With the launch of the WWE Network, Vince McMahon took a somewhat revolutionary approach to delivering content by almost completely circumventing cable providers. There has been major backlash from the ostracized cable providers, with Dish and DirecTV choosing to cut WWE pay-per-views as a sign of defiance due to lost revenue.
One would assume that the WWE would be raking in the dough by cutting ties with middlemen cable providers. That has not been the case thus far, however. Instead, recent reports indicate that the company has lost between 45 and 53 million dollars this year alone.
The recent budget woes have resulted in the WWE instituting a number of budget cutting measures. Most importantly, a number of WWE talents have been terminated, including Josh Matthews, Brodus Clay, and Drew McIntyre. Additionally, it seems as if the WWE is trying to nickel and dime its superstars in an attempt to save money by adopting a policy that fines athletes for not appearing in professional attire or showing up to the arena a minute late.
In order to simply break even, the WWE has said they would need at least 1 million Network subscribers. The press release after WrestleMania reported that there are 667,287 subscribers, far short of the goal of 1 million. There is even speculation that the next press release could see fewer subscribers, due to the fact that the WWE cancels accounts that do not have sufficient funds at the time of withdraw.
While that seems unlikely, it does seem like the WWE has a long way to go before breaking even, let alone actually turning a profit. This leads one to wonder if the WWE Network is ahead of its time.
