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  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Very good call for Barrios with J.P. Morgan. He seemed a bit more at ease and gave some new detail as to what management is looking at as far as growing the Network. Liked the new info on how they pick NXT cities to perform in.
    May 20, 2015. 04:25 AM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Not really crazy about the late release Friday on the Studio side as it seems management is putting the cart before the horse. The Studio in the past has been a minor cash drain. Hopefully this doesn't set it up to be a major one as on the movie making side WWE has had little success. It would have made more sense in growing the Network and then spending on this part.

    Also, with Barrios speaking Wednesday, it seems the stock is manipulated down on the days he speaks and it's not because he is saying anything new. I'm going to put a Instablog article after this speaking event as I think WWE stock, as one of the readers of my articles, is manipulated short term especially because their are only two known fundamentals. The first being the increase in cable contracts to 2018 that could give WWE as much as $1.00/share bottom line. The second is that the Network is no longer a drain on capital going forward. It's these two key factors that are establishing a bottom on the stock.
    May 16, 2015. 10:28 PM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Great analysis Atticus. I think no one really knows where the sub count will peak out at now as it's way too soon to tell. Once the model inverts and subs start going down YOY that's when a red flag should be waived as to future growth. Unfortunately, management has little credibility with the Street with the less said being best. Management seems to miss what a lot of us see. Your right too that if they ever start getting the message right, in the short term it will hurt them. Longer term the truth is the truth and the Street will view this favorably.
    May 10, 2015. 01:07 PM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    AP only disagree because the hardcore wrestling fan will subscribe to the Network. No one is looking at Netflix numbers as the Network numbers. WWE has a large niche following around the world, but Netflix has over 60 million subs and is still expanding abroad. The point of any comparison to Netflix is the streaming subscription count was built over a number of years. There is no other online model to compare the Network's growth to other than Netflix. The WWE sub count, despite all that the naysayers put out there, is growing and not going backwards when YOY comparisons are made.

    A new metric, and I'm about to research it, is that if the Network currently attracts about 1,000,000 subs in the US (almost 24% of the average viewership of Raw-3.8 mil), how does that translate to potential foreign subs relative to Raw viewership. Obviously the ratio will be lower, however, this is more important than WWE management's numbers on hardcore fans around the world and potential sub counts.

    I found an interesting article from January 2007 from the N.Y. Times. Netflix's obituary was being written as they were about to start their streaming business. In the article, it stated that when investors were told that Netflix would invest $40 million in this new unproven venture, the stock dropped to about $22/share. Again the comparison is not the Netflix sub base versus the Network. Big difference from 60 million subs to the 2 million that is within the reach of WWE and elevates the Company to a different level.
    May 9, 2015. 02:36 PM | 2 Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Vandalizer the only comparison to Netflix was the fraction of subs that Netflix has for the Network to be successful. Recognizing the difference in products, because the Network has limited interest, we're not looking at Netflix numbers. Also, both are streaming sub models. There still isn't much out there to compare the Network to that leaves any comparison difficult to make. Additionally, all subscription models, take a number of years to build a base until the counts level off.

    Also, PPV's for WM exceeded my forecast by almost 100K hitting 259,000. WWE in now getting about 25% of the Raw viewership total as subs through 3/31.

    Vandalizer are you a subscriber? Just curious, as I've viewed much improved content since I subscribed last August.
    May 7, 2015. 11:27 AM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Vandalizer it's not because the metrics are bad, it's because they are stuck in the old methods of reporting. Management has been very consistent in when they report numbers with good numbers coming out before any quarterly release. The fall out, based on Barrios OIBDA calculations starting at 1 million subs for the second quarter, indicate that they have at least 1.1 million subs starting in April. So if they had a 200,000 fall off in subs as of April 1st is this terrible? How many of those are buyers who would never have purchased a PPV? Barrios had to leave a cushion in the second quarter in case there is more fall off. Not that this is a number to jump up and down about, but it shows the model is working as it attracts more subs over time. No subscription model hits its peak at inception.

    Also as Raw draws from 3.6 to 3.8 million, the U.S. sub count was over 1.1 million (assuming no foreign subs in that amount) at the close of the quarter. When you look at where the Network needs to be down the road, we're talking about 2 million subs to be extremely profitable. That is a fraction of the Netflix subscriber base. Hopefully by 2017 they can get there. Time will tell.

    Thanks for your input.
    May 7, 2015. 01:39 AM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Thanks Insider. Your remarks add to why the Network will most likely be a success despite management feeble attempt to make the numbers more transparent and tell an accurate story.

    As far as the Studios, I think as they build the base of Network subs it feds into the other ventures. Web store sales, purchases of movies and attendance at events, especially NXT, increase. With extended global reach it's like a snowball going downhill, getting bigger and consuming more in its path. Once they reach a sustainable level of profitable on the Network, it would make sense for the Studio to develop more original content. What management is doing now is adding content at a low cost. Studio productions will be more expensive and are probably part of the bigger picture down the road.
    May 6, 2015. 12:56 PM | 2 Likes Like |Link to Comment
  • Fr. Emmanuel Lemelson Discusses Apple's iPhone Sales, World Wrestling Entertainment's Strategy And Other Issues [View article]
    The Rev is wrong on the WWE Network sub count. As why would Barrios present a chart that starts at 1 mil subs for the 2nd Q when they are under that? All his other presentations start at much lower sub counts. My guess is that after WM they probably at 1.1 mil subs or higher. Also the Rev did not look at the Network numbers this quarter and ongoing. It's obviously not a cash drain anymore and worst case scenario has it at b/e. What has changed since he sold his position at $16.50/share. Had the Network deteriorated?
    May 1, 2015. 11:38 AM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment higher after healthy Q1 beat [View news story]
    Dante your comment on the CFO might be correct. However, I think its the mindset, content and how management creates uncertainties that leaves the stock lingering. Shocking how a positive earnings surprise along with revenue beating top estimates has the stock falling. This doesn't happen when management presents itself in a clear, concise manner.
    May 1, 2015. 11:19 AM | 2 Likes Like |Link to Comment
  • World Wrestling Entertainment higher after healthy Q1 beat [View news story]
    Appreciate Insider.

    There's a disconnect between the Street and what management discloses. When you have these conference calls management needs to explain why things are the way they are. I'm going to listen to the c.c. again, but it's all in the Street' interpretation when management says nothing. So May's free offer was taken as an indication sub count fell substantially after WM (still over 1 mil). No indication as to how April's free offer was. Frankly without clarity management brings these stock price drops onto themselves. I still believe long term the Network will work out just fine.

    My next article will be directed toward WWE management as they need to connect to Wall Street and be more forthcoming.
    May 1, 2015. 01:08 AM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment higher after healthy Q1 beat [View news story]
    As good as it was, the critics always find negatives. Giving a free May on top of April is viewed as a sign of desperation, instead of building off the popularity of Wrestlemania. Also, I read a number of articles stating sub count after WM as low as 500K, however, management's 2nd Q guidance on subs starts at 1 mil. Increase in cable revenue contributed greatly to earnings increase and although we know how much it increases to 2018, management needs to give guidance as to the balance of the year.

    Long term holders should be thrilled at this release. As fundamentals emerge it will provide the base for the stock reaching higher highs.
    Apr 30, 2015. 10:18 AM | 4 Likes Like |Link to Comment
  • Fear Strikes At The WWE Network, Causing Investors To Go Psycho [View article]
    Earnings beat expectations, but critics continue to focus on what they view as negative. Giving a free May on top of April has them viewing this as a sign of desperation, instead of capitalizing off of Wrestlemania. In starting their sub model, Netflix gave existing subscribers to their brick and mortar model free streaming viewing for months based on the type of subscription. WWE comes out and crushes EPS estimates and the stock trades down. Also escalation of TV revenue to the 4th Q and this Q contributes substantially to revenue boost hitting the bottom line. It would be nice if WWE management gives cable revenue guidance. The strong positive was WWE OIBDA chart for the 2nd Q starts at 1 mil subs. There were some analysis who saw this possibly dropping to 500K subs going into April.

    Bottom line is that WWE needs to continue exceeding analyst estimates Q after Q and generate a base sub count that puts its critics in a defensive position. In the short term, it's always the traders and skeptics who control the price of the stock. Only longer term fundamentals emerging will work to the benefit of the investor.
    Apr 30, 2015. 10:00 AM | 2 Likes Like |Link to Comment
  • Fear Strikes At The WWE Network, Causing Investors To Go Psycho [View article]
    User thank you for the compliment, it's greatly appreciated.

    In 2013 PPV had net revenue of $82.5 mil with OIBDA of $33.8 mil. At 1 mil subs the OIBDA will be in the ballpark of $45-$65 mil per the Co. What I found interesting was Barrios comment, in a recent Bloomberg interview, that after break even, 80-85% of a new subscriber revenue goes to the bottom line. There is no hard annual operating cost, however, the unit cost to add content decreases for every new sub. Keep your eye on online store revenue as this could be a tremendous growth driver down the road.
    Apr 17, 2015. 11:22 PM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment updates on streaming subscribers [View news story]
    Go to the wwe corporate website and here's the link. WWE Investor Relations using the term "currently" in mentioning sub count. Won award and released current sub count of over 1.3 mil. Most likely includes free subs (as pointed out by Chris Harrington). Free subs should be around 150K. So beginning of April sub count was most likely in the neighborhood of 1.1 to 1.15 mil. A good benchmark for the rest of the year.

    http://bit.ly/1GTNadR
    Apr 17, 2015. 11:24 AM | 2 Likes Like |Link to Comment
  • Fear Strikes At The WWE Network, Causing Investors To Go Psycho [View article]
    Insider that would be a tremendous mistake as cable revenues were almost 33% of total revenue in 2014. Plus this will be increasing $105 million to 2018. It's Raw and Smackdown where the Network will draw their subscriber base from. The Network is for the more avid fan. They would lose their casual fan base if they ever made such a permanent conversion.
    Apr 16, 2015. 12:23 AM | Likes Like |Link to Comment
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