Structuring the WWE Network

Satellite radio and great ideas that came too late

The WWE network is a potentially great idea. Since WWE is a niche product with a passionate fanbase, it makes all the sense in the world to build a solid platform for its distributed content. But the way WWE is supposedly going about it is entirely wrong for the current market.

There’s this thing out there called satellite radio. The idea is, you pay for a service, and you get a great deal more channels than regular FM radio. The quality is better, the choices are better, and there’s pretty much something for everyone. The monthly fee is relatively low, and it exists mainly in places where radio generally exists: the car.

The only problem satellite radio faced was instant obsolescence. Because it launched in the early 2000s, it went right up against a torrent of change brought on by file sharing, iPods, and podcasts, let alone the influx of thousands of free internet radio stations. It must have taken years for satellite radio to be thought up, figured out, and created, and it certainly was a great idea five years before it launched. But it wasn’t as great when it actually did.

And yes, satellite radio is still around. Lots of people still use it. They figured out a way to survive and perhaps thrive in their own space. But I don’t think anyone thinks it wouldn’t have been way, way bigger had it not launched ten years earlier.

Launching a TV network today, in 2012, is actually way more shortsighted than the satellite radio companies at the turn of the century, because the disruption in how people watch video content began shifting years ago. WWE is apparently looking to launch a network on cable in 2012, years after it became clear that the internet and app distribution is the way to go.

The proposed plan (the TCM model)

Around a year ago, WWE finally announced their long-rumoured network. It would be a channel of some sort, though that wasn’t specified at the time. It would have new and old content, and you could watch it all the time.

This is what I wrote at the time, as speculation:

WWE would like to have a wrestling channel. They would like to take advantage of their vast library and leverage it for profit. They believe there is audience out there who will watch it, but perhaps not pay for it. If they did want to pay for it, the on-demand channel and WWE.com’s greatest matches would have probably already sufficed. I’m going to say now that I don’t believe that this will be a pay channel, but it may not be available to all cable subscribers. It will be something similar to, say, the Golf Channel or ESPN Classic. It will exist on a higher channel on cable, undoubtedly in the hundreds, and it will be in HD. It will likely be offered inside a sports package, as well as on its own.

Few details emerged right away, but what did confirmed my theory. Later on in the year, a few details spilled, and although they haven’t been verified, they offer potential clues:

The channel is likely 24 hours, not on demand. The channel might have “repeats” of Raw and Smackdown, which likely means USA and Syfy will still be the place to go to see first-run episodes. There may be two new weekly in-ring shows (my guess is repackaged versions of Superstars and NXT) There will be a wrestling news show, like Sportscenter (no mention of a talk show, like Tuesday Night Titans) The cost of the channel might be between $7–12 per month, paid through a standard cable bill (much like most other “extra” channels)

A little bit after these rumours, a few more details came out, the most notable being that the channel would have a staff of 200. But since then, we haven’t heard much. Details remained sparse even on the most recent WWE conference call, where they admitted it was delayed but still coming. In the same conference call, they defend going TV as opposed to an internet channel by suggesting that revenues are still heavily sided with network television.

The delay has not fully been explained, nor likely will we ever get the full story. The going theory is that they are having trouble negotiating terms with network distributors. Essentially, it’s a money issue. But I hope it’s something more than details. I hope it’s that they’re not sure they’re headed in the right direction with this thing. Because they aren’t.

I imagine the envisioned plan is something like Turner Classic Movies: a wonderful, curated selection of classic films from the beginning of the art form, appreciated by all. TCM is a vanity project in a sense: commercial-free classic movies, free to watch by anyone with a somewhat decent cable package. It’s nostalgia done right, which is probably at least half of WWE’s intent with the network.

The problem with cable is that nobody wants it

People hate cable. It’s expensive. It’s clunky. There are too many channels. What you’d like to watch is never on when you want to watch it. They’ll sell you a DVR to fix that last problem, but then you’re stuck with an even more expensive and even clunkier box to deal with. The experience is terrible.

WWE actually already has a channel. It’s called WWE Classics on Demand, and it’s actually kind of cool. They curate 20–30 hours a month of content, and you pick from a menu to watch it. It costs about $8 a month and is totally worth it. But Classics on Demand hasn’t become a cornerstone of the company, so why would they think a channel that doesn’t have on-demand functionality perform better? Isn’t a stream of content worse than a menu of content? Wouldn’t a paying customer (and you would have to pay extra for this network channel, naturally) prefer to choose what they’d like to watch, rather than watch whatever’s on?

Perhaps I’m reading the temperature of the modern living room incorrectly. Perhaps the majority of people have no problem shelling over $100 per month for premium cable packages and DVRs, and perhaps a huge number of people haven’t switched to downloading (legally or illegally) their content. Maybe people still prefer their Time Warner box to an Xbox 360. But even if that’s true today, you’d be an idiot to think it’s still going to be true in a few years.

Xbox, PS3, Wii, Roku, Apple TV: Apps on television

Increasingly, the box underneath a TV is not one connected to a cable service, but rather a multimedia gaming or streaming service. The five boxes mentioned in the title have collectively sold in the hundreds of millions. They all connect to Netflix at the very least, and, in the case of the Xbox 360, new content apps are being added regularly. With the Roku box, all you need to know is the address of a content provider and you can receive their network. All of them play content you downloaded off the internet, and some of them rival cable packages for available TV, movies, and music.

There is a UFC app on the Xbox, but not a WWE one. Thousands of TNA episodes and PPVs are available on any number of these devices, but scant few WWE shows. Live sports streaming is available on the Apple TV, Xbox, and others. Where is WWE? They have woefully fallen behind. Announcing compatible devices for online networks of content is what everyone else is doing. WWE is ten years behind.

Better, different, or worse

Right now, WWE’s available content is without doubt worse than any of its competitors (in this case, I consider any major content provider a competitor). The WWE Network would be a different move, sure, but it would undoubtedly be a worse experience. It would not only go against the grain of how people are increasingly devouring content, but it would essentially lock out the youth market (the kids don’t care about cable). Since WWE is unlikely to do something like the UFC app, or the TNA route of making its content available across every single store (if you buy a show on the xbox, you can’t watch it on your iPad, and vice versa), what can they do? Or, better yet (and more fun), what would I like them to do?

A reasonable network plan

A WWE Account

First things first, WWE should set up a username/password system for everyone interested. This account will work everywhere on their site, from wweshop.com, to ticket purchasing, comments, and even merchandise booths at live arenas. The obvious thing to do here is set up some kind of points system (Nintento Points-style) where buying stuff gives you a macguffin that makes you buy more stuff.

Apps

There should be a WWE app on every popular device. iOS, Android, Xbox, Windows 8, etc., You can login to this app to get content, buy stuff, and be part of the WWE Universe. Hell, call it “The WWE Universe.” It’s right there. Define it.

Buy once, watch everywhere

If you buy a WWE PPV on itunes, you can watch it on any iOS device. You can watch it however many times you like, and it never goes away. You should be able to do that with your WWE account. If you really want to own Money in the Bank 2011, you should be able to give them money and trust that that file is available, rewatchable, and downloadable (at least, in the app) for a long, long time.

A curated monthly buffet

I’m putting this here for selfish reasons, because I really like Classics on Demand. I think the concept and curation is very well-done, but it’s suffocated on cable. It sits up on channel 397 for me, which isn’t a place I regularly surf. It can’t give me notifications, and I can’t watch it anywhere but my TV. Throw it in the app, charge me the same price, and let me cache for offline viewing.

PPV for less

In-store, Apple sold Aperture, its pro photo software, for $199. In the Mac App Store, it’s $79. Why is it less? Because it’s a much easier purchase. To buy Aperture in the store, you have to physically show up to a store (that they have to rent, heat, and light), buy a box (that had to be designed, printed, assembled, packaged, and shipped), go home, insert a DVD into your Mac, install the software, and enter a serial number (that had to be encrypted and databased). To buy Aperture in the Mac App Store, you hit a button and input your password. The cost of the Mac App Store isn’t nothing, but it’s conveniently covered under the 30% take that Apple gets off each purchase.

With less cruft comes greater sales, and with greater sales comes greater margins. Lowering the price means more people buy it, but lowering the price while lowering your own investment means making more money in volume. Buying a PPV is somewhat easy today if you have cable, but you still need cable. How is this possible in 2012? How many more PPV events would WWE sell if they cut the price by half and made it ubiquitous across every device? Call it $19.99 for most PPVs, and $29.99 for Wrestlemania. Put it on the iPad, and people will buy the hell out of it.

With an account, one could also subscribe to PPV events in bulk. Make it $149 for the year. PPV is expensive because cable deals are expensive. Remove those, and WWE could set their own price.

An ongoing stream

If all these price ideas sound complicated, then you’re probably in the pocket of people who just plain prefer to have content shown to them instead of choosing one’s own level of involvement. That’s fine. I absolutely believe there’s a place for a stream, but it shouldn’t be confined to TV. Make the stream a channel you click on in the app or the website, make it free, and limit it to a small rotation of things. People who a) aren’t going to pay for things, and b) don’t care about choice are perfect for this, because a) they wouldn’t pay for something that’s only slightly better, and b) they don’t care about choice. Brand it with the Vintage Collection (or, better yet, just stream Vintage Collecton) set it, and forget it.

My lack of faith is disturbing

A lot of my hopes for WWE distribution are up there, and it’s a path I think would work for them worldwide. But I don’t actually believe they’ll do any of it. They used to be so good at being at the forefront of technology. WWE had VHS collections before TV shows. WWE had PPV before movies. They were on the DVD bandwagon before most people owned DVD players. They’ve experimented with online video, and I always thought they’d figure it out. But with them trying to get cable TV, I don’t really believe they think the “internet” is a viable distribution platform. It’s a shame, because I honestly believe that it’s going to be the only distribution platform sooner than people think. WWE has the might, brand power, and nerdy, obsessed fan base capable of pulling something like this off. I just really wish they would.