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As I discussed in my first column, the Mixed Match Challenge on Facebook has much bigger implications for the WWE’s future than a one-off content opportunity on Facebook. Now Variety’s Kristopher Tapley reported that both Facebook and Amazon are interested in bidding for the rights to Monday Night Raw and Smackdown.
With the current deal between NBCUniversal and WWE set to expire at the end of this year, the decision for a partner will come much sooner than later. (Waiting too long to sign their next partner deal would only hurt their stock price.) With a big decision looming, it’s important to understand how WWE is likely evaluating their options. While the lure of TV is always enticing, WWE would be wise to consider Facebook as a legit option.
WWE’s motivation on this deal has to be more than just revenue attached to the deal, or length of contract (and let’s assume all bidders are in the same general price range). For one, they have to be thinking about overall exposure. With WWE Network a reliable and meaningful source of monthly revenue, it’s important their future partner continues to give them exposure to a wider audience that they may be able to convert into subscribers.
NBC has given them good exposure and a strong advertising push for their programming, which no doubt has aided to convert casual fans into network subscribers. But, while NBC has done a great job bringing exposure to the WWE over the last 25 years, USA doesn’t have the depth or reach of Facebook, which reaches 2 billion monthly users. It’s conceivable (although WWE would be smart to get it in writing) that FB could push products to a large swath of those users on a daily/weekly basis. It’s impossible for NBC/USA to do the same.
This particular wrinkle makes Amazon, in my opinion, a difficult digital partner for WWE. Since users would have to pay for Prime access to watch WWE, it’s a difficult pitch to those users to then pay another subscription fee on top of that to watch additional WWE programming. There are too many gates for Amazon.
Beyond their general reach, the data that Facebook controls is more valuable than anything NBC can give users. It’s likely Facebook knows more about you than most media companies combined. This is extremely important for WWE. Facebook could allow them to not only target a wide chunk of users, but more specifically a very targeted number of users who would be most interested in converting to full-fledged wrestling fans.
Working with Facebook could also be a game-changer in terms of their international expansion plans. While Raw is already broadcast in dozens of countries all over the world, Facebook has a very similar reach and, again, they have the information about their users that could enable WWE to make sure their programming was being viewed by the right users in each country.
It should also be noted that Facebook has expressed the desire to be more involved in content production, like competitors such as Netflix and Hulu. WWE has long been involved in creating content outside of the ring but to little success. While Universal is well entrenched in the content development and distribution world, there is little need for what the WWE is producing. But Facebook, looking at the very least to test more content, could be a great partner to work with WWE on longer form content and original shows.
A final thought here is one of motivation. WWE, almost above all else, needs a partner motivated for their success. NBC has made it clear how much they value the WWE and what their programming does as a halo effect to their network, but Facebook has a lot to gain by making WWE a successful partner.
They would be able to show bigger companies like the NFL that they can successful stream live content. They can also show advertisers how well they can target ads through their platform and direct conversions to purchasing can be tracked through their service. A successful WWE partnership could be the momentum Facebook needs to start taking a good chunk of the TV ad dollars they covet.
There’s no doubt that the WWE will do whatever is best for business, but thinking outside the box could be the best thing.
NOW CHECK OUT THE PREVIOUS COLUMN: IT’S JUST BUSINESS: The WWE Mixed Match Challenge isn’t about wrestling – where this fits into McMahon being a forward-thinking CEO aiming for younger fans
If WWE switched RAW and Smackdown to Amazon, they’d lose this viewer. I’m not paying for seven different subscriptions just to watch wrestling. I’m sorry, I’m just not.
You do make a good argument for them to consider Facebook, though. In the end, I think they’d be wise to re-up with NBC however if the offer’s competitive. The grass isn’t always greener on the other side of the fence. They jumped once before (Spike TV, was it?) and it didn’t really work that great.