Quote:
Originally Posted by Noid
A decrease in ratings is still a decrease in ratings. I mean, RAW could be #2, but it's not where it once was. This is like the Dixie Carter "Well, Vince Russo didn't write that segment" response to "Fire Russo!" chants in TNA. Somehow you still have to explain to shareholders why your business is declining.
Although reports are that Vince is panicking, the ultimate goal is to probably have everything on the WWE Network as traditional television platforms collapse. I imagine ratings will decrease even more over the next few years, as WWE gets more and more air-time.
What will be hard to explain is why there isn't significant WWE Network subscription growth as ratings decline, if the idea is to move people from one medium to another. The explanation will be "Football" and at least the WWE will get on enough devices in India, Japan and maybe even China to at least perpetuate the idea that it is a growing enterprise.
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Thats the thing though, business is NOT declining. RAW ratings might be slightly down, but RAW ratings go up and down all the time. A smart investor would look at the overall prospects of the business. RAW has been a steady driver of viewers for OVER A DECADE. Very few shows on all of TV can lay the same claim. Thats why WWE will continue to be a very profitable entity. As an investor, I would be more concerned about how does WWE elevate the perception of their audience, so that networks like USA can charge for ads, and in turn, WWE can generate more revenue in TV rights fees. Thats not going to be accomplished by pushing Cesaro to the moon.
Why would a ratings decline lead to more network subs. Sorry, not sure I'm following your logic there. I do agree that WWE is poised to see massive international growth in the network. Which is yet another reason why the long term future of the company is very strong.