Why Apple should invest in WWE
Joshua Smock
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A couple years ago, nobody would have predicted this.
Almost like an actual WWE match that has been building in a storyline over time, a potential scenario comes up that would only have been a "dream match" earlier.
WWE is up for sale, and they are actively looking at potential buyers. Vince McMahon coming back to broker a deal is the writing on the wall for the company, and there is a lot to be excited about.
While many offers, such as Disney and NBCUniversal, are lucrative and make sense, to me, a company like Apple could (and should) eclipse them all.
Why dive into a $5 billion sale for this?
Let's count the ways.
Live Sports is Big Streaming Business
In 2019, Apple created its own movie studio, determined to break into the then-upcoming streaming wars. With the creation of AppleTV+, it has endeavored to compete with Disney+, Amazon Prime, Netflix, and the many others who have joined in the battle for supremacy of the at home box office.
Disney has succeeded, though it's not quite pulling the profit they want. They're clearly willing to spend billions on IPs, with Star Wars, Marvel, and most recently the Fox merger to show for it. Also, it owns ESPN.
Prime has been huge, and with its purchase of MGM, it's willing to spend the money to pull in numbers. It also invested in NFL and tennis recently.
Netflix has been systematically beefing up its original content, though its struggles as streaming king in recent years means it needs a new way to bring in revenue. Sports could be it.
Apple, though, is the one that has been struggling. For years, it has practically been giving away the service, offering rebates and refunds to entice people to simply stay on as customers. To a multi-trillion dollar company looking to bring people over to its service, live sports is the next frontier.
Friday Night Baseball was a big investment that worked for Apple last season. Their recent purchase of MLS for this upcoming season is a sign that Apple sees this investment as worthwhile. It even offers a separate subscription for this that is competitive, and will provide a source of income to the tech giant for the next ten years.
So how does WWE come into play?
While any company that acquires this IP will require a renewed UI (more on that in a minute), Apple has a dedicated Sports section on its Apple TV app already. Its live events are housed here, and while clunky, it creates an area that could utilize WWE's live shows in an easy-to-find area.
WWE is known for its live programming, monthly specialty events, and its vast library. By adding this to Apple's current offerings, they could not only house these events live like NBCUniversal's Peacock app currently does, but they could do what Peacock won't: house the live events weekly. With the tv rights deals coming up for grabs around the same time as this sale, shows like Raw and Smackdown could have a permanent home alongside their monthly events and documentaries in one place for the first time ever.
The Library
WWE has been a company for decades. While not always in the live-broadcasting area, their shows have been entertainment to millions of fans. There are not many companies whose fanbase crosses generations, yet WWE is in that boat.
It's even in their company tagline: Then. Now. Forever.
With a purchase of WWE, there is a legacy that comes with it. A history that those who follow it are passionate about and enjoy revisiting.
For a company like Apple, whose streaming service is struggling, a purchase of WWE would give them a built-in fanbase that will immediately bring in profits and subscriptions.
It would also serve as an opportunity to add in marketing for a company that already excels at it. This combination adds a tremendous amount of value to Apple. With the still-low cost of $6.99 a month, WWE fans would flock here to enjoy the content.
If it can get the rights to Monday Night Raw and Friday Night Smackdown to keep everything in-house, this just became the go-to place for sports entertainment fans.
Combine that with the plethora of content the WWE Network produced for years on their own streaming app, the decades of pay-per-views and documentaries, and the ability to bring fans in during the weekly live events, and you have a success story waiting to happen.
Improvement to Sports UI on TV app
Any streaming service that is looking to include live sports on their services has a task in front of them with creating a tab that encompasses this in an easy-to-find manner.
Apple has precedent for this with its Store app, having a sub-category of Movies and TV Shows.
Adding in WWE to the line-up would showcase this content to both current (and potential) fans, and serve as an opportunity to bring people in who have drifted from the sport or never got into it.
Having an easily understood layout helps, and Apple has a current UI that would allow for this to happen easier than what is currently offered on NBCUniversal (or the crowded Prime UI).
This would also set Apple apart, as the current combination of products and services offered on streaming apps is getting to be confusing to consumers, who have to constantly search for what they're looking for, often buried in each app on separate tabs or areas.
Merchandising Rights
The amount of product WWE produces goes far beyond what is seen on TV. This is a company that thrives off of fans actively following it.
You have:
You get the idea. There's a ton that comes in with this. WWE made over a billion and a quarter last year alone, meaning Apple would be able to turn a profit in only a few years' time. For anyone getting into live sports, that's a deal worth taking.
Following suit with the MLS deal, Apple could create its own subscription service, which fans have already shown is something they are willing to pay for. This ensures Apple has a ROI sooner than just keeping things status quo. Not even NBCUniversal charges for the library and events it hosts from WWE currently.
Set it and forget it
There are few things that you buy that "just work" out of the box. Apple is famous for this. Half the time these days, things don't even come in the box, as the company assumes you already have charging blocks and cables with you. If not, they are happy to provide them at cost.
WWE, unlike other sporting options, comes just like Apple products: it just works.
With the purchase of WWE, all Apple has to do it create a platform for it, ensure its cogs continue to spin, and the business will immediately bring in money while doing what it has already been doing.
Someone like Vince McMahon, the billionaire running WWE since 1982, is not going to sell unless the future of his company is looked out for. He has this thing down to a science, and having his people already in place makes this sale super easy for Apple.
A Seat at the Table
Apple's potential purchase of WWE would also give them some real skin in the game of live sporting events and the world of professional wrestling. The wrestlers themselves move between companies and across storylines.
If the company is owned outright by Apple, then the contracts they could offer would make fans of previous generations tune in more, the performers would be more willing to look at Apple's WWE as a viable option, and it makes them competitive with other wrestling companies.
Here's why.
Shows like AEW and Ring of Honor have scheduled events. They are still on broadcasting networks and subject to those rules.
With WWE, assuming the live shows come with the purchase, everything is now done in-house, which allows for complete control. If either entity, Apple or WWE, decides it wants to create an event, or series, or documentary, they have the ability to do it with immediate effect.
WWE has their own film studio. They have known performers who have made it out of wrestling and into the public zeitgeist and pop culture.
Dave Bautista.
John Cena.
Dwayne Johnson.
Even (if you really want to go back) Hulk Hogan.
These are names that transcended the sports-entertainment industry, and these names have a good relation with these celebrities.
AppleTV+ is in dire need of star power, and if they have an "in" with these performers, along with many others who are potentially waiting in the wings, it presents another venue WWE can showcase its performers' talents and for Apple to flex a little bit.
Names like Cena and Johnson bring credibility and excitement with them. Add those names to an AppleTV+ movie that is brought to the big screen, and now you just made yourself a genuine contender.
Oscars. Golden Globes.
The potential is huge. And it's within Apple's grasp with a purchase such as this.
So, why should WWE avoid companies like Universal, Disney, Netflix, Amazon, and the rest?
Apple has an already-set home on their devices, services, and apps that simply needs a brief update to get going. It also has a huge following. They are showing an ever-increasing interest in live sporting events. There is room to grow, and with Apple's budget, McMahon's company has the potential to positively explode across different markets that may have been previously unavailable.
The other companies are all lucrative, and there will no doubt be a bidding war in the coming months to see where WWE's new home will be. But these other companies have an already crowded plate, and their apps become more difficult to navigate with each new merger (who knows how they'll combine HBO Max and Discover!). Apple has a simpler approach that would be easy to update and manage.
The future is looking bright for whichever company purchases WWE. For Vince McMahon, though, a sale with Apple would not only secure his company's future for years, but ensure he is able to maintain the level of controlled guidance and company growth they can provide him. With a huge budget and star power, WWE can go nowhere but up with a sale to Apple.