Streaming Smackdown: WWE And Peacock Join Forces

Big news #1: Peacock has signed exclusive streaming rights with World Wrestling Entertainment (WWE) through 2024.

Key details for Peacock/WWE deal:
1) $1B over 5-years
2) WWE Network is shutting down and moving 1.6M subscribers (1.2M in the U.S.) over to Peacock
3) 17K hours of content

Quote from Rick Cordella – EVP and CRO @ Peacock:
“WWE Network is a transformative addition to the platform and complements Peacock’s massive catalog of iconic movies and shows, as well as the best live news and sports, from NBCUniversal and beyond.”

Monthly pricing comparison between Peacock and WWE Network:
1) Peacock Premium (includes WWE) – $5
2) WWE Network – $10

The verdict from Lucas Quagliata/Michael Scott: A “win-win-win” situation.

Big news #2: NBCUniversal announced that NBC Sports Network (NBCSN) is shutting down at the end of 2021.

Big question #1: What happens to sports programming on NBCSN?

Quick answer: Sports content such as the NHL, EPL, and NASCAR are moving to USA Networks.

Big question #2: Why are they doing this?

Quick answer: NBCUniversal is trying to accomplish two primary goals.

Goal #1: Drive subscribers to Peacock.

Self-reported usage of Peacock (ad-supported) according to YouGov:
1) Aug-20 – 6%
2) Sep-20 – 7%
3) Oct-20 – 9%
4) Nov-20 – 10%

Goal #2: Reduce costs (fewer channels) while bolstering the value proposition for USA Network.

Quick math for NBC Sports Network subscriber revenue:
1) 76.6M subscribers
2) $0.42/month/subscriber
3) $32M/month
4) $386M/year

Quick math for USA Network subscriber revenue:
1) 86.2M subscribers
2) $1.65/month/subscriber
3) $142M/month
4) $1.7B/year

Average revenue per subscriber (YoY growth) for regional sports networks according to S&P Market Intelligence:
1) 2015 – $2.50 (↑ 14%)
2) 2016 – $2.60 (↑ 4%)
3) 2017 – $2.90 (↑ 12%)
4) 2018 – $3.10 (↑ 7%)
5) 2019 – $3.30 (↑ 6%)
6) 2020P – $2.60 (↓ 21%)
7) 2021P – $3.70 (↑ 42%)
8) 2022P – $4.00 (↑ 8%)
9) 2023P – $4.30 (↑ 8%)
10) 2024P – $4.50 (↑ 5%)