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
WWE Smackdown Live Viewing Party
Another WWE Female Talent Sidelined With An Injury
Nikki Storm On What Sets Her Apart From Other WWE NXT Talents, Her Goals, International Experience
Increase For This Week's Lucha Underground Viewership, Video From "No Mas" Match
Cameron Says She's A Victim Of Cyber Bullying, Says Angry Wrestling Fans Live With Their Mothers
New Camp WWE After RAW (Video), Former WWE Star Taking Bookings, Triple H Workout Clip, WWE Stock
Roman Reigns Vs. AJ Styles Promo, WWE NXT Pre-sale Notes From Today, WWE - Komen And SummerSlam
Has Eric Young Signed With WWE NXT?, WWE Releases Strength & Conditioning Coach, Cruiserweights
** SPOILERS ** WWE SmackDown Tapings For This Week
Spoiler: WWE Superstar Getting Re-Packaged, Partnering With A WWE Hall Of Famer
Ryback Publishes Lengthy Blog On His WWE Status, Being Sent Home, Meeting With Vince McMahon, More
Backstage Updates On Seth Rollins And Randy Orton Returning To WWE TV, Shinsuke Nakamura Sales
Backstage Chicago Screwjob Note, More On Ryback's WWE Status, Bret Hart - Triple H, Pat Patterson
WWE Star Injured At Last Night's WWE TV Tapings?, WWE RAW Rating Up, Labor Day RAW
WWE Star Undergoes Surgery
Sami Zayn On Not Touching Shinsuke Nakamura Before Takeover, Pain In His Shoulder, Main Roster, More