Thread: Ratings Thread
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Old 02-09-2017, 02:07 PM   #56
BigCrippyZ
 
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Quote:
Originally Posted by The CyNick View Post
You must not be paying attention to these negotiations.

If your statement is Network TV rights fees are generally higher than cable, you would be correct, because they draw a larger audience. Most people know that.

When it comes to ratings, you don't see it listed as every TV show ranked against one another. Ratings are ranked with cable separated from Network. Because it's apples and oranges.

WWE could negotiate with the major networks, but the networks would look at WWEs numbers and likely take a pass. WWE we assume will be negotiating with USA and other cable outlets. USA is not worried about their standing vs say ABC, but they are worried about their standing vs ESPN. The negotiations will centre around what WWE will do for USAs overall standing vs other cable networks. If for example, WWEs five hours of content pulls USAs weekly average over the top 25 average, then that puts WWE in a good position. Likewise a cable network below the average will look at WWEs numbers and think this might be a way to get them above the industry average. Of course it comes down to a numbers game of how much are those additional eyeballs worth. In the Attitude Era, not much, because the biggest WWE was seen in a more negative light. Now with the clean up of the product, you have advertisers lining up to be involved with WWE, which will raise their value even more as more can be charged for ad dollars.

I'm happy to continue to school you on how the industry works if you'd like to PM me.


I'm not talking about how the ratings industry works, I understand how it works.

I'm talking about how the auditing and valuation of IP works when it comes to negotiating rights deals, which you clearly know nothing about.

I guarantee you that USA or any other potential network that might want WWE's TV rights, whether it's cable, broadcast, doesn't matter... when determining valuation of WWE's TV rights deal (what they should pay WWE) they will look and compare WWE's ratings with more than just other shows/networks in whichever format (whether they're broadcast, cable, etc.) they compete with. They will absolutely compare WWE's ratings with ALL networks, whether broadcast, cable, whatever. Not only will USA or any other network that offers for WWE's TV rights, require WWE to submit their own audit and expect to see WWE's ratings in comparison with ALL networks in WWE's own audit that they will submit, but they will also require WWE to consent and allow the network to perform their own audit (either internally and/or with an outside independent auditor) that will include a comparison in WWE's ratings with ALL networks. Without those comparisons, you won't get a true and accurate valuation of WWE's television rights.

If you knew what you were talking about, you'd know that has been and will continue to be the case in the future, not just for WWE, but for any rights deals for any television shows.
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