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The ratings are very average compared to what it used to be. There was a time (and I'm even talking post-Attitude Era) when a 3.8 would have been considered a rare rating and almost 'low.' Now it's a huge accomplishment to even get close to that. Ratings have slowly decreased over the years. PPV is a big source of revenue for the company, and their PPV buyrates are at an all time low. 300,000 used to be considered an average (or slightly above average) PPV buyrate. Nowadays, it's a blessing for them to even get close to that, outside of Royal Rumble and Wrestlemania. As time goes on, no improvement made to the product will only mean the ratings and buyrates will decrease even more. They are not far from falling into the 2s now, and look at how much WWE panicked when Raw got a 2.9 and 2.7 last month (even though that might considered a normal rating for other cable shows.)
And yes, the WWE Network will certainly flop if they go through with it.
And yes, the WWE Network will certainly flop if they go through with it.