Raw rating lowest since July 2012

[The CyNick]

Originally Posted by BigCrippyZ I think it's a common misconception that WWE makes any direct money from the advertisers on RAW and Smackdown. Not to be confused with WWE's direct sponsors, the advertisers pay NBC Universal/USA Network to run the commercials. In turn, WWE is paid a television rights fee based on a negotiated contract out of the advertising revenues that are paid to NBC Universal. It is true that on a week to week or even quarter to quarter basis, WWE doesn’t get any more or any less money from advertisers on Raw when viewership goes up and down. It would be better for them if they did, because then they might be more responsive and open to change rather than stubborn and could potentially have incredibly successful weeks/quarters versus average weeks/quarters. As of the last quarterly financials WWE released, TV rights fees equal 40 percent of WWE revenue, Network subs total 25 percent, and house show tickets sales and venue merchandise sales equals 18 percent of revenue. So low ratings means WWE is going to have to brace for a huge drop in TV rights fees next time they negotiate a contract, and in the mean time, fewer people are being reached as potential Network and house show customers. WWE right now is like an athlete being lazy the year after they sign a big contract. However, eventually that contract ends, and if they only perform well in their the last year of their contract, people are going to notice that and pay less than they would otherwise, expecting that athlete to be lazy again once they sign the new deal and feel fat, happy and comfortable again.

Nobody who understands the business things WWE makes money off ads ran during RAW.

You're so off base in your thinking that is not even funny. WWE had double or triple the ratings in the Attitude Era, but monetarily they didn't maximize TV rights fees because advertisers wanted no part of the show. Today, even though ratings are far lower, they are doing better financially in large part because WWE has reinvented itself as a respobsible corporate citizen. Now you have a lineup of advertisers looking to buy airtime from USA. That wasnt even happening 3 years ago. USA recently came out and responded to the declining ratings by touting how successful WWE is for them.

Further, as I've explained many many times, if ratings across the board on down, advertisers will still pay top dollar for the shows that draw the most of the right type of viewer. RAW week in week out is a top 3 viewed show on Monday. Therefore advertisers will still pay top dollar.