WWE’s ESPN Strategy: Shapiro Highlights Authentication as Key to Growth

The future success of WWE’s partnership with ESPN hinges on expanding access to ESPN Unlimited through authentication deals with major cable and streaming providers, according to TKO Group President Mark Shapiro. While acknowledging a positive trajectory, Shapiro emphasized that the current $29.99 monthly cost of ESPN Unlimited is a barrier for many WWE fans.

Initial Impact and Parallels to Peacock

Speaking at the Morgan Stanley Technology, Media & Telecom Conference, Shapiro addressed concerns surrounding the move of WWE premium live events (PLEs) to ESPN Unlimited last September. He noted that similar questions arose when WWE initially transitioned content to Peacock, a move that ultimately proved successful. “It definitely impacts us,” Shapiro said, adding, “We play the long game with WWE and we’re doing the same with ESPN.”

The Affordability Challenge

Shapiro pinpointed the price point of ESPN Unlimited as a significant obstacle. “That is, I believe, somewhat prohibitive, especially in today’s economy and the struggles that certainly middle income and low income earners are having with affordability,” he stated. He stressed the necessity of securing authentication deals that would allow subscribers of platforms like YouTube TV, Dish, and Comcast to access the service at no additional cost.

Progress with Authentication and Audience Growth

Comcast Xfinity has already begun enabling authentication for its subscribers, and Shapiro anticipates similar arrangements with YouTube and Dish in the near future. He believes that widespread authentication will immediately boost WWE viewership. Despite the ongoing transition, Shapiro reported a “significant increase in audience” for the recent Elimination Chamber event compared to Wrestlepalooza in September, expressing encouragement from the real-time data shared by WWE President Nick Khan.

Long-Term Outlook and Potential for Expansion

While acknowledging that current viewership levels haven’t yet matched those seen on Netflix or Peacock, Shapiro remains optimistic. He too touched on the potential acquisition of Warner Bros. Discovery by Paramount Skydance, viewing it as a positive development for TKO. He suggested that TNT could be a suitable platform for UFC events should the deal materialize, given the network’s strong association with sports programming.

Shapiro conveyed TKO’s commitment to a long-term strategy, confident that increased accessibility to ESPN Unlimited will drive stronger viewership numbers and solidify the partnership’s success.