ESPNs major gamble on WWE content may already be backfiring.
During Wrestling Observer Radio, Meltzer broke down ESPN Unlimiteds performance after WWE joined the $325 million-per-year streaming partnership. While the service saw a surge during WrestlePalooza, it wasnt nearly enough to justify the deals massive price tag.
According to Meltzer, the platform reached 2.1 million total subscribers, but the true value to ESPN hinges on whos paying for WWE. The key weekendWrestlePaloozareportedly added around 100,000 to 125,000 subscribers, but Meltzer did the math and it doesnt look good.
Meltzer pointed out that ESPN is betting big on long-term growth, but that strategy might cost them heavily in the short run. He said most of the 30 million existing ESPN subscribers are getting the service for free through cable providers, which means the real revenue is only coming from a small portion of WWE diehards.
When asked how WWEs value compares to other mega sports deals, Meltzer didnt hold back.
While the idea of WWE helping launch premium sports platforms sounds exciting on paper, Meltzer says the real winners are WWE executives cashing those checksnot necessarily the platforms footing the bill.
Whether ESPN can turn things around or not, one thing is clear: WrestlePalooza may have brought in short-term hype, but it didnt bring enough paying customers to make the numbers make sense.
ESPNs faith in WWE is costing them more than just rights feesits turning into a brutal lesson in subscription economics.
Please credit Ringside News if you use the above transcript in your publication.
Are you subscribing to ESPN after WWE moved it's content from Peacock? Please share your thoughts and feedback in the comment section below.
