At a retail price per month of up to $9.99, this would represent estimated incremental OIBDA, net of potential pay-per-view cannibalization, between $50 million and $180 million. Managing subscriber growth contains significant execution risk and actual results could vary materially from this range based on, among other factors, the rate of subscriber adoption and churn rates, as well as changes in pricing, promotion levels and distribution terms.
As shown below, the Company estimates that the WWE Network, on a global basis, will require 1.3 million to 1.4 million subscribers at "steady state" for the WWE Network's incremental OIBDA to offset the complete cannibalization of the Company's Pay-Per-View and SVOD businesses. At 1.3 million to 1.4 million subscribers, the Company's Network segment, which includes the results of WWE's Network, Pay-Per-View and SVOD businesses, would generate OIBDA results of $40 million, (+/- 10%), which is on par with the OIBDA profits generated by the Company's Pay-Per-View and SVOD businesses in 2012.
WWE Business Outlook for 2014 and 2015
The rate of subscriber adoption is a critical determinant of the Company's projected future financial performance. If WWE Network achieves approximately one million subscribers by year-end 2014, it would yield a 12-month average of 650,000 subscribers for the year.9 This rate of adoption in 2014 translates to an estimated 2014 OIBDA loss ranging from $35 million to $45 million, and a 2014 Net loss ranging from $45 million to $52 million.
If WWE Network achieves an average of 2 million to 2.5 million subscribers for 2015, the Company's 2015 OIBDA is expected to range from $125 million to $200 million, and 2015 Net income expected to range from $57 million to $105 million. Actual subscriber levels and financial performance could vary materially based on various factors.
Short URL: http://goo.gl/ft4xX6
Champions Announced For Andre The Giant Memorial Battle Royal, More New Names For The Match
WWE 205 Live Viewing Party: Kendrick To Teach Tozawa Another Lesson?
SmackDown Superstar Returns From Injury Tonight, Announces WrestleMania 33 Role (Video)
Mauro Ranallo Off WWE SmackDown Again, New Video From Erick Rowan, Kalisto In Tonight's Dark Match
WWE Title Being Defended At Indy Event, Fans On How Long Goldberg Vs. Brock Lesnar Will Be, Natalya
WWE SmackDown Live Results, Your Feedback And Viewing Party
WWE Cameras Following 4 Superstars In Orlando, HHH Trains For WrestleMania (Video), Cena And Nikki
Austin Aries Responds To Pre-show Criticism, WrestleMania Section On WWE App, WWE Around The World
Exclusive: WWE SmackDown Star Reportedly Done With WWE
WWE Monday Night RAW Results - The Undertaker's Cemetery, Final WrestleMania 33 Hype, Braun Strowman
Two WWE Stars Removed From The SmackDown Roster
Photos And Videos From Early WrestleMania Set Construction, Rumors On A Roller Coaster Being Built
Gail Kim Tweets Response To Stephanie McMahon, John Cena "WWE Fury" Video, Dean Ambrose Signing
Ryback On Why Roman Reigns Hasn't Turned Heel, Underutilized WWE Stars, Why Curtis Axel Isn't Pushed
What Happened After WWE RAW Went Off The Air With Goldberg?, Rumored Returns At WrestleMania
Man Passes Away During WWE Live Event In Portland, Maine