While WWE is on cable, they're playing the Nielson game. That's how their TV is going to be judged. If you don't want to be judged by your cable presence, get off cable, lol. It's true that people are cutting chords, and if the estimate is that 35% of cable's audience is going to cut, then you'd look at Raw's ratings, comparatively, with that in mind. Which is what most people do.
I don't know why WWE performing badly on a dying medium alleviates criticisms of its dwindling popularity. Being in a dying medium is itself a problem.
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