The Hamilton Ave Journal 04.30.09: Volume 2 – Issue 84
Posted by JP Prag on 04.30.2009
Is the WWE overacting to the IWC? How is Linda McMahon doing in her new role on the Connecticut Board of Education? Which Hogan got their reality show renewed? How is the Swine Flu affecting the world of wrestling? Where did all the ratings gains go? Can the WWE learn anything from Apple? All this and more is answered in this week’s edition of the Hamilton Ave Journal!
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 2 – Issue 84
ABOUT THE JOURNAL
The Hamilton Ave Journal is the only wrestling news report focused solely on the business of wrestling. Here in the Journal we not only look at the stories that are important to the investor and business-minded person, but also delve deeper into stories that most fans of wrestling would overlook. That is because the Journal is about getting the heart of the matters that affect the companies and outlooks of the wrestling world.
And where is Hamilton Ave? That is the location of the WWE Production Studio in Stamford, CT, and thus the most powerful place in the wrestling world. Besides, The East Main Street Journal just does not have the right ring to it.
Who am I? I am JP Prag: consultant, entrepreneur, businessman, journalist, and wrestling fan.
Now, ring the bell because the market is open.
The Journal's front page area known as What's News isn't just about telling you what has happened. The stories in this section are about what will have an effect on the wrestling industry, individual federations, and the wallets of the fans.
LEAD STORY: WWE vs. the IWC or with the IWC?
Once the leader in embracing new technologies and trends like cable television, PPV, and music videos, the WWE has become more standoffish as the years have gone by. For most of the past decade, the WWE has battled against embracing the internet too much, including banning websites like the one you are reading now form being able to interview their talent.
Over the past few years, the WWE has begun to soften. They have a website that has an "industry news" section; pages on Hulu, YouTube, Facebook, and MySpace; and their very own social network. Despite this, the WWE has maintained a safe distance from their internet fans, though it appears that much of that is changing as well.
With a new generation of wrestlers coming in, the WWE is finding that their talent are constantly online and use all of the various tools out there. In 2005, Matt Hardy was released from his contract with the WWE after the situation with Edge and Lita but was brought back in part to a large online petition that amassed 15,000 signatures. The WWE then put on a program between Edge and Matt Hardy that was in contradiction to on television stories, one of the first times they truly "reacted" to the internet.
More recently, WWE Chairman Vince McMahon has been increasingly concerned about leaks to internet sites. This culminated in February 2009's No Way Out when the crew literally put a tarp up around the Elimination Chamber so that nobody could see the practice going on inside. Of course, the irony is that it was reported to the internet that the tarp was up to avoid spoilers.
Over the past few weeks, though, something quite interesting has been happening. Wrestlers have been addressing "internet rumors" about their contract status. DJ Gabriel, Shad Gaspar, and Jeff Hardy have all released statements on MySpace and Facebook about where they stand with the company and whether they think they are going to leave or not. Shad Gasper and DJ Gabriel's comments were confrontational, but Jeff Hardy's were more enigmatic than taking issue with the rumors out there.
In times past, the WWE would never allow a contracted talent to comment on their status with company, nonetheless in a non-WWE controlled forum. Yet there seems to be no repercussions to these folks. Perhaps the WWE has lightened to the idea of letting wrestling disseminate information on their own terms?
Either way, the WWE has at least realized that in this area there is no need for them to fight anymore. For where else they continue to fight and do not need to, you'll have to read the Editorials section below.
Newsbites
Some items of note in the rest of the wrestling business world:
In their continual embrace of all technologies, TNA has now launched a Twitter page as well. You can get your tweets at http://www.twitter.com/tnaonline.
Warner Bros. has been making overtures to Midway Games about trying to buy the heavily indebted company. Midway is maker of the TNA iMPACT video game and currently has the second game under development, despite being in bankruptcy protection.
WWE CEO Linda McMahon is taking her new part-time job on the Connecticut state Board of Education seriously. She has spent the past few weeks touring schools, visiting the ones that are in the districts of the representatives who supported her. This is part of the WWE's continual effort to rebrand themselves as kid-friendly entertainment, and it appears to be working as schools were accepting of the wrestling purveyor with open arms.
Also during this time, Global Licensing Magazine named the WWE #37 of their list of top 100 licensors. It should be no surprise to readers of the Journal who see how much licensed merchandise the WWE sells every week in various forms.
The city of Tampa has been putting together a package to get a WrestleMania somewhere between 2011 and 2014. Orlando had great success with WrestleMania 24 (bringing $50 million to the local economy) and is also making a bid to host a WrestleMania. Despite the WWE's business not being near their peak, cities have realized the potential profit a destination event like WrestleMania brings to the area and making overtures in order to become hosts.
Muscle Flex, Inc. successfully defended themselves against WWE lawyers for the use of the term "In the Raw", which the WWE infringes on their various RAW trademarks. The courts found the WWE's trademarks to be too broad and confusing, eliminating the following from the WWE's filing:
"pre-recorded records; pre-recorded audio and visual tapes; pre-recorded video tapes and cassettes, pre-recorded audio-cassettes, pre-recorded tapes; posters; mounted and unmounted photographs; full line of clothing, namely tops, t-shirts, shirts, sweatshirts, sweaters, pullovers, blouses, jackets, coats, trousers, pants, jogging suits, exercise pants, exercise suits, sweatpants, shorts, underwear, boxer shorts, socks, clothing ties, pajamas, belts, gloves, wrist bands, bandannas; headgear, namely hats, caps; stickers; playing cards; mouse pads."
Hulk Hogan's Celebrity Championship Wrestling does not look to be coming back for a second season. Several weeks ago Eric Bischoff talked about new shows he was producing, and this week On-Camera Audiences removed tickets to the events from their website. Also, Danny Bonaduce stated on his radio show that his contract with CCW ends in October and he'd be free to pursue more wrestling after that. Meanwhile, Hogan's daughter Brook had her show (Brook Knows Best) renewed for another season.
The Swine Flu—which has now spread throughout North America, Europe, and Australia and is working its way into Asia through Israel and Russia—also caused the shutdown of Arena Mexico for the first time since 1985. The Mexican government does not want large quantities of people gathering in one place (where it is more likely for the airborne dieses to be transmitted), so no shows are expected for several weeks. Additionally, the United States has already cut off all flights to and from Mexico, cutting off many of the wrestlers who travel between the two nations for work.
In the Marketplace we look at the trends in television ratings. This section is less for critical analysis by the Journal but more for the reader to see what is really going on and to draw their own conclusions.
As with stocks, here in the Journal we track the progress of television ratings. If ratings are the barometer by which we judge the product, then over the course of 52 weeks we should be able to see patterns, trends, and anomalies.
For the week ending Wednesday April 29, 2009, here are the current standings of our shows:
RAW
Close (This Week's Rating): 3.4
Open (Last Week's Rating): 3.7
Percentage Change: ▼ 8.1%
52-Week High: 4.1
52-Week Low: 2.6
All Time High: 8.1
All Time Low: 1.8
SmackDown*
Close (This Week's Rating): 1.6
Open (Last Week's Rating): 2.0
Percentage Change: ▼ 20.0%
52-Week High: 2.5
52-Week Low: 1.6
All Time High: 5.8
All Time Low: 1.0
* SmackDown! ratings may include fast overnight if final ratings are not posted. Also, SmackDown! ratings are for the prior week as overnights are not available before this article goes to print.
ECW
Close (This Week's Rating): 1.2
Open (Last Week's Rating): 1.2
Percentage Change: ▼ 4.1%
52-Week High: 1.5
52-Week Low: 1.0
All Time High: 2.3
All Time Low: 0.6
TNA iMPACT**
Close (This Week's Rating): 1.2
Open (Last Week's Rating): 1.3
Percentage Change: ▼ 3.9%
52-Week High: 1.3
52-Week Low: 0.9
All Time High: 1.3
All Time Low: 0.6
** TNA iMPACT's are for the prior week as ratings may not be available at the time of the Journal's posting
SuperStars***
Close (This Week's Rating): 0.9
Open (Last Week's Rating): 0.9
Percentage Change: ▼ 2.2%
52-Week High: 0.9
52-Week Low: 0.9
All Time High: 0.9
All Time Low: 0.9
*** SuperStars ratings may include fast overnight if final ratings are not posted. Also, SuperStars ratings are for the prior week as overnights are not available before this article goes to print.
Analysis:
What an absolutely horrible week for ratings. RAW has taken all of the WrestleMania and draft gains and gone back to the ratings level they were at on February 9, 2009. Basically, the season of gains is over for RAW and they are back to where they were at the end of last year. SmackDown had an even worse week, though, shedding 20% of their audience to their worst rating since July 4, 2008. Actually, SmackDown has only had two other ratings points lower than this (September 8, 2006 and September 15, 2006, both with 1.0's when SmackDown was pre-empted in most major markets). In other words, this week was tied for SmackDown's second worse rating ever.
The bad tides spilled over into SuperStars—which already slipped to a 0.88—and ECW. TNA also felt the brunt of this week losing another 3.9% of their viewers to settle at a 1.23. This is still far above TNA's average at this time last year, but TNA has been a slight decline for a month now after having their highest ratings ever.
If any of these shows will do better this week is the big question mark. With so many regular shows coming to an end, as well as playoffs in hockey and basketball finishing, the WWE and TNA may be primed to be the only new content available until the summer seasons start on the cable networks in June.
We all know that wrestling is a business, but we don't often pay attention to what sells and makes money. Money and Investing looks into the top selling items in the world of wrestling and any interesting figures that may have come out this week.
What are the top ten selling items for the WWE? From WWEShopZone.com:
1. Jeff Hardy Ruthless Aggression #39 Action Figure ($24.99, on sale $16.99)
2. 25th Anniversary of WrestleMania 3-Disc DVD/Program/Event T-Shirt Package ($84.95, on sale $29.99)
3. 25th Anniversary of WrestleMania 3-Disc DVD/Silver T-Shirt Package ($64.95, on sale $23.990
4. Triple H Eversoris T-Shirt ($28)
5. Hardys Green Pendant ($10)
6. John Cena HLR Academy T-Shirt ($25)
7. Legacy Born Better T-Shirt ($25)
8. Jeff Hardy 3 Armband Package ($60, on sale $20)
9. Hardys WWE Shop and Jakks Pacific Exclusive Action Figure ($34.99, on sale $24.99)
10. 25th Anniversary of WrestleMania 3-Disc DVD/Program Package ($59.95, on sale $21.99)
With WrestleMania 25 completely in the books, the WrestleMania selloff had begun. The WWE has taken a page out of TNA's book and created a number of packages in order to ship off inventory. It seems the WWE was having some distribution problems as booths at FanAccess and WrestleMania 25 were selling out completely of product, yet WWE seems to have enough in the distribution center to need to see off at a discount. This stresses the extreme importance of managing inventory and distribution chains. Left over inventory that could have been sold at full price if it was in the right place is now being sold off at a discount, taking dollars right out the WWE's pockets.
TNA sometimes releases a list of top selling items on ShopTNA.com. According to the site the top selling items were:
1. Jeff Jarrett - King Of The Mountain ($29.99)
2. Cross The Line Triple Pack 2.0 DVD Set ($24.99)
3. Cross The Line Triple Pack DVD Set ($24.99, on sale $10.88)
4. Main Event Mafia – Black T-shirt ($19.99)
5. Best of the X Division Matches DVD ($19.99)
This reporter should get in as many comments now as possible since this list will most likely not be updated for the next several weeks to months. Basically, at no surprise Jeff Jarrett's DVD has come in at number one. Why is this no surprise? Because this list is completely suspect. Meanwhile, 40% of this list consists of DVD packages that are going to sell off excess inventory. With TNA, their problem is not having the right inventory at the right place, but having too much inventory in general. TNA has the carrying costs of keeping unsold merchandise in their warehouse and then selling it off at a discount. After so long to still have any of the original Triple Pack in stock shows just how much excess run off TNA had of the original products in the first place.
Wrestling isn't just about watching and reading. The best way to be a wrestling fan is to experience it live. Where is wrestling coming to in the next 2 weeks? The Personal Journal answers that question.
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
3 (May)
TNA Live (Pikesville, KY)
4
RAW (Buffalo, NY)
TNA iMPACT (Orlando, FL)
5
SmackDown / ECW (Pittsburgh, PA)
TNA iMPACT (Orlando, FL)
6
7
8
RAW Live (Erie, PA)
ROH Live (Boston, MA)
9
RAW Live (Youngstown, OH)
SmackDown / ECW Live (Grand Rapids, MI)
ROH Live (Edison, NJ)
10
RAW Live (Wheeling, WV)
SmackDown / ECW Live (Fort Wayne, IN)
11
RAW (Columbus, OH)
SmackDown / ECW Live (Evansville, IN)
12
SmackDown / ECW (Dayton, OH)
13
14
15
TNA Live (Florence, SC)
16
RAW / SmackDown / ECW Live (Bloomington, IL)
TNA Live (Greenville, NC)
Do you know a wrestling event coming up? Send one in to The Hamilton Ave Journal and we'll be sure to add it to the list.
The Editorials section is designed for you, the readers, to respond to the views presented in the Journal, send an important news item, or talk about another overlooked business related item in wrestling. Just beware: the Journal reserves the right to respond back.
From the commentary section last week, Richard had a couple of questions related to ratings:
I know you said you only counted the first run ratings. However do you think that on Telemundo Replays and AM RAW get unique audiences or are they just the same people watching it.
While there is most definitely some crossover—especially with AM RAW—for the most part there are unique audience members. Of course, the Telemundo crowd could hit the SAP button, but as far as just watching the show as it, RAW on Telemundo is a destination program. AM RAW is not that; more of a background program. That is why AM RAW's ratings can fluctuate from 0.3 to 1.1 on any given week.
Also do you believe WWE and Nielson's claim that "only 30% of people who watch 'Raw,' our flagship show, will also watch 'SmackDown' on MyNetworkTV and vice versa."
When they first gave that statistic five years ago, yes, it was true. At that time RAW and SmackDown had mostly distinct audiences and the programs were tailored to separate audiences. As time has gone on, ratings for both shows have declined because they tried to make the viewers of one program the viewers of the other. In other words, the WWE sacrificed the unique identities of each program to create a program with more "mass appeal". The problem is the audience that is part of that mass is smaller that the two different audiences that watched RAW and SmackDown when they have different styles and tones.
Now why all the past tense? Because although WWE Chairman Vince McMahon often totes this "30% shared" figure, that figure has not been retested in recent years. Most likely now you'll find a much higher crossover (close to 70% mark) within that smaller audience. That is why the brand extension has become the wrong execution of the right idea. Having distinct brands for different audiences means you can get lots of diverse customers. Having the relatively same program and trying to give it to different audiences means that one or more audiences will be eliminated.
The people watching the WWE are far different than the ones watching five years ago. At that time, the average age of a viewer was 29. That number has come way down with so many older fans leaving and a plethora of children backfilling the need (though not at the same rate as attrition).
While the WWE has been changing its clientele, one person has been a tremendous success for them, as Eric L points out:
Those sales figures are one of the reason I'm shocked to see the IWC going nuts about how ungrateful Jeff Hardy is for not having signed yet. He's very smart for holding out as long as possible and seeing how high the WWE will go.
FirstsMcPain was quick to agree:
Eric L, you just made the best point about the whole Jeff Hardy situation that I've seen anywhere on this website. Kudos to you, sir.
And Guest#0056 finishes up the point:
Exactly what I've been thinking Eric, kudos. All the morons and marks are up in arms spouting off about "Jeff wanting to quit to do drugs" and all this bullshit, when a quick glance at the sales figures shows Jeff being a huge merch seller and a major player money-wise pretty much every week for the last YEAR. Contract negotiations can be complex and take a long time to be settled.
Has anybody considered the possibility that maybe Jeff has stalled on signing a new contract because he feels his huge ability to draw isn't reflected in his position on the card? He is massively OVER and with the right push you feel he could be even bigger. He was pushed big in 2008 after returning from suspension, but on the same hand he also jobbed in a LOT of title shots, de-railing a lot of momentum, and when he eventually received the title it was at one of the lesser-watched PPVs and was taken off him a month later.
It could be something personal like card position, but it may be more on the first point you were making. Perhaps Jeff Hardy just wants a higher cut of his merchandise sales since he moves so much of it. The WWE is notorious of their secret equation to come up with the split on merchandise figures, so maybe all Jeff Hardy wants is some transparency and concrete numbers so he knows what he is getting.
When Jeff Hardy was suspended last, he still remained in the Top Ten. Not even John Cena could remain in the Top Ten when he was out with an injury (though he did last several weeks). Jeff Hardy is aware of that and is most likely just looking for his fair shake.
Outside of Jeff Hardy, the other big topic was on the WWE and piracy (per usual). The WWE's Hulu page looks to have been up for longer than noted by the Journal (as Supro and Anonymous Smart Mark pointed out), but the Hulu page is part of the WWE's program to combat piracy. Tals makes another point around this:
Another problem WWE has with piracy is that Smackdown is taped a day or two in advance so it can be aired in other countries before it airs in the US, these copies meant for countries like Australia end up on the internet before it airs on US TV.
And vice versa. RAW and ECW air in the US before a number of other countries, so it works the other way as well. The WWE may want to consider stepping up the Hulu page and just maintaining full episodes of all their programs on there. At least then they'll continue to have the advertising revenue from the site.
Apple learned long ago that if you make something that is easy to steal even easier to buy, people will buy it. Despite thousands of websites and file sharing services out there, Apple is approaching 7 billion songs sold at the iTunes store (almost $7 billion in gross revenue). Buying at an iTunes store is actually now easier than trying to find illegal shares, so they are making money at it.
The WWE could take a page out of Apple's book and make getting a copy of their program though Hulu, WWE.com, YouTube, or wherever they can make money easier than a bit torrent site. If they do that, than they will have a new revenue stream and not spend so much trying to combat technology.
Plenty more was written, so be sure to take a look. And of course, a week would not be complete without a good dose of JP Prag's own HIDDEN HIGHLIGHTS!!
This concludes Issue #84 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.
Posted By: ScottishDragon (Registered) on April 29, 2009 at 11:19 PM
You forgot to mention that the reason Smackdown did such a horrendous rating was because many of the hot markets, including most of Texas and Portland Oregon, Smackdown was pre-empted because of the NBA Playoffs.
The WWE Ratings have also not decreased in the past five years at the rate you say they do. Ratings have pretty much plateud since 2002 with Raw mainly averaging somewhere between the high 3's and low 4's.
Posted By: Carlos (Guest) on April 29, 2009 at 11:55 PM
You can add Cleveland, OH to the list of markets preempted by the NBA playoffs.
Posted By: Tigerpaw28 (Guest) on April 30, 2009 at 01:36 AM
The problem right now with the WWE's usage of websites is that the programing does not match actual television. Maybe they do this on their legacy site, but on the other pages they have with Hulu, Youtube, Myspace, etc...the clips are old and incomplete. What I and most other fans who search the internet for clips want to see are complete matches and even fulls shows. Most people who would use a website for clips do not have cable or satellite, and therefore rely on the internet to keep up-to-date knowledge of the WWE storyline.
If WWE wants to stop piracy of their programs, they should offer a better way for customers to collect them.
Posted By: Drock77 (Guest) on April 30, 2009 at 04:48 AM
Is Smackdown's new focus on wrestling and workrate likely to lead to any change in the ratings? Did, for example, the fall 2002/Smackdown Six period - an IWC favourite era - actually mean anything to enough people to affect the ratings in any way?
Posted By: bluesteel (Guest) on April 30, 2009 at 07:00 AM
ScottishDragon:
HDNet is a privately owned station and does not release ratings information.
Just as ROH has never released their PPV buys that I can find.
I am an ROH fan, so I wish these were available, but unfortunately they are not.
Posted By: Bonto (Guest) on April 30, 2009 at 02:10 PM
this has to be the dumbest idea for a wrestling column ive ever seen on this site. of all wrestling fans, i'd wager about 25% are members of the IWC. Of that 25%, i'd wager that less than 5% give a shit about anything covered in this column.
Posted By: the voice of reason (Guest) on April 30, 2009 at 02:23 PM
this has to be the dumbest idea for a wrestling column ive ever seen on this site. of all wrestling fans, i'd wager about 25% are members of the IWC. Of that 25%, i'd wager that less than 5% give a shit about anything covered in this column.
Posted By: the voice of reason (Guest) on April 30, 2009 at 02:23 PM
hmm... looks like it's up to column 84, so that is over a year and a half. I'd guess enough people are probably interested. Personally, i've probably read every hamilton ave since its debut on 411 and have enjoyed it every week.
Posted By: Brett (Guest) on April 30, 2009 at 03:45 PM
I never realy read this report and this is the first time I've clicked on this.
Great report, a lot of factual analysis of wrestling as a business (because, at the end of the day, it is a business). I like your focus on thios.
Keep up the good work.
Posted By: lilwayne1 (Guest) on April 30, 2009 at 05:03 PM
this has to be the dumbest idea for a wrestling column ive ever seen on this site. of all wrestling fans, i'd wager about 25% are members of the IWC. Of that 25%, i'd wager that less than 5% give a shit about anything covered in this column.
Posted By: the voice of reason (Guest) on April 30, 2009 at 02:23 PM
---------
Yes, but thats only because the other 95% are fucking morons who spout off their shitty opinions without knowing or understanding a single fucking thing about the business itself.
This column isn't perfect, but its excellently researched, relies (for the most part) on facts rather than biased opinion and uncredible gossip, and is a better read than pretty much anything else on this site. Give me The Hamilton Ave Journal over garbage hacks like Aaron Hubbard and Samuel Berman any day.
P.s. JP, I noticed you made reference to Shad, DJ Gabriel and Jeff Hardy discussing contract rumours on social networking sites - I just wanted to point out that the post by Jeff was fake and done by some impersonator (many wrestlers have had problems with random people pretending to be them on facebook and myspace).
The closest thing to an official page for Jeff is http://www.myspace.com/thehardyshow, which Matt Hardy confirms is run by a friend of theirs. This page even has a blog entry up discussing the "Fake Jeff on Facebook", where it says;
"ALL MATT, JEFF and BETH's are FAKES on facebook!! none of them have a page over there!!!!!"
It's always worth not trusting ANY supposed blog by a wrestler unless you can confirm that it is from their official page and is really them. Keep up the good work homeboy.
Posted By: Guest#2886 (Guest) on April 30, 2009 at 05:04 PM
Ratings:
I think ratings news should take into account that, according to the web site TV by the Numbers ratings on Thursday last week were down huge on every net. NBC's lineup hit season lows. Hell's Kitchen was down a million viewers. Survivor was down large, especially in it's demo. When taking Smackdown's rating into account the steep falls across the board should be noted.
Posted By: Eric L. (Guest) on April 30, 2009 at 07:07 PM
I would not pay voice of reason's comment any mind, as it was quite mindless.
Thank you for providing this information, it is appreciated!
Posted By: CanadianCrippler (Guest) on May 01, 2009 at 05:41 AM
I predict a big rise in Smackdown's rating next week. Don't think that's really sticking my neck out either...
Posted By: Ryushinku (Guest) on May 01, 2009 at 06:32 AM
"Ratings:
I think ratings news should take into account that, according to the web site TV by the Numbers ratings on Thursday last week were down huge on every net. NBC's lineup hit season lows. Hell's Kitchen was down a million viewers. Survivor was down large, especially in it's demo. When taking Smackdown's rating into account the steep falls across the board should be noted.
Posted By: Eric L. (Guest) on April 30, 2009 at 07:07 PM"
Wouldn't that hurt TNA and not SD! This week though, with the barn burner that was the Bulls/Celts game last night, I'd expect TNA to drop below 1.2 for the first time in awhile.
Posted By: elgrannoche (Guest) on May 01, 2009 at 11:04 AM
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