WWE Network…why?

Hey Scott, 
Thought about the WWE Network. Assuming Raw and Smackdown remain on regular cable TV, it seems like the only content draws for a WWE Network would be 1) Non-Mania PPVs 2) On-demand complete archive 3) Non-wrestling original programming, like say "Legend's House".

If that's the case, it really comes down to the PPVs being the ONLY reason they'll get anyone to subscribe to this thing. I mean, the #3 content is completely worthless, as possibly zero people would pay to see that stuff. As for the archive, they've had the WWE Classics service available on both cable AND online for years, and reports are that they maxed out at around 75-100,000 subscribers. Sure they way underhyped it, and if they actually put ALL of the archives on there available totally on-demand, then yeah it'd get more buys, but I'm thinking not too many more.

So that leaves the monthly PPVs as the only thing that will draw people to subscribe. So that said, aren't they just basically changing the price of their PPVs and selling them directly? Am I missing something or is that really what's going on? I mean, it comes down to them deciding "Well if we sell our PPVs for $10 a month rather than $65 a month, more people will buy them and we'll make more money. And we'll throw in the archive for free." What am I missing here? Because if the Network model doesn't include advertiser revenue or the cable companies paying WWE for the rights to carrying the Network, the network is actually just a subscription-based price adjustment for the pay-per-views.


Yeah, the feeling going in was that going digital would offset the costs associated with a normal cable network, but Meltzer was saying this morning that costs will actually be MORE for the digital sub because they have to set up all the infrastructure themselves without the cable companies eating some of the setup costs. However, if they make it through the first year, they stand to make more in the long run.  

Honestly, it's a crapshoot that they HAVE to take.  It might fail, but it's the way of the future and they can't depend on USA forever.