Dave Meltzer noted on the latest episode of Wrestling Observer Radio that the ESPN App has reached 2.1 million subscribers in its first month since launch. He mentioned that during WrestlePalooza weekend, the app gained 175,000 subscribers. The weekend before the event, it added 80,000 subscribers, while the weekend after, there were 50,000 new subscribers.
Meltzer highlighted that the fourth weekend following the app’s launch saw a greater number of new subscribers than the third weekend, confirming that the WWE PLE deal positively impacted the ESPN App's subscriber base. He estimated that around 95,000 to 125,000 people subscribed to the ESPN App specifically for WWE content during that weekend.
He went on to explain that the value of this deal isn't based on the revenue ESPN receives from its existing 30 million subscribers due to their current cable or satellite agreements. ESPN would have that revenue regardless of the WWE partnership, which doesn't add any value since those subscribers were already on board. The true value of the WWE deal, worth $325 million a year, is linked to the number of new subscribers who stay subscribed for an extended period—ideally around a year—because of WWE.
Meltzer suggested that if ESPN App viewership numbers remain consistent with the first month, the value of the WWE deal could amount to approximately $35 million a year. He remarked that companies making significant investments in streaming, like ESPN with WWE, are currently losing money on these deals. However, ESPN signed the agreement with WWE hoping to reach as many as 50 million subscribers down the line, each paying about $30 a month for the Unlimited tier.
Additionally, Meltzer pointed out that the revenue generated from WWE on the new ESPN App is not close to the value of what ESPN paid for the rights to stream WWE premium live events. He noted that WWE PLEs may still hold more value than the UFC streaming deal with Paramount+, valued at $1.1 billion, which he predicted will be a significant financial loss. He concluded that while it benefits companies like WWE and other sports leagues to secure lucrative deals that attract streaming services, the streaming providers are currently losing a lot of money in this business.
While the ESPN App is the streaming home for WWE PLEs in the U.S., Netflix continues to air the shows internationally. ESPN acquired the rights to stream WWE PLEs earlier this year, and the five-year deal began earlier than planned with WrestlePalooza. WWE had reportedly fulfilled its obligations to NBCUniversal’s Peacock regarding premium live events after splitting WrestleMania and SummerSlam into two nights.
