Sources: WWE Planning Pay Cable Channel After Commercial Channel Plans Fizzle

WWE is “focusing its efforts on creating an HBO-like pay cable channel that consumers would order on an individual basis and that would be commercial-free,” according to sources cited by Joe Flint of the L.A. TIMES. The company is “switching gears” after it considered building “a broadly distributed commercial channel with hopes of getting a subscription fee in the neighborhood of 20 cents per month per subscriber.” There were "concerns about the amount of WWE content already available limiting the growth potential of a stand-alone commercial network,” as well as questions about space limitations on "most cable and satellite systems." If WWE goes forward with a premium channel, it would "likely place some or most of its pay-per-view events ... on the network to entice people to sign up.” That move “does not mean WWE would get out of its lucrative pay-per-view business," as "Wrestlemania" would “likely remain strictly" available on PPV. The price WWE would ask for a premium channel would be higher than $10 per month and “perhaps as much as” $15, which would be “cheaper than buying all or even half of the pay-per-view events.” Besides PPV events, WWE also would “create some new shows that would complement its content on other channels and use its library fare as well.” PAA Research Founder & CEO Brad Safalow said that he “anticipates a price of $14.95 for the channel and that WWE should be able to get 400,000 subscribers out of the gate and almost double that in two years.” Flint notes whether pay-TV distributors "will be on board remains to be seen” (L.A. TIMES, 9/11).