DirectTV, a well-known satellite company, is making threats to cease airing WWE pay-per-views.
The dispute is due to the fact that the WWE Network will offer subscribers free access to all pay per views upon signing up for a $9.99 deal, with a six month commitment.
Customers who watch all of the WWE pay-per-views will save over $500 per year.
WWE only collects about 40% of the profits off of the pay-per-views when airing them on satellite. By expanding the WWE Network, the company will be able to profit 100% from their own shows.
Customers have been able to watch WWE events on gaming consoles since 2013, resulting with a decline of pay-per-view purchases for DirecTV.
WWE network will be a streaming service that will require high speed internet access, so wrestling fans in rural areas as well as those without broadband internet access would still need to purchase pay-per-view events through their local satellite company.
DirecTV is re-evaluating the economics of their business relationship with the wrestling giant, and will now have to decide what is best for their company.
The WWE network is expected to start airing all shows including pay-per-views by the end of February.
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