Tuesday, May 22, 2018

JPMorgan Fireside Chat 5/15/18 (George Barrios w/ JPMorgan Analyst David Karnovsky)

JPMorgan Fireside Chat 5/15/18
George Barrios w/ JPMorgan Analyst David Karnovsky
George Barrios at 46th Annual JP Morgan Global Technology, Media and Communications Conference
May 15, 2018

TRANSCRIPT
George Barrios co-president of World Wrestling Entertainment

Wanting start things off sure so just we're about some context

give an overview of where we are in the business today so
last year we had record revenues of 800 million dollars
also record profitability record

revenues from outside the US - we're about 30 percent of the revenues now
come from when you think of WWE about two-thirds of that revenue is media and I'll talk
about that a little bit more detail

about 20 percent is selling tickets to events and about 15% is monetizing through consumer products the other prism into the revenue as I mentioned before is by geography

about 70% of the revenue inside the US and about 30% outside the US

when you look at the media we we talk a lot about kind of our the way we think about the media
ecosystem and we create about 1,500 hours of content and put it on three different platforms and we don't put the same content on multiple platforms who really are very very focused on tiering the content

the three platforms are:
  1. paid television ad supported video
  2. on-demand primarily through the third party platforms like YouTube and Facebook
  3. our own direct to consumer network

  1. PAY TV
on the paid TV side we put our core in-ring weekly content
It's the most important content we create
it's five hours of live event content 52 weeks a year

so unlike the sports leagues there is no off season

in the United States you'd see Raw and SmackDown on USA
It's they're the number one and number two shows on the number one cable network

and the United's in the United States we're also one of the most watched pieces of live content
in the u.s. In fact second last year behind the the NFL

  1. ON DEMAND
then you have AVOD work platforms we create about 600 hours just for that it's clips of some of the long-form but also a lot of original content

for example we have a gaming channel up up down down that will create about 200 hours of content just for that we have a total diva channel and obviously the core WWE channel on YouTube which has about 25 million subscribers well

a lot of people don't know WWE is the number two channel in the history of YouTube so number one is T series which is a Bollywood focused movie channel on YouTube but we're the
number 2 channel as measured by YouTube in the history of YouTube

we're also the number one sports channel in the history of YouTube so last year across all the
AVOD platforms we did about 22 billion video views so that's the second platform

  1. WWE NETWORK

the third platform
if you think of Raw and SmackDown as the regular season that sits in the paid TV bundle
our direct-to-consumer service $9.99 a month available around the world
will have our playoffs no 12 to 14 special live events
including our Superbowl (WrestleMania) that happened a few weeks ago in New Orleans
will create new content for our biggest fans

it could be documentaries
it could be animation using our IP
we've done reality series again for our biggest fans
you're also able to view the next generation of WWE Superstars
so we have a training facility Performance Center in Orlando with about a hundred talent
training to be the next generation of WWE stars

they put on events we capture those events and we provide them on the direct-to-consumer and then we also use it as a place to bring the entirety of our library including what resides on the other two platforms eventually we window and

I mentioned that we tier the content but eventually all the content ends up on the direct-to-consumer so it is the one place for everything WWE

$9.99 a month were the second largest sports AVOD service in the world behind MLB baseball with around 2 million subscribers which we announced recently so that's the media series

really live event content pay TV

engage next generation fans 24/7

storytelling on the AVOD platforms and
then for our most ardent fans and that's
important it's not for every fan because it's an additional price

we're asking you to pay but for our most passionate fans of the direct-to-consumer service on the live event side obviously incredibly important because it creates the media that I just monetize so

we do about almost 600 events around the world including our Developmental League we create media from about 130 or 140 of those events and again that forms the core asset that we monetize in the media segments that I talked about

and then as I mentioned also in consumer products the primary categories being apparel toys and video game

interesting fact: last year WWE was the number one action figure in the United States
so more than Marvel more than Star Wars

as we look to the future we tell people we feel really good about all our businesses but we really think the growth comes in the media business

so whether it's continuing to monetize the core content Raw and SmackDown continuing to grow or direct the consumer service and also then continuing to deepen our position
on the avod platforms

both third party and our owned and operated that's where we see the growth

I mentioned the monetization that 30% of the revenue comes from outside the US 70 percent of
all the video consumption I talked about when you add up all those platforms 70% of all the time spent on WWE video happens outside the US

30 percent monetization
70 percent engagement

We think over the time that gap closes as because a lot of where that consumption is happening is in countries like India or Southeast Asia or the Middle East and so as those economies evolve GDP grows grows advertising tends to follow that

subscription revenue tends to follow that and the whole M&E sector in the marketplace grows and if we can keep doing what we do which is entertaining people and engaging them we should do well

the last piece I'll touch on is kind of another prism to look into the business that I just talked about is this digital slow social and directed consumer transformation touching us

I'm talking about the media but just to put in context back in 2010 company did about 470 million dollars in revenue about 10% of that was on digital platforms and about 25% of that
was direct to consumer

today a much bigger company 800 million in revenue roughly 40% is coming on digital platforms and just over 50% is direct to consumer so there's been a very pointed strategy to grow the digital social and direct-to-consumer businesses at WWE

Q&A

Q: OK, Great. I guess I'll start high-level and then.
George the media world has changed pretty substantially since 2014 when you last renewed your major rights deals how do you think WWE in its place in the content ecosystem have changed since then

A: yeah I mean I think we we've continued to deliver and its market by market
so it's hard to just give one answer to globally
we have partners all around the world
so we're on smackdown -
that's available here with NBC Universal it's available in the UK with Sky, with Sony in India, Fox in Latin America, OSN and NBC in the Middle East so
the answer depends geography by geography

in the US we tend to believe that people who can aggregate live eyeballs are valuable
as you mentioned we've announced that we expect to and we've said
we expect to announce our u.s. distribution strategy sometime between May and September so time will tell
it's a small market with a small number of buyers and so we'll see where that goes

Q: your current contract with NBC Universal domestically distributes Raw and SmackDown for a five-year period and I think it includes digital rights you know looking ahead do you see the need
for a similar structure meaning
could WWE do a longer-term deal or could you even see splitting the TV and digital rights

A: yeah the time obviously is inexorably linked with the economics
the length of the deal as well as how you view the kind of the ecosystem changing so
we're we're flexible within certain time frames
We wouldn't do probably a 20-year deal but we would be comfortable doing longer than five
And as far as the the structure of the rights ultimately David the market is the one that determines
whether you can do that or not I think  the the live content that does
it to the greatest degree is the NFL and it's because it's by far the single largest by far single largest SAR aggregator live eyeballs in the US so they're able to do that others less so so in essence you have to let the market and obviously from a Content owner the more you can slice the rights the more economically beneficial although we are we take great care in tiering the content in a way that kind of rises all boats so we're really cognizant about this
why I mentioned that before early on that we try to be really strategic about what content is in pay TV what's on a boat and what's direct-to-consumer because in our view with our IP if we were just to put everything everywhere we're not sure that's healthy for the ecosystem
So we've got to be thoughtful about that when you think about the rights but ultimately the market determines whether you're able to do that just to follow on

Q:  I mean the you mentioned the NFL you know the NFL and other sports leagues  part of the reason they've been able to get higher rights views as they sell their content to multiple partners  could WWE conceivably split Raw and SmackDown between different companies and and what are the challenges to doing something like that I know you've you've had it on SyFi and USA in the past but that was all on the NBC umbrella yeah I mean again

market determines it on that opportunity
from our end if if the question were or
do you guys think that's an issue to
split it right yeah we don't and we have
done it before we think we're
pretty good at promoting and moving our
viewers kind of from one platform to
another seven or eight years ago it was
only from one network to another network
which changed dramatically I mean it's a
sea change it can we can't overemphasize
it is the nature of social and digital
and helping do that so we've been able
to do it before we would feel even more
comfortable doing it today just because
we we have a direct connection with all
our fans which we did not have seven or
eight years ago so our ability to do
that with its we think it would
be if it made sense economically if
their partners interested if we
comfortable with the partners in
question kind of operationally we don't
see an issue doing that it we
recently saw UFC sign a deal with ESPN
plus which is a platform that
did not exist even a few months ago it's
only part of the UFC package but what
read through if any do you see
for WWE again I'm not gonna talk about
any specific partners I think the
interesting
thing is like you mentioned the he said
before the ecosystem is changing
dramatically just said here's a
platform that didn't increase a few
months ago didn't exist a few months ago
obviously Disney's been very vocal about
their focus now on direct-to-consumer so
this in essence would be their first
major for a so as a rights holder an IP
owner it's I think makes sense
to everyone the more outlets there are
generally the better for you so we wish
them success obviously as a
direct-to-consumer someone who's been
doing direct-to-consumer now video for
four years were well versed in that
business so we're also looking at ESPN
Plus specifically as a product just to
learn from it we think the
Disney is incredibly smart
everything they do tends to be done well
so and I think that I'm a subscriber to
the ESPN Plus product I think it's great
so just internally operationally we're
seeing what we can learn from it got it
that deal I guess when you
think about it while lucrative on a on a
per fight basis probably the flip side
is that you have seen might be
distributing potentially to a smaller
audience at least relative to TV you
know when you think about your own
content how do you balance
potentially lucrative fees from digital
against things like audience reach and
engagement yeah we talked about that
whole issue of what's the
purpose of a piece of content and where
does it go it's kind of this delicate
balance it's probably the most difficult
strategic question that we're always
wrestling with internally so when we
create miz and maurice or total divas
what should that go on direct the
consumer should that be on the avon
platform should it be on paid TV and
ultimately you're making that decision
by looking at four things number one in
terms of what's the content main goal is
it to bring in new fans so fans you
don't have today is it to deepen
engagement with your current fans is it
to help monetize other parts of your
business so promotion or is it direct
monetization all right so those are the
four things you're always thinking
through so when you ask the question
about the trade-off of for ESPN plus you
know they're early days you're gonna be
trading off distribution the economics
at least from what I what we saw you
know and again we only saw what was
public seen
pretty good so I'm sure UFC is thinking
through those trade-offs it's what we do
so long-winded way of saying would we
consider making trade-offs like that one
versus the other yeah we do that all the
time and so but it's got to work in the
hole so if you're going to in one
example lose distribution to gain more
economics you have to have a strategy
around how am I gonna engage fans that I
may not be engaging now that again
that's why the social and digital for us
is so important six seven eight
years ago the answer would have been
don't know how I'm going to do that
today that today we know how to do that
so that's why it's really important it
gives you more flexibility just
sticking with social and digital you you
recently wrapped up the mix match
challenge on Facebook now how'd this
series fare relative your expectation
and do you see potential for producing
new shows for the watch tab or
could you even utilize some of your you
know existing network programming that
had that spot after Smackdown like 2 or
5 live yeah so yeah it's funny cuz
everybody asks and it's a natural
question so how'd it do versus your
expectations and of course you're doing
something for the first time ever so
it's hard to have any expectations
around it and I think that goes for
Facebook thing if you ask them because
we did what what would make
this successful for you guys because
obviously that that's a really important
thing for us and I think they're still
determining what success is we
know what the metric is it's time so
it's how many people are you reaching
and how much time are they spending I
mean that's easy that's what we measure
and we're kind of super intense about
measuring time and making sure we have
our arms around that so having said that
we've taken
Facebook's lead and they seem to be
really happy with with how mix-matched
challenge was or how it performs so in
in turn we are - we learned we learned
some things we learned some things
around the scheduling we learned some
things around the promotion both within
Facebook and externally and we still
kind of the the viewership get impacted
by different different things
we're trying I think we're in early days
I remember someone in early meeting with
Facebook around mix-matched challenge
said look we our goal is to reinvent TV
great TV which means
the viewership experience so I don't
think we've done that with mix-matched
challenge I think we did some
interesting things on how we embedded
the social feed and in its own but I
think there's a real opportunity to kind
of push the envelope over time and do
things and if facebook we're interested
in the future we would we like
those guys and girls so I think it was
reported that there there might have
been a revenue share element to the deal
do kind of what the ad load was
that Facebook ended up showing against
the content I think it was after the
first few matches yeah it was so it was
more structured as a rights deal right
not a not a rev share so we don't have a
ton of visibility into the ad load kind
of similar with YouTube you can get some
understanding but again our
understanding from the Facebook team was
that they were happy with how things
went okay outside the US you
know you're set to renew deals in the UK
in India for domestic investors
who are less familiar with those markets
kind of the same as my first
question how do you see WWE
programming is position to the
last time you renewed those deals in
2014
yeah it's you they're different
markets so UK a little bit more similar
to the US and that it's it's going
through this transformation around
multiple platforms and kind of the
incumbent platforms are dealing with
that transformation now maybe not to the
extent that you you talk about it in the
US but there's still elements of that
historically we've been with Sky for
about 25 years so they're a long time
partner a great partner we're fairly
tiered up in the sky platform so the
consumers actually got has to pay quite
a bit to get Raw and SmackDown it's
probably the place in the world will
them were the most tiered obviously one
of the things that's happened over the
last 12 months or so is that Amazon has
started bidding for and has acquired
exclusive rights and not just digital
rights but actually exclusive rights to
the content that's something new
in the media sector and they've done it
I think now they've three different
packages from were correct in the UK
specifically so that'll that's it's kind
of an interesting dynamic so similar to
we're not going to talk about
what we're expecting on the right side
what we've said is we expect to announce
an hour distribution strategy towards
the end of this year so after the we
think it'll we'll probably on sit after
the US and then in India very very
different market obviously and we've
been in India over 20 years currently
are with Sony has our rights I think the
really interesting thing going on in
India over the last 12 months as the
price of broadband has plummeted
so Reliance Geo mobile broadband
provider is in essence disrupted that
market with broadband pricing which
that's now created this huge new
consumption wave on mobile devices so
you'll hear people in India we were just
there talk about the next
billion users in the country maybe
closer to half a billion coming on those
devices that had then has led Reliance
Geo and some of the other mobile
providers to begin acquiring content so
that's new in that market place so
that's an interesting dynamic for for us
as a rights holder wrestling WWE is one
of the most viewed content in India so
IPL is by far the largest if
you have if you're not familiar with
India would be the analog would be the
NFL here
Kabaddi which is another sport does well
and so but here over the last few years
we've been we've either been the second
or third most watched property in India
so we we do well and gave me it's our
largest country when I talk about those
media platforms I mentioned
time we'll do five to six billion hours
of total time spent with our content our
largest market not per capita but in
total is India so it's an important
market for us we've done well so far and
we'll say we expect to announce the
distribution plans there somewhere in
the first half of next year and does
that broadband dynamic in India
lower pricing open up guys like
Facebook or Amazon or even hot star to
kind of come in and
and be more aggressive with
content also yeah look we think so I
think if you look at Facebook's activity
in terms of trying to acquire live
writes the most aggressive bid that I'm
aware of was in India so and it was for
digital rights it wasn't for exclusive
rights but they bid I think six hundred
and fifty million over five years for
the IPL rights and two months the best
of my knowledge we had never seen that
large a bid for any type of content from
Facebook so it seemed to show that they
were serious but you mentioned some of
the other big players they're like hot
star which an indigenous player and
YouTube of course so it it
seems like these new entrants are
becoming more aggressive in competing
it's just sticking with international I
want to ask you about the the Saudi deal
and maybe you could provide some history
for us how did you first kind
of develop a presence in that market and
then how do you grow that to the point
where you're staging a tremendous
production like like the greatest Royal
Rumble yeah it's interesting
because everything without context seems
like a one-off seven or eight
years ago we were talking a lot about
our focus on the social and digital
platforms and at the time because we
were in the middle of our transformation
people say well you're talking a lot
about it because you want to distract
people from how the business is doing
because we're going through this pretty
big transformation we said no not really
we're talking a lot about it because
it's the most important thing we're
working on internally and I think the
story I'll tell is I do remember the day
that Vince kind of brought his top team
into small conference room adjacent to
his office and he said hey starting this
Friday every week I need everyone in
this room to write me a one-page summary
of what you did this week to drive
social and digital engagement and in
every function in the business and it
was this notion that this was going to
be transformational we couldn't dabble
in it we could just spend some time
working on it or delegate it to someone
had to be
the absolute mission of everyone in the
company so you fast forward seven or
eight years later in case you don't know
Saudi Arabia is the number one country
per capita for YouTube consumption so it
is a heavy user of YouTube it's
something we've been looking at and
watching for multiple years we have a
great partner in the Middle East a paid
TV partner osm a great partner but we
don't have great free-to-air
distribution in the Middle East so broad
distribution so our vehicle to build and
engage the fan base in the Middle East
at the biggest scale has been YouTube
and Facebook so then you fast forward
and vision 2030 MBS is vision for Saudi
Arabia comes about a nap there
entertaining as part of that vision
sports as part of that vision so as
they're looking around and saying well
who are the biggest sports properties in
Saudi Arabia guess who rises to the top
it's WWE and then in essence that leads
to a discussion which then leads to a
10-year partnership which then leads to
doing the first time we've ever done a
WrestleMania scale production anywhere
other than WrestleMania let alone
outside the US let alone in a place with
who has never done that type of
production so it was incredible
we in essence brought every piece of
equipment and every piece of talent to
operate that equipment into the country
because it had never been done before
they've done large event soccer events
and so on but it don't have doesn't have
the production value that you'd have as
at a WrestleMania scale and I always
tell people at least for us I still get
chills when you if you go on to our
network app that's where the greatest
Royal Rumble is available outside the
Middle East and you see it's a
sold-out King Abdullah Stadium so
40-plus thousand people kind of having
what seems like the time of
their life enjoying WWE content and to
be able to put smiles on people's faces
in these different parts of the world
with different cultural mores and is you
know it's we don't take that for granted
so it was really exciting so that was
the the context really was something
that we can seven or eight years ago and
this is just one manifestation of that
social and digital strategy there
fruit and do you see an opportunity to
kind of run that digital in social
PlayBook and other markets like
China potentially yeah we're doing that
today
yeah China China is interesting it's
probably one of my personal biggest
regrets is that we didn't we weren't as
aggressive on the indigenous social and
digital platforms in China seven or
eight years ago as we were on the global
platforms and part of that was just you
had to make trade-offs it wasn't that we
didn't think about it it's just
you're making trade-offs and making
choices we've now for about the last
four three or four years ever since we
signed the our exclusive deal with pptv
in the market had really been building
up the social digital art social digital
talent in the market to try and grow the
same kind of scale as we've done
elsewhere so we're early days in some
ways relatively speaking in China but
yet we're but other other than that were
it's a little bit earlier the social
digital playbook is being played out
around the world today what we've said
is as we can what we will continue to do
is invest in those so and that means
more content to creating more hours and
it also means being more aggressive and
localizing the content more languages
and so on so we will continue to do that
I think you said that once you
have clarity and your TV deals or your
major TV deals you'll update
investors on your long term financial
outlook when you look ahead
what are the key areas of investment for
WWE and how your cost growth be
impacted by the renewals I mean I that
will determine kind of our investment
levels based on finalizing our
distribution plans for on Smackdown
globally and we should have a pretty
good idea about idea around the vast
majority of that distribution by the
middle sometime in the middle of next
year once the once our plans in India
are solidified but we we anticipate that
it's going to we're going to invest in
three areas and they overlap one is data
and technology as we become more digital
social direct-to-consumer kind of that
data stack becomes incredibly important
it is today already second is in
creating more content more video you
know again we're all fighting for time
we stole the line from Reed Hastings we
can Pete with everybody and everything
including sleep so that really res
with us internally so we're shameless
stealers of good ideas so we're gonna
keep creating more content and then
we're gonna localize its this 70% of
consumption happened outside the US we
think there's just a real opportunity to
go even deeper so you'll see investments
in those three areas and things work
come together so people have
asked us you guys have started dabbling
with local content so we did a UK
championship last year that we put on
tubby W Network so that was all UK
talent not not the talented you see on
Raw and SmackDown and we ran a
tournament in market and people have
said is that is that part of a
bigger idea and it is it's it's
again it's not a one-off we're testing
we're learning but the opportunity we
think again because you again
seven or eight years ago if you had a
new piece of video you had to find
another party to put it on a invent on a
constrained platform about 24 linear
television platform that was the only
way today and I can't emphasize this
enough we create a piece of video we can
put in any broadband enable home in the
world
so the opportunity to do more video has
grown exponentially so when you see us
do something like the UK championship
it's not the one-off of the UK
championship it's that's really learning
about the opportunity to create
localized content maybe with local stars
and we like what we saw last year so
when you when we talk about investments
things like that yeah I want ask you in
the network it's it's now in its fifth
year your distributed I think in almost
every market in the world it seems like
the next big step up and growth may come
from personalization
localization or tearing of the market of
the network
what opportunities do you see
both at the high end and the low end of
the market and what are some of the risk
to be aware of when you you're gonna be
adjusting the product potentially yeah
yeah and you mentioned when you
talk about investment and you focus
specifically on then on the network on
the data tech side it is about
personalization so we think there's a
real opportunity there and again it's
not that's not a new thought it's just
we're you asked what the
companies trying to achieve financially
is we're trying to invest for the long
term while continuing to
grow and expand in the short-term
profitability so you have to make
choices but we think on the
data and technology and products I
personalization is a big opportunity in
the network
you mentioned localization today the
network's available everywhere in the
world but it's a u.s. product it's in
English US currency we feel pretty
strongly that localizing it gives us
opportunities in the markets where it's
already available to go deeper and grow
the network another level and then
finally I mentioned the the company's
overall business is ticket it's video
product that's the way in essence that
we touch all our fans and and we think
there's a way to bring all of those
things together in one place so we've
talked about the the notion of tearing
the content of tearing the network
having maybe a premium tier where you
can bring a lot together and make it
easier for our fans to interact with us
who are our most ardent fans we also
think there's an opportunity on a lower
price or free tier as well just giving
people a place to engage with more
content that helps grow the
over overall service so yeah we're
excited over the next couple years and
you mentioned all that change
there's inherent operational and
executional risk within that it's one of
the reasons we've taken our time I know
investors have asked for a long time
when are you going to do these things
and we've said it's coming and part of
it is there's a business model model
element to this you have to be smart
when you tear because if you do it the
wrong way it becomes cannibalistic as
opposed to a creatives so there's the
business model element but there's also
the product user experience so we wanted
to take our time and learn and
we we've been doing a lot of that for
last four years so here I think in the
next year or two you'll see some changes
that we think are going to be beneficial
with your new reporting structure you
you started breaking out a separate
revenue line item for advertising and
sponsorship which appears to be growing
at a really healthy rate can you help us
unpack what's in this segment both in
terms of traditional sponsorship and
then digital advertising and what sort
of a growth driver among those
did yeah so if you think about media the
rights to the a lot of the advertising
for our most valuable product which is R
on Smackdown are given to our partners
who pay us a license fee so that means
the the assets that we're left with on
sponsorship and advertising and you
touched on them are primarily the
digital and social assets as well as the
overall sponsorship with the brand and
both of those have been growing but
there's no doubt that the the digital
and social and and YouTube specifically
have grown dramatically over the last
six or seven years so that's been a big
part of the growth try but all elements
have including the sponsorship
have shown some nice lifts so yeah when
we reduce the number of segments we
started getting a little bit more
visibility into the secular revenue line
I don't including that one and
on the digital side is that growth
coming from just more content
we're at more places to sell ad
units are you getting higher CPM s on
that off yeah it's a little it's a
little bit of all of it so you're
driving more hours that we are putting
out there more engagement is happening
and CPMs are improving I always tell
people when you think about our digital
advertising because 75% of that
consumption is happening outside the US
you have different levels of CPM so the
CPM is in India are very different than
the CPM s in the US as are the
sell-through rates so those are still
kind of in lagging us metrics but we
expect that to change over time again
generally as the economies grow but you
know you've seen growth kind of across
all the key levers okay we have a few
minutes left want to open it up to the
room over here
Giorgio's with Disney's recent
acquisition of bamdeck does that change
your guys thoughts on using BAM Tex
platform for your OTT product no I mean
it's it's an input into the
decision-making but if you look
out at our video supply chain we use
multiple partners whether it's encompass
or any tea an EP or BAM Tech fun we're
on the mobile app side so we use
multiple providers and bam Tex
part of that video supply chain but I
wouldn't describe it as a strategic part
of it so we're always evaluating every
vendor to try to improve the product so
I wouldn't say it's a acquisition it's a
huge part of our thinking but it goes
into it any others in the room no just
on the network I know I've asked you
this in the past but some of
the other media companies we talk to
always talk about the benefit of
district distributing their subscription
services through an Amazon or Hulu I
think domestically you're still all
direct do you see the potential
to distribute through a wholesale
partner yeah I mean we we talked to
people continuously actually around the
world and what I always have
said David is it's a combination of what
the economic relationship is it's the
user data as well as a consumption data
so we've got to balance all that we're a
little bit different than a general
entertainment network who needs reach
and needs to be available in multiple
platforms I always mentioned that there
are direct consumer service our for our
most passionate fans it's I'm not trying
to get someone who's a not a WWE fan to
subscribe to WWE Network that's not
going to happen what's going to happen
is I may bring in a new fan who starts
watching Raw and Smackdown on YouTube or
sees it on on USA or sky they become a
fan and they say boy I've got to get
WrestleMania yeah I'm gonna get the WWE
or so I the the value of having being on
one of those platforms I think might be
there may be some incremental value
centralized billing and so on but not so
much so that we're willing to make kind
of significantly stood a significant
trade
some those other things economics the
user information the consumption data
I've got time for one more an
interesting note in your 10 Q is that
WWE sold the naming rights for the XFL
to alpha entertainment and I think in
exchange you got a minority equity
interest in the new XFL I know there's
no financial obligation for WWE to XFL
but I level thoughts on the
endeavor yeah look I mean I'm a huge
football fan
it is the 800-pound gorilla in terms of
video consumption the United States it's
it's the sport with the biggest
offseason so you're there's no football
college or pro between the
Super Bowl and kind of September 1 so it
looks like it's a really good
opportunity I think the it will require
cap of significant capital so when we
WWE looked at it we said that's a pretty
big level of investment at venture type
risks and probably doesn't fit in a
public company of our size
Vince has the capital to do it on his
own so that's how alpha was formed and
and then we we struck a deal on the on
the on the marks recently like you
mentioned so well yeah we're we're I'm
excited to see him so you have another
big success with the XFL all right
George thanks for coming all right
thanks for having us

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