WWE News

WWE NEWS: Major TV distributor considering dropping PPVs, McMahon and WWE issue response (w/Analysis)



Jan 10, 2014 - 10:39:16 AM

PLEASE TAKE A MOMENT TO BOOKMARK US & VISIT US DAILY

By James Caldwell, PWTorch assistant editor







DirecTV is the first major PPV carrier to offer a response to WWE's Network announcement. And, the response was not favorable to WWE offering their PPV events as part of the $9.99 monthly subscription starting with WrestleMania 30 in April.



The satellite company said in a statement that they will "quickly re-evaluate" their business relationship with WWE, including potentially dropping distribution of the $55-65 priced PPV events.



DirecTV also took a dig at WWE's declining PPV buyrates, saying the audience "has been steadily declining, and this new low-cost competitive offering will only accelerate this trend."



WWE CEO Vince McMahon responded: "I think it’d be foolish for them not to want to carry the pay-per-view anymore. It’s found money for them."



WWE added in a separate statement: "WWE hopes to continue to be in business with our pay-per-view distributors, ultimately giving our fans the choice between the two offerings."



Caldwell's Analysis: There's a lot going on here. As it turns out, McMahon turned down an offer from "major distributors," calling it "too restrictive." So, WWE went to a self-distributed, online model after failing to work out a carriage deal for traditional distribution. It's potentially a big loss for traditional carriers, especially knowing in-advance that WWE was going to include PPVs on the Network. Now, PPV companies are concerned about losing the monthly WWE PPV revenue.



On the other hand, WWE acknowledged the likely cannibalization of their PPV revenue in an SEC filing Thursday, so it's pretty silly of WWE to say they hope fans will continue to have two choices when the eventual goal is to move all PPV distribution to Network. WWE needs to have two distribution models, especially for less tach-savvy, traditional TV watchers who make up a good portion of WWE's audience. But, WWE would prefer a world where the Network is humming and they are the only distributor of their PPVs and do not have to split the cost 50/50 with PPV carriers.



[ LINK: Full Report HERE at LATimes.com ]



CLICK HERE FOR EVEN MORE PW.NET HEADLINES