WWE's potential plans might help bring major increase in revenue
WWE has been announcing record-breaking amounts of revenue during each quarter. However, the company appears to have a new strategy to maximize revenues even further.
The company made upwards of $10 million last month through the sponsorship fees for WrestleMania 38. However, when it comes to their total sponsorship fees, analysts feel that WWE remains undervalued.
According to a report by CNBC, sponsorship consulting firm IEG has noticed the potential for the company to attract more revenue. World Wrestling Entertainment Inc's CFO Frank Riddick III also said the company would be making sponsorship a priority this year.
The report states that while the company is behind the likes of UFC in overall popularity, their fans are more likely to consume brands that sponsor the former. 67% of WWE fans are likely to purchase brands associated with the company, ahead of the 55% average for the 11 biggest sports leagues in the United States.
WWE records its highest annual revenue ever, adjusted for inflation, just short of $1 billion. https://t.co/mSvoxoYPaW
Peter Latz, IEG's global managing director, felt that it spells out potential and more opportunities for the company. He also said that the company could make over $100 million in annual sponsorship revenue, compared to their annual $35 million.
Outside sponsorship, WWE is doing well in the streaming world
While WWE's strategy of concentrating on sponsorship might help increase overall revenue, they are already doing things right in the streaming world. The company has a deal with Hulu in place for the next-day streaming of RAW and SmackDown. Meanwhile, Peacock subscribers can watch the shows 30 days after it first airs.
The deal with Hulu is expiring this year, but Nick Khan has his eyes already set on future deals. Khan talked about Netflix as a possibility.
“It’s just a matter of time before Netflix goes with live."
WWE reports $333.4 million in revenue for Q1 2022, operating income of $92.4 million, adjusted OIBDA of $111.7 million, net income of $66.1 million, and an EPS of $0.77.
corporate.wwe.com/investors/news… https://t.co/1amQ6RGRt9
Many believe that Netflix might not be interested in the deal since the company has an agreement with Peacock. However, according to Lee Berke, CEO of LHB Sports, if Netflix strikes a deal for the company's streaming rights, then it would be an aggressive one for all their major live events - similar to what NBCUniversal currently holds with Peacock.
The upcoming months might see further developments regarding streaming rights for the company's content. This could potentially be a major boost to their revenue in addition to their existing deals.