World Wrestling Entertainment (WWE) has sculpted several new fronts of opportunity. A lot of these new fronts coming to fruition in 2016. These include, expansion of the WWE Network, new businesses ventures like TapOut and reaching into the virtual reality media, and potentially a reality of monetizing social media. THE WWE NETWORK Analysts suggest that the network growth year over year could be higher than Netflix sub growth rates. The growth rates some are stating are 20%-25% year over year. Management has stated that this kind of growth would be considered incredibly strong. I believe that management is trying to be very careful with any wording on growth in the future. I believe this because they have a conservative viewpoint of having …show more content…
They use the argument that WWE is worldwide at this point and should see more aggressive growth in the coming years. 25% growth for 2016 would lead to just over 1.4m average paid subs for the year. I believe that Q4 may come in a little bit higher than Q3 because of the increased attention that the fan base has now. Along with that, they have increased the amount of content available in the library, increased the devices of which the network is available, and have now brought out in full force the WWE Network prepaid gift card which should be a nice stocking stuffer for this Christmas. January of 2016, WWE will be releasing the network to Germany and Japan. In terms of WWE affinity broadband homes, Japan is tied for 2nd with India, with Germany being next in line. These both could be good contributors for WWE Network subscribers. However, Japan does not currently have a good track record in term of OTT, especially in terms of wrestling content. The latest numbers I can find are the NJPW World only has 22,000 subscribers. Even with as many WWE fans are living in Japan currently, they are going to have to work hard to bring them to the network. There was an increase on average attendance for every quarter this year, not including Q1 because there were no international events during Q1, 2014. This increased demand for WWE …show more content…
WWE is quickly moving up the most subscribed and most viewed YouTube channel list, it will not be very long until monetizing social media followers is a reality for them. Along with YouTube revenue, WWE could start to implement sponsored posts across all of their social media platforms. Even a few posts a month could go a long way in increasing bottom line as the revenue would be very high margin. They currently have 570 million combined social media followers. A lot of these are overlap, meaning that one person could potentially contribute multiple times from following multiple twitter accounts, multiple Facebook pages and the YouTube page. However, this shouldn’t take away from the fact that the WWE has a great social media impression machine. Social media has multiple possibilities in terms of revenue streams. Not only are their sponsored posts or advertising revenue, there is also self-promotion. When the TapOut brand is fully launched in 2016, WWE has a lot of ability to really push its product. With a potential of nearly 600 million impressions across its social media landscape, there is no doubt that WWE could really move product of its new
Expand outside of the U.S., Puerto Rico and United Kingdom (where technology is moving at a slower pace and people are not as familiar with Netflix or VOD).
However, I wish there were more explanation about how that assumptions were made. Annual increase in store sales of 2 percent is not realistic when members per store is conservatively staying as 50 every year. If they consider more competitors in the industry, they should decrease this number. Revenue booked per member per year is increasing slowly but is lower than past performance. Also, they should consider more carefully with the membership fee because they are assuming that there is only one membership fee throughout ten years. Last but not least, one of their prediction was to have 10 percent of the population (500,000) in 2010. However, they only have 34,100 total members at the year 2010.
Economic drivers remain down from historical levels. In 2003, WWE created two separate major television programs, Raw and Smackdown!, each with it’s own story lines and talent. This was done to create two touring companies and increase the number of live events and provides the potential to increase to the contribution of the entertainment business. WWE just needs time to produce the intended marketplace results. The company consistently retains the merit of being the number one regularly scheduled program on cable TV with Raw on Monday nights on TNN, and Smackdown! Is the highest rated show on UPN. It airs on Thursdays.
Netflix provides a subscription-style e-commerce service. Customers only need to sign up and pay $13.95-39.95 a month to borrow as many as 2-9 movies at a time with no monthly limit. If customers quickly watch the DVD and send them back, the monthly fee pays for quite a few movies. The relatively low monthly fee enables Netflix to compete with Blockbuster and other brick-and-mortar video rental business. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has less problem in predicting revenue or level revenues.
Although Netflix has been extremely efficient about the way they are controlling their debt load we believe that they may be missing some opportunities to expand their services. Netflix could possibly free up some cash to explore the market opportunities for service to the video game enthusiast. Other than that we really think that if Netflix keeps improving at the steady pace its going, the company will have a bright future.
“Stock of the online DVD rental company was up more than 15% in early morning trading Thursday. Netflix increased their forecasts for both revenue and total subscribers today, trying to compete with powerhouses like Blockbuster and Wal-Mart. The increased forecast stems from a slew of new subscribers that have invested in the service after a price decrease from $21.99 to $17.99 last month. Despite the increases in revenue and subscribers however, some analysts feel that the business model is “fatally flawed” and the company may fall by the wayside due to competition from the aforementioned retail and entertainment powerhouses.” Investors Guide reported this.
? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues.
It all started in August, Bob Iger mentioned that DIS was seeing a slow down in ESPN’s growth due to the start of cord cutting. Cord cutting? Yes, cord cutting. This is when TV viewers cut ties with their cable providers and go to watching media via steaming web services like Netflix. This was the moment that exposed chink in the armor. DIS gets nearly 45% of their revenue from their media segment and it had 10% growth in 2014. Certainly, this could be an area of concern, sort of. It is like looking at a glass full or half empty, is “cord cutting” good or bad?
...iding convenience, selection, personalization and a low cost method for product delivery. Netflix posted gross profits for the fiscal year ending December 2006 of 996.7 million and increase of 314.5 million over the prior year. Net income increased by 16.8% during the same period. On February 25, 2007 the firm, hit a milestone when they delivered the 1 billionth DVD.
Netflix does not release viewing figures, however in October 2013 Netflix said that “the show is a "tremendous success" for the streaming platform. "It will end the year as our most watched original series ever and, as with each of our other previously launched originals, enjoys an audience comparable with successful shows on cable and broadcast TV
SNEL, A. (2013, 8 12). UFC plots aggressive path to expand global empire. Retrieved 8 13, 2013, from Review Journal: http://www.reviewjournal.com/sports/mma-ufc/ufc-plots-aggressive-path-expand-global-empire
Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily
Netflix has maintained the ability to increase their prices and their subscribers at the same time due to latent demand. With the price increase comes new content, more made by Netflix originals, exclusive contracts, etc. Latent demand is when consumers share a need that cannot be satisfied by any existing products or services. The importance of this is that it presents businesses with the opportunity to increase their revenue when they invest in marketing effort or introducing the low-cost products, like Netflix. Netflix was the first to come out with the streaming service the consumers wanted but did not know they could have. For a while Netflix had no real competition in this market until Hulu came along streaming TV shows right after they aired, Amazon Prime that is basically the same as Netflix was originally, and now HBO. Netflix has been able to add to their service as competition comes along in order to make their product more desirable, which has recently seen a few price increases. One would assume that the demand for the service would go down due to the price increases, but in fact the demand has increased due to the investments in new marketing and product development. How long will Netflix be able to maintain the latent demand, no one knows, but for now they are consistently
Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.
The business strategy that WWE works with is based on the content and the use of Television media to reach their clients. A prominent statement by the WWE Inc now is many websites reads as below (Construction executive, 2011) “Our formula is straightforward. We develop compelling content anchored by our Superstars. We market this content to drive television ratings, which, in turn, drive pay-per-view buys, live event attendance, WWE.com traffic, and branded merchandise sales and other business initiatives. Our strategy is to capitalize on the significant operation leverage if our business model through the distribution of this intellectual property across existing media platforms, as well as new and emerging distribution platforms. We are working to expand the ...