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PWTorch editor Wade Keller presents a special Thursday Flagship edition of the Wade Keller Pro Wrestling Podcast featuring a WrestleMania 36 Preview with ex-WWE Creative Team member and professional stand-up comedian Matt McCarthy.
(Search “wade keller” to subscribe in podcast app or CLICK HERE to subscribe in Apple Podcasts.)
WWE held their Third Quarter 2015 conference call Thursday morning to discuss the latest financial results. The following are highlights from the call hosted by WWE CEO Vince McMahon and financial executive George Barrios.
– Full Report on WWE addressing slumping TV ratings.
– WWE believes the rise and popularity of the NXT brand relates to YouTube popularity and social media engagement. “We attribute a lot of NXT growth and vibrancy to social media,” Barrios said, “which is why a brand available on a Network-based subscription service can sell out the Barclays Center,” referring to NXT: Takeover in Brooklyn.
McMahon referred to NXT as “turning into a brand itself” in his opening remarks, even crediting “Paul Levesque (Triple H), my son-in-law.” However, Barrios said during the Q&A that WWE does not view NXT as a competitor to the “main stage” brands of Raw or Smackdown.
“That doesn’t even enter our minds,” Barrios said. “Different people like different things. It has a different vibe, feel, and the audience is different.” Barrios added: “We’re not worried at all about quote/unquote competition.”
– Regarding different price plans for the Network, Barrios said WWE likes the simplified $9.99/month approach, as it’s easy to market and get the message out. Barrios said there might ultimately be different versions of the Network at different prices long-term, but right now they like the simplified approach.
– Barrios declined to talk about their business partnership with Tapout. “We’re not making any news today,” Barrios commented. He said to “stay tuned” on product announcements.
WWE did make some news in their 10-Q report filed with the SEC by disclosing new details on their investment in Tapout’s re-launch:
“During the current year period, the Company received an equity interest in Tapout valued at $13.8 million in exchange for promotional service obligations to be provided in the future.”
WWE said they met the obligation during the current-year period, so they recorded revenue of $1.58 million in Q3-2015. Through the first nine months of the year, WWE has recorded revenue of $1.68 million.
WWE currently has $14.275 of assets related to their investment. Their remaining “service obligation” to the 50/50 agreement with Tapout is $12.120 million. Therefore, if the partnership were to fall apart, WWE’s “known maximum exposure to loss approximates the remaining service obligation to Tapout, which was $12.120 (million) as of September 30, 2015. Creditors of Tapout do not have recourse against the general credit of WWE.”