While most pro wrestling fans were still talking about WrestleMania XXX on Monday, April 7, business insiders noted that the WWE released the number of subscribers to its fledgling network. The initial data revealed that just over 667,000 people have subscribed to the WWE Network. Falling well short of the one million subscribers that the WWE needs to break even, many people became concerned that the WWE had not reached its benchmark.
The gamble that the WWE took by starting its own network is that its monthly pay-per-views are now available for $10 instead of $50 or more. The hope is that more than five times as many people will sign up for the WWE Network than had been purchasing pay-per-views. The other concern is that the WWE expected a surge of new subscribers to catch WrestleMania XXX, but that still didn’t help it to reach the one million benchmark.
Coincidentally, WWE stock plummeted the rest of the week after this news broke on Monday. In fact, its stock fell over 26 percent over the course of the week, down to $21.12 per share. Although stockholders don’t divulge why they buy or sell shares, it is fair to presume that the number of subscribers to the WWE Network is the reason for the sell-off. However, 667,000 WWE Network subscribers is actually a very strong number.
Unfortunately for former stockholders, they neglected a very important detail about the WWE Network. At this time, the only people who can subscribe to the network are wrestling fans living in America. Considering that only one country in the entire world can subscribe to the WWE Network right now, I believe it is great news that the WWE is already two-thirds of the way towards turning a profit.
For those who may not be aware of how popular the WWE is globally, all experts on pro wrestling agree that America’s top promotion is also the leading wrestling organization around the world. The promotion is also extremely popular in Canada, Europe, South Africa, India, and Japan. When wrestling fans in these countries can also purchase the WWE Network later this year, the WWE will fly by its benchmark of one million subscribers.
Prior to the recent sell-off, WWE stock had been rising steadily. So this may be nothing more than some people looking to turn a quick profit. But when foreign subscribers help the WWE put the smack down on its benchmark, many former stockholders will be wishing they had exercised more patience.
Patrick Michael lives in New Orleans and has always been a big fan of pro wrestling. Patrick’s favorite wrestling promotion was Mid-South Wrestling back in the 1980s. Patrick’s favorite wrestling angle of all-time was the NWO and his favorite wrestler is Roddy Piper. Follow Patrick Michael on Twitter at patmichael84.
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