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WWE News: WWE Network updates - "late stages" of negotiations, insight on revenue model, new Network reality show, analysts still have questions

Mar 28, 2012 - 7:33:05 PM
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By James Caldwell, PWTorch assistant editor

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WWE marketing executive Michelle Wilson says WWE is in the "late stages" of negotiating some form of WWE Network distribution with potential TV partners.

"There will be a WWE network in some shape or form," Wilson told the Stamford Advocate publication in Connecticut. "Getting a distribution agreement for a cable network is not easy."

Despite WWE releasing promotional material in 2011 that pointed to a WrestleMania 28 Weekend launch for the Network, Wilson claimed there never was a target launch date, attempting to refute a N.Y. Post report earlier this year that the Network was in trouble. Wilson did not reveal if there is currently a target launch date.

Wilson did offer some insight on the revenue model - WWE will charge a subscription fee to each distributor, and they hope to reach 50 million homes.

Wilson suggested they are not partnering up with a company to share the revenue/cost burden of launching and maintaining the Network. "This is an all-WWE initiative -- fully," she said. "It's going to be a game-changer."

According to Wilson, WWE has filled 30 positions for the Network, and they anticipate needing to fill 120 positions. Current hires have come from ESPN, Viacaom, Discovery, and Warner Brothers.

Program will be key, and Wilson says WWE is working on a WWE Divas reality show to accompany the "Legends House" show they just wrapped up. Raw and Smackdown will remain on USA Network and Syfy, respectively, as expected.

"USA is the number one cable network in terms of viewership, and we are critical to USA," Wilson said. "The more places you are, the more your viewership rises."

Wilson did not address, nor does it appear it was brought up, whether the opposite result may occur - WWE over-saturating the market and spreading their audience too thin over USA Network, Syfy, and the Network.

Analysts interviewed for the story continued to stress the cost issue, as well as convincing cable network distributors to accept whatever rate fee WWE charges and believe that WWE can draw an audience to sell TV time to advertisers.

Link: The full article can be read at NewsTimes.com .


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