WWE NETWORK IS DRIVING AN INCREASE IN REVENUES

Posted February 16th, 2016 by 1Wrestling News Team

<strong>WWE Network is Driving an Increase in Revenues</strong>

Bringing the WWE Network to the masses was a bold move even by Vince McMahon’s standards. But after its initial setbacks, their innovative digital platform has helped the WWE post huge revenue increases and cement their reputation as one of the biggest entertainment companies in the world.

In the first quarter of 2015, the WWE’s revenues increased by 40% which resulted in the company’s best quarter in its history. Total revenues for said quarter amounted to $176.2 million, which surpassed the company’s projected forecasts. A determining factor was without doubt the WWE Network, which has more than 1.3 million subscribers now paying $9.99 a month for the service.

What’s even more impressive is that the service has seen an increase of 99% since the 2014 WrestleMania. It’s success even had an impact on other sporting organization such as the UFC who also launched its own version of the Network entitled Fight Pass, a matter of months after the launch.

It’s a far cry from where the Network was at during the latter parts of 2014 when the WWE released a statement saying: “The rate of WWE Network subscriber adoption is a critical determinant of the company’s projected future financial performance.” Basically, if the Network would’ve failed, the company would’ve been in a precarious position according to Variety. The outlay that the WWE had to commit to the Network in the initial stages hasn’t be disclosed but is said to be in the tens of millions of dollars.

However, the Network’s fortunes soon changed and contributed largely to the WWE’s best ever quarter. “During the quarter, we generated record quarterly revenue and strong earnings growth, reflecting our strategy to realize greater value from our content across multiple platforms,” commented WWE Chairman & CEO Vince McMahon. “We believe that we are on a path to significant growth as we continue to expand WWE Network and innovate faster than ever.”

Regardless of the success, what many people ignore is the push for innovation that McMahon instils in his employees. WWE again and again stay ahead of the curve in the entertainment industry regularly launching new products, games and wrestlers to help expand their global reach. WWE is known for breaking barriers in technology as well as entertainment, and the Network took things to a whole new level for the company especially this year.

By launching the Network, the WWE’s extending its reach to smartphone users for the first time, as they identified this as an important sector to stream their services. With over two billion smartphones users worldwide as reported by EMarketer, the WWE knew its new service had to be mobile-friendly. Social gaming and streaming platforms are now integrated into consumer’s daily lives with more than 17% of the global population owning a smartphone according to PocketFruity subsidiary Bear Group Limited. Thus, the WWE knew that the Network, to be a success, had to be accessible on-the-go like many of the go-to global mobile-friendly gaming, news and entertainment portals currently prevailing in the pop culture landscape.

With its records breaking first quarter and the ability to keep hold of superstars like Brock Lesnar, the WWE seems stronger than ever. It’s just a question of what innovative service they have up their collective sleeves next for wrestling fans.

Category: Wrestling.

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