SPOTLIGHTED PODCAST ALERT (YOUR ARTICLE BEGINS A FEW INCHES DOWN)...
By James Caldwell, PWTorch assistant editor
WWE announced in their detailed 10-Q quarterly report that the company will continue to invest about $15 million in original TV/Network content each quarter going forward.
WWE is determined to avoid a big drop-off in post-WrestleMania Network subscriptions after experiencing a downturn following WM31 in 2015. One method is to increase the amount of original content offered on the Network.
WWE disclosed in the 10-Q that the company spent $15.1 million to produce a combination of non-live event programming for TV and Network distribution:
- “Total Divas” Season 5
- “Total Divas” Season 6
- “Total Bellas” spin-off
- Camp WWE
- “Swerved” Season 2
- “Holy Foley” starring Mick & Noelle Foley
The total expense of $15.1 million was up from $14.6 million in the second quarter of 2015.
WWE said they “anticipate spending approximately $15 million to $30 million to produce additional non-live event content during the remainder of the current year.”
It translates to WWE spending at the same rate of $15 million per quarter. Or, given the low-end of the range, WWE has given themselves room to cut the quarterly investment in half if necessary.
– On WWE’s Cash Flow statement, WWE included the $15.1 million as a line item of “Television Production Assets” under their Operating Activities.
Broadening out from the line item, WWE’s second quarter business only produced $2.7 million in Net Cash from Operating Activities, down from $28.1 million in Q2-2015.
WWE disclosed: “The $25.4 million decrease in cash generated by operating activities was primarily due to the timing of working capital, including the receipt of payments related to the Company’s television rights agreements, as well as the increased payout of management incentive compensation compared to the prior year period.”