SPOTLIGHTED PODCAST ALERT (YOUR ARTICLE BEGINS A FEW INCHES DOWN)...
The deeper into the WWE Network introduction, the more questions arise about whether WWE’s media business is better before or after the Network.
The First Quarter 2016 results indicate the media business is better from a revenue standpoint. Profitability is still a question because of the ramp-up costs that WWE is still recovering from.
However, looking at three key areas of WWE’s media division – Network Revenue, PPV Revenue, and Home Video Revenue – it appears the Network is growing at a solid rate.
Plus, even when PPV disappears completely and as Home Video continues to dwindle, the Network Revenue surpasses the previous era by itself. Again, profitability is still in question.
In the first quarter, Network Revenue was $38.2 million, topping the combined revenue of Network, PPV, and Home Video in Q1-2014 when the Network launched.
However, Network Revenue alone did not beat Q1-2015, which totaled $42.3 with the benefit of WrestleMania.
A more even comparison will be the half-year numbers released in the next financial report that cover January through June.
The following is a chart breaking down the effects of the Network on the media business, especially the soon-to-be-extinct PPV business and shrinking Home Video revenue as consumption habits move to digital and the Network.