Netflix Should Buy a WWE and UFC
May 18, 2016 - WWE
I’m a Netflix subscriber and we adore a service. What’s more, my family loves a use too. So many so that my second oldest son, who can’t even read, is means to corkscrew by Netflix on his iPad and simply name shows that he loves to watch on a service. In fact, my boys adore Netflix so many that while we were on a new vacation my dual oldest boys sat examination radio in a hotel room and eventually a oldest said, “What is this?” while looking during a television.
I fast schooled he wasn’t articulate about a kid’s uncover on Sprout, though about a commercials, that he’d never seen before in a house. Everything my kids watch is possibly on Netflix or Comcast OnDemand. My dual oldest boys had never seen commercials on a shows they watch. They — and their one and a half year aged younger hermit — also trust that any uncover that’s ever been done should be accessible to them during a moment’s notice with no commercials.
Just when TV executives suspicion cord slicing was a challenge, good fitness with programming for this subsequent generation. They wish all you’ve ever done whenever they wish it though a singular blurb included.
Which fits a Netflix gameplan perfectly.
But there’s one thing that Netflix doesn’t have many of during all — live eventuality programming. What’s many live eventuality programming that rates highly? Sports.
Netflix is perplexing to be all things to all people, though right now they have no disdainful sports programming. This isn’t singular to Netflix, Amazon, Google, Apple, Facebook and Twitter don’t have any disdainful live sports programming either. (Twitter will lift NFL Thursday night football this fall, though it isn’t exclusive.) The vast doubt in sports is possibly Amazon, Google, Facebook, Apple, Twitter or other online companies will ever get into a live sports business. If they do, given a marketplace capitalizations of these companies, sports rights fees could raze from where they are now. If they don’t, afterwards a cord slicing disaster in wire could lead to disappearing rights fees. So this preference is value billions in a nearby future.
You guys know that we consider utterly a bit about a destiny of media. Whether it’s with a daily Outkick Show that we tide live on Facebook, Periscope, Fox Sports Go, and YouTube and afterwards yield around audio on podcast and SoundCloud, or a destiny of online media and sports businesses, we adore meditative about where a attention is headed.
One of a sports and media companies that has many preoccupied me for a past several years is WWE. we wrote dual years ago, only as a WWE was negotiating a TV package and determining to launch a WWE Network, that Fox, CBS, Disney, Comcast or Turner should buy WWE and pierce a programming all in residence on their sports wire networks. Given how fast media companies have gobbled adult indepdent companies like Pixar, Dreamworks, Marvel, and Lucas Films over a past decade, it’s unavoidable that someone will come along and buy out WWE as well. The assembly is only too vast and committed for WWE to stay indepedent forever. (Full disclosure: I’m a WWE shareholder since we trust in a company’s future).
That’s when it strike me a few days ago — Netflix, that desperately needs strange content, should buy a WWE.
The some-more we suspicion about it, a some-more it done ideal sense.
The WWE has built out a possess over-the-top network that has around 1.4 million subscribers a year profitable $9.99 a month for entrance to all of WWE’s pay-per-view eventuality programming and a whole chronological repository of wrestling matches. That’s around $170 million a year in revenue, that is a tiny fragment of a volume that Netflix is doing now, though it’s genuine income in sell for, wait for it, tens of thousands of hours of archival calm total with yearly vast live events.
We don’t know how many of these WWE subscribers already allow to Netflix — positively many do — though adding a WWE and rolling a network into Netflix would really supplement hundreds of thousands of subscribers to Netflix. And for around $2.5 billion Netflix could buy a whole WWE. That competence sound expensive, though in 2016 Netflix will spend $6 billion on disdainful programming and calm for a subscribers. So over a 10 year duration you’re articulate about a comparatively tiny investment of $250 million annually. That’s not only a good deal, it’s a steal. Comcast is profitable scarcely that for only a few hours of weekly programming that it front on USA and it gets no tenure of a archival content.
But if we adore WWE and what it could do for your calm offerings, right now a UFC is also adult for sale according to ESPN’s Darren Rovell. For around $3.5 billion Netflix could also buy a UFC and all their reward programming and archived matches as well. Can we suppose if your Netflix subscription enclosed any reward WWE eventuality and any live UFC eventuality as well? Basically Netflix has a eventuality to make a vital pierce here and supplement a sports programming member to a use overnight.
Given how renouned a WWE and UFC are universe wide, it’s not only a play that creates clarity in America either, this is a tellurian calm buy that ensures fresh, strange sports programming for Netflix for decades to come. What’s more, any singular stream UFC and WWE eventuality that front on wire radio on USA and FS1 doubles as a giveaway announcement for Netflix. On tip of that, we can cranky foster a stars of a UFC by WWE programming. Ronda Rousey shows adult and bodyslams someone, Conor McGregor retires from UFC and goes true to WWE. You wish to watch a latest Wrestlemania or UFC event? Sure, we can buy them by pay-per-view for $60 each, or we can pointer adult for Netflix for a year and have them enclosed as partial of your monthly fee.
It’s an implausible value and it would grow a UFC and WWE code since Netflix’s outrageous assembly that competence not already be unprotected to WWE and UFC programming could watch a events as partial of their subscription package. If Netflix bought a WWE and a UFC they could supplement a reward sports assign or, in an even smarter move, they could only adult a subscription cost over time arguing that you’re now removing a improved value than we were before. Sure, some people cancel any time a cost goes up, though a reason Netflix is spending $6 billion on programming this year is since they need strange content.
Why not supplement tends of thousands of calm and live strange calm with one purchase?
It’s pristine genius.
Which is because Netflix should make this occur — buy a WWE and a UFC and reap a advantages of your squeeze for decades to come.