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WWE going broke


UFCCagerattler

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http://americasmarkets.usatoday.com/2014/05/16/body-slam-wrestlings-wwe-shares-down-43/

 

The company is tanking. A cautionary warning for the UFC which has basically copied their business plan and relies on a somewhat similar pool of morons to buy their ppvs.

 

Entertainment is changing. Nobody wants to buy 4 hours of crap to see 1 or 2 decent fights.

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Except that the WWE is basically out of the PPV business thanks to the WWE Network (which has caused multiple large PPV providers in the US to drop WWE's PPVs), so they now have a completely different business model than the UFC.

 

Also, that article doesn't really know what it's talking about. Today's drop really has nothing to do with their online network. They already had a small drop a month ago over that when they revealed the first subscriber numbers.

 

This is in response to their new TV deal being announced yesterday. The money they get for their TV shows in the US is believed to have actually gone up by about $60 Million (from a little over $100 Million/year to around $160 Million/year), but because WWE said to investors that they would double, or triple the amount they were getting, the stock price is taking a huge hit.

 

It's no different than companies that make $100 Million one year, say they expect to make $200 Million the next year, than wind up only making $150 Million the second year instead. Their stock price goes down, even though the company made more money in the second year, but because they didn't make as much as they thought they would, the stock takes a hit.

 

Fun fact on your idea that the company is "tanking": Their stock price is still up $2.29 compared to this day last year, so this isn't some big doomsday. This is a stock that saw its price inflate based on potential with the launch of the Network, and the renewal of their US TV deal, and it is leveling back out now that those things have happened, and that potential isn't there anymore.

 

This is not the end of the world for WWE. They're probably going to see their financials be down for a couple of years while they transition their business from PPV to the WWE Network, but they're far from any kind of doomsday.

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Except that the WWE is basically out of the PPV business thanks to the WWE Network (which has caused multiple large PPV providers in the US to drop WWE's PPVs), so they now have a completely different business model than the UFC.

 

Also, that article doesn't really know what it's talking about. Today's drop really has nothing to do with their online network. They already had a small drop a month ago over that when they revealed the first subscriber numbers.

 

This is in response to their new TV deal being announced yesterday. The money they get for their TV shows in the US is believed to have actually gone up by about $60 Million (from a little over $100 Million/year to around $160 Million/year), but because WWE said to investors that they would double, or triple the amount they were getting, the stock price is taking a huge hit.

 

It's no different than companies that make $100 Million one year, say they expect to make $200 Million the next year, than wind up only making $150 Million the second year instead. Their stock price goes down, even though the company made more money in the second year, but because they didn't make as much as they thought they would, the stock takes a hit.

 

Fun fact on your idea that the company is "tanking": Their stock price is still up $2.29 compared to this day last year, so this isn't some big doomsday. This is a stock that saw its price inflate based on potential with the launch of the Network, and the renewal of their US TV deal, and it is leveling back out now that those things have happened, and that potential isn't there anymore.

 

This is not the end of the world for WWE. They're probably going to see their financials be down for a couple of years while they transition their business from PPV to the WWE Network, but they're far from any kind of doomsday.

 

Also keep in mind that WWE's stock always hovers around $19 per share, give or take a few dollars. People weren't happy with the TV deal for whatever reason, so the stock went down a bit. It'll recover in the next few weeks when they do something positive. Their stock price always hovers around the same price point so there's not really much to be worried about.

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"after telling investors its online TV network won’t cover the falling demand from pay-for-view and other businesses this year."

 

The PPV model has got to change in the same way the music business changed.

 

iFight is on the horizon. I don;t want a whole CD - I want a couple of tunes.

 

I want to buy just the fights I want - which is exactly what the UFC is struggling against. They are hell bent on trying to stick their customers with a big load of crap. This is why the PPV businesses are failing.

 

And make no mistake - the UFC PPVs are falling too. Have been for quite awhile.

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Again, that article doesn't know what it's talking about. They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business in favour of trying to move people to subscribe to the WWE Network.

 

Yes, their PPV numbers haven't been great the past few years (outside of Wrestlemania), but that has nothing to do with their current situation.

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Again, that article doesn't know what it's talking about. They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business in favour of trying to move people to subscribe to the WWE Network.

 

Yes, their PPV numbers haven't been great the past few years (outside of Wrestlemania), but that has nothing to do with their current situation.

 

You're wasting your time, cagerattler is going to go with the narrative that helps his anti-ufc narrative regardless of facts.

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Again, that article doesn't know what it's talking about. They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business in favour of trying to move people to subscribe to the WWE Network.

 

Yes, their PPV numbers haven't been great the past few years (outside of Wrestlemania), but that has nothing to do with their current situation.

 

You're wasting your time, cagerattler is going to go with the narrative that helps his anti-ufc narrative regardless of facts.

 

Everything is fine.

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Stock prices fluctuate slightly because of alterations to business model that is different than usual, resulting in non share holders claiming that business is "tanking." Coming up in the next hour, the sun rises in the east and sets in the west. Now over to Champ for sports...

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"They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business"

 

Do you even read what you write?

 

Eliminating their PPV is how they are dealing with their loss of PPV buys. It has to happen. PPV us not the future, its the past.

 

 

My point was, there's not suddenly some sharp decline in PPV interest over the past few months. The sharp decline in their PPV business right now is moving to the Network. That article makes it sound like suddenly everyone buying WWE PPVs stopped because of a lack of interest, rather than because WWE is moving away from PPV.

 

WWE's PPV business has been pretty consistent the past few years. They get spikes for certain shows (Royal Rumble, SummerSlam, and mainly Wrestlemania), and dips for certain shows that don't have a very good build (Battleground last year, which tanked), but it stays roughly consistent (most shows outside those three have hovered in the 150,000 - 250,000 range for a few years now).

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"They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business"

 

Do you even read what you write?

 

Eliminating their PPV is how they are dealing with their loss of PPV buys. It has to happen. PPV us not the future, its the past.

 

 

My point was, there's not suddenly some sharp decline in PPV interest over the past few months. .

 

From the article:

 

The company needs to sign up up to 1.4 million people for its online video service to make up for its declining traditional business. The company only reported having less than half that many viewers signed up as of late February.

 

Their "declining traditional business" is PPV buys and related merchandising.

 

The only future PPV has is in iFight. I want to see Rampage body MO and Tito get TKOed with a liver shot. I'm talking probably 6-7 minutes of fighting in total. The rest of it I don't want to watch and don't want to pay for.

 

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"after telling investors its online TV network won’t cover the falling demand from pay-for-view and other businesses this year."

 

The PPV model has got to change in the same way the music business changed.

 

iFight is on the horizon. I don;t want a whole CD - I want a couple of tunes.

 

I want to buy just the fights I want - which is exactly what the UFC is struggling against. They are hell bent on trying to stick their customers with a big load of crap. This is why the PPV businesses are failing.

 

And make no mistake - the UFC PPVs are falling too. Have been for quite awhile.

 

I would always prefer an option to pay for individual fights that I want to see. At least give the buyer some options, so that they can purchase the entire fight card or only the fighters that they want to see.

 

Up and coming fighters should get more time to be shown to the public on free fight showings on tv so they can build their fan base.

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"They're not dealing with a falling demand from Pay Per View, they're eliminating their PPV business"

 

Do you even read what you write?

 

Eliminating their PPV is how they are dealing with their loss of PPV buys. It has to happen. PPV us not the future, its the past.

 

 

My point was, there's not suddenly some sharp decline in PPV interest over the past few months. .

 

From the article:

 

The company needs to sign up up to 1.4 million people for its online video service to make up for its declining traditional business. The company only reported having less than half that many viewers signed up as of late February.

 

Their "declining traditional business" is PPV buys and related merchandising.

 

The only future PPV has is in iFight. I want to see Rampage body MO and Tito get TKOed with a liver shot. I'm talking probably 6-7 minutes of fighting in total. The rest of it I don't want to watch and don't want to pay for .

 

I don't know if PPVs or merchandising are declining and I don't care either way. I do agree with the bolded.

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BRrock Lesnar guarantees them 2 million+ PPV buys per event even WITH the WWE Network. They're fine until he retires

 

Not to be a stickler, but only two events in history have ever had 2 million+ buys, and both were Mayweather boxing events. WWE's record for buys was 1.217m for WrestleMania headlined by Rock/Cena. UFC's record was 1.6m buys for UFC 100 headlined by of course Lesnar/Mir. Point being, Lesnar might well be a huge PPV draw, but WWE's chief drawing element is the name "WrestleMania" - and there is a more than decent chance 2+million buys may never be broken again short of Manny/Mayweather due to the entire PPV industry on a general decline.

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BRrock Lesnar guarantees them 2 million+ PPV buys per event even WITH the WWE Network. They're fine until he retires

 

Not to be a stickler, but only two events in history have ever had 2 million+ buys, and both were Mayweather boxing events. WWE's record for buys was 1.217m for WrestleMania headlined by Rock/Cena. UFC's record was 1.6m buys for UFC 100 headlined by of course Lesnar/Mir. Point being, Lesnar might well be a huge PPV draw, but WWE's chief drawing element is the name "WrestleMania" - and there is a more than decent chance 2+million buys may never be broken again short of Manny/Mayweather due to the entire PPV industry on a general decline.

 

Raptor Jesus vs Satanasaurus Rex II would bring in over 2 million buys

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BRrock Lesnar guarantees them 2 million+ PPV buys per event even WITH the WWE Network. They're fine until he retires

 

Not to be a stickler, but only two events in history have ever had 2 million+ buys, and both were Mayweather boxing events. WWE's record for buys was 1.217m for WrestleMania headlined by Rock/Cena. UFC's record was 1.6m buys for UFC 100 headlined by of course Lesnar/Mir. Point being, Lesnar might well be a huge PPV draw, but WWE's chief drawing element is the name "WrestleMania" - and there is a more than decent chance 2+million buys may never be broken again short of Manny/Mayweather due to the entire PPV industry on a general decline.

 

Raptor Jesus vs Satanasaurus Rex II would bring in over 2 million buys

 

Throw in Brock Lesnar as the special guest referee and it breaks 3 million

 

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TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

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TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

10m+ viewers?

 

I call bull**** on that.

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TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

10m+ viewers?

 

I call bull**** on that.

 

I'm just ballparking it but I'm probably correct

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TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

10m+ viewers?

 

I call bull**** on that.

 

I'm just ballparking it but I'm probably correct

 

You're not correct.

 

It's more towards 20 million.

 

Here's a link to an article from back when Lesnar was coach on TUF.

 

http://mmajunkie.com/2011/05/the-ultimate-fighter-13-ratings-again-hit-season-low-for-episode-no-9

 

In it you will see that several episodes of the Lesnar/Dos Santos season pulled in ratings of only 1 million. To be fair, I'm not entirely sure their interpretation of the Nielson ratings were accurate. However, suffice to say, Lesnar as coach was not a 20 or even a 10 million. To the best of my knowledge, the highest ratings any MMA program has ever had was around 9 million viewers for the Dos Santos/Velasquez fight on Fox...which would also possibly make it the most watched fight of all time.

 

Obtaining 20 million viewers is exceptionally rare. For a frame of reference, NBA Finals don't even draw in 20 million viewers. Game 5 back in 2012 was watched by 16.9 million viewers. The only things that break 20 million viewers are the NCAA Basketball Final game (yes NCAA ball does higher numbers than NBA), the BCS Championship game, the Olympics, and of course, the Super Bowl, which easily cruises well past the 100m mark.

 

MMA is popular, but 20 million viewers? No, no where near that.

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TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

TUF brought the UFC the whole reality TV crowd. But tv shows are all lifed, and TUF is over. The numbers will never be what they were. That is the nature of TV.

 

 

Because Brock isn't coaching anymore. 10m+ viewers per episode when Brock coached and that's just the US audience. There's over a BILLION people in China

 

10m+ viewers?

 

I call bull**** on that.

 

I'm just ballparking it but I'm probably correct

 

You're not correct.

 

It's more towards 20 million.

 

Here's a link to an article from back when Lesnar was coach on TUF.

 

http://mmajunkie.com/2011/05/the-ultimate-fighter-13-ratings-again-hit-season-low-for-episode-no-9

 

In it you will see that several episodes of the Lesnar/Dos Santos season pulled in ratings of only 1 million. To be fair, I'm not entirely sure their interpretation of the Nielson ratings were accurate. However, suffice to say, Lesnar as coach was not a 20 or even a 10 million. To the best of my knowledge, the highest ratings any MMA program has ever had was around 9 million viewers for the Dos Santos/Velasquez fight on Fox...which would also possibly make it the most watched fight of all time.

 

Obtaining 20 million viewers is exceptionally rare. For a frame of reference, NBA Finals don't even draw in 20 million viewers. Game 5 back in 2012 was watched by 16.9 million viewers. The only things that break 20 million viewers are the NCAA Basketball Final game (yes NCAA ball does higher numbers than NBA), the BCS Championship game, the Olympics, and of course, the Super Bowl, which easily cruises well past the 100m mark.

 

MMA is popular, but 20 million viewers? No, no where near that.

 

MMA Junkie is garbage, check out my blog for accurate Brock Lesnar ratings and buy rates.

 

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The season finale of Big Bang Theory pulled almost 17 million views.

 

The largest audience ever for an MMA fight was Fedor v the black guy on CBS which pulled about 4 million at it peak, during the actual Fedor fight.

 

I think maybe with a lot of advertising and so forth Brock might pull 4 million. Maybe 5 million on the right day/time.

 

More likely is about 1.5 million, which is where MMA is.

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The largest audience ever for an MMA fight was Fedor v the black guy on CBS which pulled about 4 million at it peak, during the actual Fedor fight.

 

1) Fedor vs. Rogers pulled 5.46 Million at its peak (4.04 Million Average).

 

2) That was never the record, because Kimbo Slice vs. James Thompson did 6.51 Million Peak (4.85 Million Average) for Elite XC a year, and a half earlier.

 

3) UFC on FOX: Velasquez vs. Dos Santos beat them both with an 8.8 Million Peak (5.7 Million Average).

 

More likely is about 1.5 million, which is where MMA is.

 

On cable, right now, yes, but the FOX shows regularly do 2 Million +, and that's usually without significant drawing stars (since the UFC doesn't have many significant drawing stars anymore).

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