Aimee
The success of the WWE Network is contingent on attracting new subscribers to the WWE Network as well as retaining existing customers.
Beginning Sunday, August 24, customers who signed up on WWE Network’s launch day will eclipse their initial six-month commitment period.
Thus far WWE executives have been unwilling to share internal projections on WWE Network subscriber churn. We have no idea how many subscribers will choose to stick with the WWE Network and how many will let their subscriptions lapse.
On the second-quarter conference call, Chief Financial Officer (CFO) George Barrios would not answer analyst Mike Hickey’s question on what percentage of subscribers had signed up for auto-renewal.
Many were surprised by the revelation in the recent financial results that 128,000 WWE Network subscribers had already cancelled during the April to June period. Executives classified this cancellation activity as the “payment billing driven element of churn.”
This leaves WWE in a tough spot. While the company has accelerated the launch of the global WWE Network, will it be able to attract enough new subscribers to offset the customers that are leaving due to non-renewal and payment issues?
Will changes to the WWE Network service make the project a successful endeavor?
