In another topic that hasn't been discussed much this morning, it's now come out of the Network conference call that break-even has moved from 500K to somewhere in the 1.5-1.7 million range.  So this thing has suddenly become a lot more expensive, probably with the added costs of worldwide expansion and shitty new Jerry Springer shows.  And that's 1.7M paying subs on an average daily basis, not 1.3M the day after Wrestlemania with a bunch of free month customers in there.  So no, they are not anywhere near making money on this thing yet.  

On a somewhat related note, I upgraded my internet connection from 10 megabit to 25 megabit, and THAT has finally seemed to overpower whatever issues the Network has been having, because the RAW I reviewed last night worked flawlessly for once on Xbone.  

Comments

  1. I avg 12 mb and mania was a mess, particularly the last 40 mins. Yet Netflix has zero issues.

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  2. Battle Kat LitterApril 2, 2015 at 8:37 AM

    All these new shows they're producing for the network (Springer, cartoons, Diva Search etc) are surely going to cost money, but not attract any new subscribers? Surely? Or are there people out there who were refusing to buy the network but suddenly change their minds because of crap like this?

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  3. I'll come back when I feel the PPV's are must-buy. I love the old stuff, but there's not enough of it right now and I can't justify the $10 per month when I don't exactly sit around just watching wrestling all day and night.

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  4. It's because they believe people want original #content and will Appeal to the Fanbase.

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  5. It came down to the point where I was only watching nxt on the network, so I switched to hulu and canceled the network. Now I'm watching iZombie and Last Man on Earth, both of which I dig and I still get nxt. If they build a compelling main event for a ppv, I'll sign up for a month but that's probably it for me.

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  6. I thought the costs would go DOWN after a while. I can see a price increase in the near future, and when that happens, it'll be a downward spiral.

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  7. I do the same thing. The Network is such a waste of money for me since the only things I watch are NXT and Mania.

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  8. kbwrestlingreviewsApril 2, 2015 at 9:00 AM

    I have 20 megabits and I've only had a few issues ever with the Network freezing on my PC. Maybe I'm just lucky.

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  9. On the investor call, Barios and MacMahon stated they believe the new shows will attract new subscribers.

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  10. I have to wonder how that's going to work. You're pulling from a finite pool, and unless the show is really compelling and ONLY shown on the Network, why would that attract new viewers?

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  11. I really don't understand their delusions with the Network. In Q1, they averaged 918K paid subscribers and that's after they more or less rolled out across the world. Since they were averaging about 750K paid before they expanded beyond the US, I'm not seeing how they think they're suddenly going to hit 3 or 4 million paid subs. They're not showing any growth and attrition is going to set in.

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  12. bah. I can't get even get consistently over 5m during peak usage times because I live out in the country and TDS sucks. But, WM was mostly ok for me, thankfully.

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  13. Their last free month gained them around 200,000 new subscribers, with about 150,000 staying the next month. Apparently they think they can keep doing that every few months and continue to grow.

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  14. I don't know how anyone would want to go out of their way to suscribe for a Jerry Springer show or a lame cartoon. NxT is the real selling point to the fanbase and it's available on other plateforms ...

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  15. They seemed to be on track to profitability soon, but for whatever reason have become so optimistic about it that they've budgeted $120 million for it this year, which is what's caused the break-even total to rise so drastically. The ridiculous thing is the bulk of that is for new shows that wrestling fans wouldn't be very interested in. They're really trying to broaden and go after the Netflix crowd which seems crazy so early in the game.

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  16. Doctor FunkopolisApril 2, 2015 at 9:16 AM

    Yeah, but they have to say that.

    At a certain point of investment, you have to to go ahead and go through with the project.

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  17. They're supposedly adding 1000 hours of vintage content by the end of the year.

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  18. Not really. They were at about 750K heading into their first free month and two free months later they're averaging 918K paid. Even if 150K stuck around after the free month, an equal number must have left.

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  19. They have to say it, but it's still crazy. Unless they have some compelling research to show them people are waiting for new shows before signing up.

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  20. They should be looking more at how MLB runs their service, but they've got tons more content and a lot more hardcore fans willing to plunk down the money for it.

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  21. The problem is the model isn't built on keeping subs long term, but getting people to sign on and sometimes hope they forget about the service. There's no sustainability, unless they're hoping to catch the next upswing, and by then, they would have put in a lot of money for this.

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  22. That 918K number WWE released has everyone puzzled, because it doesn't match the other numbers. They said their net gain from the last free month was something like 146,000. But the average included WrestleMania, which is over 1.3 million. So to have that average at some point they had to have seen a huge drop. Their math doesn't add up.

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  23. It's hard to quantify, because they don't have a set in stone process by which subs can be derived. I'd just as well accept "let's pull this number out of our rectums" based on a 3am picture of the Network in January.

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  24. Two original show ideas for them that would be FREE and get as many viewers as they will with South Park goes to Stanford: A 'My Favorite Matches' kind of show where they interview a wrestler about one of his favorite old school matches and show it. Then about one of the wrestlers favorite matches they were in and show it. And a 'Best of ____' show where the blank would be a city or arena. Best of Atlanta. Best of the Rosemont. Etc.

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  25. Yup...I have a bajillion hours of converted VHS' and other "acquired" content so I don't need the archives to get my wrestling fix. I'll sign up when they make the modern product worth watching.

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  26. 914,000 paying customers world wide...covers just over half that!!! Yikes.

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  27. Yeah the drastic change with the break even point makes me wonder if they're doing some creative accounting and somehow fudging the numbers for tax purposes.

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  28. And this is when Vince's obsession with becoming an entertainment mogul rather than a wrestling mogul really hurts the company.

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  29. They clearly seem to be trying to game investors, which has backfired every time. This latest was no exception, as the stock once again took a tumble.

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  30. I'm a little confused. I thought the magic number they've been throwing around forever was 1 million. Where did half a mill come from?

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  31. One mil subs, $500k for network maintenance costs, which to me always sounded low.

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  32. I ask this question again: where is the data that shows that people were clamoring for this garbage pile of new programming? They're sinking money into these shows in the HOPES that someone still wants to watch Jerry Springer in 2015?

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  33. Jerry Springer was relevant 20 years ago. Nice one, Vince.

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  34. Investors are generally sheep, but will play along if they know you're making SOME kind of money. When it comes out that you're not, look out.

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  35. The Springer show idea was probably their worst one. I can't fathom anyone giving a shit about the guy or a new show in 2015.

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  36. Doctor FunkopolisApril 2, 2015 at 9:54 AM

    They're dumb. Thus the only way to put it. Vince is the kind of guy that would rig his own market research.

    "What would you prefer : Pictures of blank canvas or a Springer like program?"

    "Uhh...Springer?"

    "Results are in, boys!"

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  37. Springer probably chatted up Vince the last time he guest hosted RAW and made him laugh, and so "Let's work out something for you to have a Network show, pal!"

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  38. I like to read Xbone as X-Bone. Makes it feel classier.

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  39. Jerry Springer's family?

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  40. Seriously, what is this 1997. They should also give Tom Greene a show while they're at it

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  41. "I GOT IT! LET'S HAVE BEAVIS AND BUTTHEAD RATE OUR MATCHES! GIVE 'EM AN HOUR SLOT!"

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  42. Vince is just now to 1997 Springer episodes that he has seen. He thinks the guy is a superstar.

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  43. OK now you've gone too far. Beavis and Butthead would be totally acceptable. If you're going to bring back something from the late 90s, that would be it. In fact, when MTV brought them back in 2011 for a new season, they played the episodes and then never mentioned it again. I haven't seem them since they aired live.
    Having them do commentary on matches would be fantastic.

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  44. I always pronounced it as such, especially because they were boning customers the first year with the mandatory $100 Kinect paperweight

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  45. "Hey Butthead heh heh...what's up with Roman Reigns's hair? Is he a chick or a dude heh heh?"

    "Uh huh huh....uhhhh....he's probably going through a phase, uh huh huh. He's finding himself."

    "Heh heh...every time Lana comes out, I find myself too, heh heh."

    "Uh huh huh....dumbass."

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  46. TOO MUCH LOGIC, PAL!

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  47. I always liked the "Don't Worry, Be Happy" video where they're beating the crap out of each other. Can't seem to find it, though.

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  48. I have Uverse, which also sucks (at least in my area), and can't even get through five minutes of the Mania pre-show right now. Oh well; I'm on my umpteenth free trial, anyways.

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  49. Mania! That's another thing they should add to the Network (I speak of the Todd Pettingzoo-hosted Saturday a.m. show).

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  50. This can all be summed up as "We completely overestimated the number of fans who would pay for the Network."

    Do they honestly think a fan who hasn't signed up yet is going to sign up just to watch "Camp WWE" or whatever the heck Jerry Springer is doing?

    And I have no desire to see WWE wrestlers get "punked." Those guys and gals have to deal with enough bullshit from the company they work for.

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  51. That was much more entertaining than listening to regular commentary. Although after this, cole would come on and tell us how Beavis is referring to his genitals and that's the reason this is funny.

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  52. This week at Wrestlemania.. In front of millions of fans.. Roman Reigns got SWERVED!!

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  53. Unfortunately, it's just 1000 hours of Michael Cole saying "Vintage!"

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  54. Well, if they have zero intention of letting me relive 1998 through Monday Night Raw I suppose Springer is as close an alternative as any. Stewart's free right? Get him to do update on the Network about Monica, let's go all the way with this.

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  55. I was very shocked they were current enough to announce a show from "the guy who directed Jack Ass" and not Tom Greene. Then it took me a second to realize they didn't mean Spike Jonze and I thought, "good luck with that."

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  56. I totally agree with that. I'm assuming there was a huge drop at some point and they kind of glossed over it. Maybe I'm just giving my own experience too much weight, but I totally buy people signed up for the Rumble and Mania and cancelled the moment they were over.

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  57. You done just broke my brain.

    But I think from all that we arrive at WWE probably having legit numbers, but sort of picking and choosing to put forward the best impression.

    Right?

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  58. Obviously! That's a total cash cow! ^_^

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  59. I think they should just go all out and ask Stewart to do a show for them. Like film a stand-up comedy special from him. At this point, why not?

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  60. This company is so dumb. They'd get my money with a larger archive of stuff I haven't seen from WCCW, old WCW (pre-1995), Smokey Mountain, etc. Just as I feared, they are more content with branding this with awful reality shows, thinking that will cater to a large enough audience, while simultaneously pissing off the people they need $$$ from.

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