WWE Is About to Make a Major Change to Its Business Model
When WWE (NYSE: WWE) launched its streaming network, it was making a bold bet. The media company specializing in professional wrestling took its very profitable pay-per-view (PPV) events, which cost $59.99 for one event, and made them part of a service that was $9.99 a month.
The logic was that anyone who bought one or two shows a year -- even the most casual of fans -- would see the value in getting 12 PPVs (or more) as part of subscription-based WWE Network for $9.99 a month. The company forecast it would get to 4 million subscribers.
That has not happened. Subscriptions dropped 10% to 1.42 million in the fourth quarter.
Source Fool.com
