While WWE fans are excited about the WWE Network, one company isn’t because it will effect their revenue. That company is DirecTV, one of the PPV distributors for WWE.
A typical deal between WWE and distributors is usually 50/50 according to a report by the Los Angeles Times. With the Network in place that means that companies such as DirecTV will lose on that 50% deal if a subscriber switches to WWE Network.
“Clearly we need to quickly re-evaluate the economics and viability of their business with us, as it now appears the WWE feels they do not need their PPV distributors,” DirecTV said in a statement.
The statement added that the audience for PPVs have been at a steady decline and the Network will surely accelerate the trend.
WWE quickly replied through Vince McMahon who said that DirecTV would be foolish not to carry their pay-per-views anymore as they will still make money from those who do not subscribe to the WWE Network.