Per a report by CNBC, WWE is looking to boost its sponsorship revenue and aims to expand its programming, now that the company has returned to live events, and their streaming deal with Hulu is set to expire this year.
The main highlights from the CNBC report are below:
-Analysts suggest WWE is undervalued when it comes to sponsorship revenue, estimating the company brings in around $35 million per year just from sponsorships. This number is less than UFC, which generates more than $100 million annually.
-According to IEG, sixty-seven percent of WWE’s fanbase is more likely to consume brands associated with the company. This is ahead of the 55 percent average for the group of the 11 biggest sports leagues, including the NFL, which is the most popular sports organization in the United States.
-WWE gets most of its revenue from its media business, accounting for $278.1 million of its $333.4 million overall revenue in the quarter that ended on March 31. WWE’s Advertising and sponsorship revenue increased from 27 percent to $19.8 million from the year-ago period.
-WWE is preparing for key media deals amid an already “increasingly cluttered streaming marketplace,” according to WWE President Nick Khan.
-Netflix probably wouldn’t be interested in WWE, according to longtime media rights advisor Lee Berke, since WWE is already in a five year – $1 Billion deal with Peacock. He said that it would make more sense for the NBCUniversal service to add more WWE rights.
-WWE is looking at overseas expansion, particularly in India, home to a billion people and a growing middle class. WWE estimates its content is shown in more than 180 countries. WrestleMania 38 drew more than 50 million viewers in India.
-WWE President Nick Khan stated that India is a “hugely important market.” Khan further noted WWE is waiting for networks to finish bidding on rights to cricket – the most popular sport in the country – before the company determines its future media marketplace there.
-In 2021, WWE reported roughly $72 million combined for advertising and sponsorships in its media and live events businesses. WWE made more than $10 million in sponsorship fees alone for WrestleMania 38. WWE’s sponsorship partners include Toyota, DoorDash, Rocket Mortgage and Rihanna’s Fenty Beauty cosmetics line, said McMahon, who is also the daughter of longtime CEO Vince McMahon.
-A longtime advisor in the media rights industry stated that tt might make sense for WWE to broaden its partnership with Peacock.
You can read the full report at CNBC’s website.