The article was likely a misquote and/or misunderstanding between the reporter and CFO.
The app since existence (however many years that has been) has been downloaded over 10 million times.
I don't even think the most optimistic bulls would think 10 million subscribers :)
As far as how many people stay on with the trial, the real reckoning will come 6 months from now when people choose to drop it. I would imagine quite a few will gladly lock in for $60 for the first 6 months given you get Wrestlemania, a $60+ PPV in its own right.
The real question is, will they hang on? As someone who has agreed to the 6 months, I won't once my period is up. Getting the pay perviews super cheap is the only reason to stay on... I've not been impressed with the content at all.
Don't get me wrong, it was really neat to go back and watch Hogan slam Andrew, or Hogan turn heel, but I did all of that the first hour. I'm not going to sit here and rewatch a 3 hour pay per view from 8 years ago no matter how much I liked it. I'll skip to the highlights, or find the clip (notice I said clip since really I'm only wanting to watch a couple minutes of whatever happened) on youtube or elsewhere.
Bottom line to me is that the WWE Network is a great deal for consumers (particularly those that buy more than just Wrestlemania), but not so great for the company. It would be like if TSLA said "hey now we're going to sell cars for $20,000!" Lots of people would buy, but would be negative for the company & thus shareholders.
but beats on revenue and eps (cited due to share count).
Missed every analyst metric otherwise as stated in headline. Artificially up because of the accelerated share repurchase. Do not be surprised to see stock reverse off these after hour gains (and gains in the morning) when the reality of the numbers sets in.
Actually for the most part I was spot on. Picked up end of december. The little dip last week was out of character, but with the divvy about to be declared (any day now, likely this week) and pay date announced, we saw it rebound nicely in two sessions back to back.
market just wants confidence they can and will continue to pay (if not eventually increase) the $.35 per quarter.
Takes a while for these guys to get noticed. Best of luck with your short, maybe we can both make money somehow :)
tax loss selling, expect weakness until week before end of year or so (or it will at least, pardon the pun, flounder around here without much of a bounce). Once that's out of the way and it's off the books, it will grind higher into distribution announcement which will come in January, to be paid in February. Expect no changes in the dividend.
If anything, expect them to close the deal they have been talking about, and boost the dividend (albeit small). Too high of a yield here. Just gotta hold and add through the folks giving it up and taking the loss before 2013 closes.