This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Here's Why the WWE Network Is a 'Ground Breaking Event'

Updated from 8:22 a.m. to include news that the WWE Network is coming to Apple TV.

NEW YORK (TheStreet) -- The next big thing for World Wrestling Entertainment (WWE), its investors and the wrestling world in general, is the launch of the WWE Network. Judging by the reaction on social media, the Web, and the company's own research, it may wind up being bigger than Hulk Hogan's 24" biceps.

First announced in January at the Consumer Electronics Show, the WWE Network is an over-the-top (OTT) service, akin to Netflix (NFLX), except purely for wrestling fans. The service, which goes live this morning at 9 a.m., costs $9.99 per month, and includes all of the company's pay-per-views, including WrestleMania, set to be hosted by Hogan. The Network will be available on the WWE app, which already has more than 10 million downloads, according to a company press release.

On the fourth-quarter earnings call, CFO George Barrios noted that the company's OIBDA (operating income before depreciation and amortization) would fluctuate, due to the launch of the Network, as well as the eventual television deal.

"For the first quarter of 2014, we expect net income to decline on a year-over-year basis by $15 million to $18 million resulting in net loss of $12 million to $15 million the first quarter," Barrios said on the call. 

WWE's deal with Comcast (CMCSA) subsidiary NBCUniversal recently had its exclusive negotiating-window expire, with its popular Raw, Smackdown and Main Event shows now up for grabs in the free market, as live content continues to see a bump in rates. WWE recently renewed its deal in the United Kingdom with cable provider BSkyB, of which 21st Century Fox (FOXA) owns a stake.

There's been a lot of attention paid to the negotiations with NBCUniversal, as the company is trying to position itself as live content, similar to MLB, NFL, and the NBA, all of which have very lucrative television deals. "There's a very frothy market for live entertainment," Barrios said in an interview with TheStreet last week. "NBCU remains very committed to live entertainment. We talked in the exclusive window, but we couldn't come to a deal that we both felt comfortable with."

WWE is free to shop its programming to other content companies, but NBCUniversal has a limited right to match any offer WWE receives.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs