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It's an interesting move. I'd love to know the economics of it - Australian subscribers, remnant PPV buyers, how much Binge are paying for it. It suggests that WWE doesn't have a huge market in Australia such that they're selling everything lock stock and barrel to a third party distributor.
It's more content for similar money (ie non wrestling content) as opposed to the Network, so it's good for viewers. It's yet another streaming service for people to deal with, and that's well beyond a critical mass in a condensed market like Australia.
I'd assume it's part of the WWE's global positioning to sell their content to third party distributors rather than having to continue to spend as much money on UI upgrades for the WWE Network, server costs, etc. This type of deal has been done in a few countries now and allows Foxtel to still be the 'exclusive' home of the WWE in Australia.
PPV buys would be incredibly small by now in Australia, thus why Foxtel was prepared to lose the profits from it to air Summerslam & Money In the Bank on Fox8 rather than go through the process of running a second "Main Event" channel signal for the events that clashed with UFC.