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
J&J Security Makes Changes To Their Cadillac CTS, Names Backstage At RAW, WWE Network In Italy
WWE Monday Night RAW Results, Live Coverage And Your Feedback
US Women's Soccer Team Tweets The Rock, Rock's Unrealized Dream (Video), San Andreas, Rock Milestone
Kevin Owens Set To Address WWE NXT Title Loss On Tonight's RAW, Teasers For Owens And John Cena
More Bad WWE Ratings News, Dolph Ziggler Praises Luke Harper Match, Titus O'Neil, WWE Shop Sale
Former WWE Diva Gives Birth?, Beast In The East, Finn Balor On Tonight's RAW Pre-show?, Making Towns
Seth Rollins Taunts Brock Lesnar, WWE And Virtual Technology, Eva Marie Training Clip, WWE Contest
WWE "The Beast In The East" Results - Brock Lesnar Returns To Action, NXT Title Match, More
Brock Lesnar Update For Monday's RAW, Chris Jericho On His Match With Neville, WWE - Sumo Hall
Chyna Talks About The Last Time She Saw Triple H, What Happened During Her Trip To WWE Headquarters
Randy Orton Gets Engaged, Brock Lesnar's Most Unusual Opponents, Total Divas Preview
Vince Russo Recalls Original Plans For Chris Jericho's WWF Debut