The Hamilton Ave Journal 05.13.10: Volume 2 – Issue 137

Posted by JP Prag on 05.13.2010

Did the WWE have a highly profitable first quarter, or has TV-PG started to work against them? What shenanigans are going on inside WWE headquarters that allow a number of corporate positions to open up? Is RAW any more successful without iMPACT on the air? 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 137

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 Q1 and WrestleMania Results

At first glance, the WWE has reported another banner quarter. Revenues increased 28.7% from $107.8 million to $138.7 million while Operating Income increased a whopping 123.4% from $16.7 million to $37.3 million. Of course, this year WrestleMania took place in Q1 while last year it was in Q2. Additionally, the WWE saw a restructuring charge of this year that has no comparable number in the prior year. Removing these items, Revenue increased just 1.9% to $109.9 million. Operating Income, however, still increased 35.3% to $22.6 million.

All together, excluding WrestleMania and other items, the operating margin increased from 15% to 21%, showing the WWE has once again cut costs while only slightly increasing revenue. How did they do it? Let's break it down:

Live Events and Venue Merchandise grew 7.1% from $22.6 million to $24.2 million, despite having 12 fewer events this year. The difference was made up by a 20% increase in average attendance in North America to 7,300 per show, even while ticket prices dropped 3% to $32.47 per head. As such, it would appear that more people are bringing their entire families to shows, thus increasing the attendance and dollar figures here. The costs to produce these shows, however, increased from a 66% COGs rate to a 68% COGs rate, most likely due to additional promotions costs and talent fees. As such, it truly was revenue that added to the bottom line this time, not a cost cut.

Pay-Per-View decreased 1.5% from $13.6 million to $13.4 million. Here are the PPV buyrates for the quarter:



As can be seen, both events actually went up in buyrates while the WWE also increased the cost per event by $5. So how did the total dollars go down? Well, the WWE has been expanding their PPV in other markets and Mexico became the second largest buyers abroad behind the UK. As such, given exchange rates the additional buys in Mexico did not equate to more dollars.

The costs of producing those PPVs did decrease from 37% of revenue to 31%, giving PPV a Profit Contribution growth of 7% from $8.6 million to $9.2 million. So despite the loss in revenue, the WWE made more money on PPV than last year.

Not all exchange rates worked against the WWE. If it were not for favorable rates, the WWE would have had a less stellar quarter than reported. From the press release:

Excluding the impact of WrestleMania XXVI, revenues from North America decreased 3% and outside North America increased 19%. In addition, there was an approximate $2.1 million favorable impact from foreign exchange rates.

Obviously, the rest of the world is becoming much more important to the WWE while the domestic market continues to soften. The WWE has been finding its fastest and largest growth abroad and looks to be continuing that pattern, though Mr. McMahon last week said he did not care where the revenue came from.

Television rights fees increased 18.1% from $24.9 million to $29.4 million. Leading the way was SuperStars, accounting for the vast majority of the growth. Additionally, the WWE renewed several contracts this year to more favorable rates. As such, the cost to produced television only increased 1.8%, resulting in COGs margin of 57% this year compared to 67% last year. In other words, almost all of the additional revenue went straight to the bottom line.

Licensing was basically flat at $19.9 million. The new Mattel line brought in a 16% increase in sales while video game sale dropped 8%. While the WWE does not want to see any segment drop, their direction has apparently changed their portfolio of products sold.

This audience shift worked against them in home video where revenue dropped 17.4% from $9.2 million to $7.6 million. The margin on videos went up slightly to soften the blow, but at the end of the day profit contributions dropped 28.3% from $5.3 million to $2.8 million.

WWE Studios also booked $3.4 million this quarter compared to $3.7 million last year. WWE Studios only books revenue after all other film cost are covered, so this only reflects activity from older titles.

WWE.com and WWE Mobile were also soft with an 11.6% decrease in revenue from $6.9 million to $6.1 million. Despite this, profit contributions only dropped 3.8% from $2.6 million to $2.5 million.

SG&A costs saw a large 16.5% decrease from $30.9 million to $25.8 million. For the second quarter in a row, SG&A as a percentage of revenue dropped. Last year this was at 29% compared to 23% this year. As such, the WWE has got their costs in line since the SG&A dropped a significant amount with revenue. Now that revenue is increasing, this is only beneficial to the WWE's bottom dollar.


After all taxes and payments were accounted for, net income increased from $10.3 million to $24.7 million. More importantly than that, cash from operations was finally more than the dividend payout ($20.7 million). After the dividend, the WWE was able to add $4 million in cash to the balance sheet. This is the first time in years that the WWE has actually made enough money to payout their dividend without having to dip into cash reserves. With that, the WWE has reached a new level of stability.

While many people will not agree with or understand the WWE's business practices, they have obviously been working out for the company. While some areas like home video are soft, the international expansion, family entertainment experience, toy lines, and additional programs have bolstered all parts of the company.

With costs under control, growing revenue is now the name of the game. Showing a increase in this economy is impressive no matter what, even if the bump up is less than the rate of inflation. The WWE is in an extremely strong position and are going nowhere--except to more profitable ventures.


Newsbites

Some items of note in the rest of the wrestling business world:

Reader Ben wrote in with:

I mentioned a few months ago that the Hulkamania and TNA tours of Australia failed because the WWE has a dedicated Sydney office handling the region. However, the WWE shut down that office only a few weeks ago and will be using the office in Singapore to cover the whole Asia-Pacific region. Since Australia was I believe 1 of, if not the only region who increased their profit in 2009 this seems like a boneheaded move to me.

This was most likely just a cost-cutting measure as only the USA and Japan now have dedicated offices that cover just one country. Australia probably does not warrant enough revenue right now for a dedicated office. Even though Australian revenue may be flat or even up, revenue in other APAC areas is also up significantly. As a percentage of APAC, Australia may no longer rank high enough to have their own team. Of course, that may change if the WWE sees revenues dropping in the near future due to poor logistics.

WWE COO Donna Goldsmith will be presenting at in the 38th Annual J.P. Morgan Global Technology, Media and Telecom Conference. The event takes place on Monday May 17, 2010 in Boston, MA. The Journal will report if Ms. Goldsmith offers any new or pertinent information.

Also inside WWE corporate headquarters, Irv Muchnick is reporting WWE Executive Vice President and General Counsel Jared Bartie has been let go after receiving a sexual harassment complaint against him stemming back from WrestleMania weekend. The woman in question has also apparently been fired, but not for lodging in the complaint. Instead Mr. Muchnick contends that she was let go "after being seen performing a sex act on yet another subordinate male employee, on the work premises during business hours."

While those positions have opened up, the WWE does have other job offers like this one they posted on Variety:

The VP, Talent Brand Management is responsible for building and managing WWE's Superstar brands. S/he will be charged with setting the strategic direction and guiding the team with the development of talent brand marketing initiatives for the company. The VP, Talent Brand Management will have full accountability for:

* Establishing clear brand strategy and positioning for each designated Superstar
* Managing external agencies representing WWE Superstar brands
* Evaluating opportunities and making recommendations for Superstars, based on brand strategy
* Ensuring key messaging for both WWE as well as Superstars is well represented in the marketplace
* Creating efficient programs and campaigns to broaden awareness among sponsors, media, and investors
* Developing marketing execution strategies across all platforms
* Clearly communicating messaging and brand positioning to the internal organization
* Partnering with key internal departments including, but not limited to: Marketing, Sponsorship, and Consumer Products
* Full budgetary and P&L responsibility

Those who have left the WWE also have ambitions of their own. Former creative team member Chris Gough announced that he is starting his own independent wresting company entitled "Metro Pro Wrestling". Most interestingly, Mr. Gough has already set up television distribution deals with the following stations/networks:

* Time Warner Cable (Missouri/Kansas) Channel 30 Standard Def
* Time Warner Cable (Missouri/Kansas) Channel 1030 HD
* Comcast (Missouri) Channel 44
* Comcast (Kansas) Channel 68
* Sunflower Cable (Lawrence, Ks) Channel 37

TNA has also been making moves as their programming is available once again in the Middle East via Al Jazeera Sport. Tweets TNA President Dixie Carter:

"Good news for TNA Fans in the Middle East, TNA iMPACT! returns to the region starting May 23 on Al Jazeera Sport."

TNA Executive Producer Eric Bischoff was recently interviewed by Monday Night Mayhem. When asked about TNA moving back to Thursdays, Mr. Bischoff had this to say:

"First, I don't recall fans en mass telling us not to go to Monday nights. On the contrary, I remember quite a bit of enthusiasm & energy, just because it was a chance to create competition & provide an alternative. There were a lot of fans that spoke out and said it was the wrong decision, but there was a lot of fans that felt the other way. What happened after the move (as we did some research, along with Spike TV), it was determined that while there were fans who enjoyed the competition, there was also a lot of fans that weren't able to check out both. It was a problem for them having to switch back & forth. Unlike the WWE, TNA does not have a lot of other programming, so there's only one TNA vehicle out there, and putting it head-to-head made it difficult for some fans of TNA. As far as WWE being too big to compete with, they're a monster. We never intended to compete with WWE, we intended to position ourselves on Monday night, because that's where the traditional wrestling fan audience is, and we thought that would be a great way to gain exposure for the TNA brand. That's why we went to Monday nights, not to compete."

While TNA may be Spike TV's favorite wrestling-related programming, it is hardly their only one. "Half-Pint Brawlers" will premier on the network on Wednesday June 2, 2010. From the press release:

Spike TV explores the outrageous world of little person wrestling with "Half Pint Brawlers," a new unscripted half-hour, six-episode series premiering Wednesday, June 2 at 11:00 PM, ET/PT. This original series chronicles the often-absurd yet astonishing adventures of one of the most extraordinary performance wrestling groups in the country who will do just about anything inside and outside of the ring.

A combination of "Jackass" and "Little People, Big World," the series will be seen through the eyes of these extreme little people, "The Brawlers." These self-proclaimed hardcore little person wrestlers, led by gregarious owner Puppet "The Psycho Dwarf," entertain crowds in venues all across the U.S. with their unique brand of wrestling prowess.

While this is a limited series, Spike may be interested in picking it up full time if ratings prove decent enough. Please note: this is completely unrelated to the little person wrestling league that Eric Bischoff and Jason Hearvy are trying to start.

Not out of the legal woods yet, the WWE has been named as a third party defendant in a case between two motor house companies. Star City Coach Limited represented the WWE and specifically Triple H and WWE Executive Vice President of Creative Development Stephanie McMahon in the construction of a personalized motor home, which was put together by Music City Coach. Music City alleges that the bus cost $325,000 to construct and that Star had not paid $216,000. In the suit, Music City states that a Star employee represented the WWE, Triple H, and Ms. McMahon and that made requirements that added to the cost, and thus the difference.

US Marshals seized the bus on February 4, 2010 until either the balance is paid or the case is resolved.




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 time we should be able to see patterns, trends, and anomalies.

For the week ending Wednesday May 12, 2010, here are the current standings of the shows:







Analysis:

With iMPACT out of the way, Monday nights can once again turn to RAW. And as they did so, people have seen that RAW scored another 3.05. This is first time since October 20-27, 2008 that RAW has had a rating of below 3.1 for two weeks in a row. While those within TNA and SpikeTV may have felt that the ratings on Monday nights were due to the competition from the WWE, the real problem both shows faced was the competition with Dancing with the Stars and the rest of the Monday night lineup. Spike TV's replacement programming (an airing of Star Wars: Revenge of the Sith) got just a 0.44 rating.

RAW is not the only show suffering in ratings as SuperStars scored an all time low 0.28 rating. However, that was mostly because the show was delayed due to the Chicago Cubs game going long, forcing most of the regular viewers to miss the program.

SmackDown is already starting to suffer from preemptions in some markets as the show two weeks ago scored a 1.7 rating. Some are reporting that this is the lowest rating for SmackDown in years, but that is not so as the show scored the same rating March 29, 2010. Additionally, SmackDown had a number of other 1.7's within the last year and even had a 1.6 on June 29, 2009.

With the move to Thursday, iMPACT's ratings this week are still showing the last Monday show. Readers of the Journal will be happy to note that the new interactive historical ratings chart above will automatically update with the new ratings of all shows including iMPACT and SuperStars as they come in.




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 selling items for the WWE? WWEShopZone.com releases a list of varying numbers to show what is selling for them:

1. Randy Orton Lobotomy TOP ROPE T-Shirt ($45.00)
2. John Cena Never Give Up T-Shirt ($25.00)
3. John Morrison Sunglasses ($12.00)
4. John Cena Never Give Up Sweatband Set ($12.00)
5. John Cena Never Give Up YOUTH T-Shirt ($22.00)
6. John Cena Never Give Up Baseball Cap ($20.00)
7. Randy Orton Lobotomy T-Shirt ($25.00)
8. John Cena WrestleMania XXVI Autographed Commemorative Plaque ($99.99)
9. WrestleMania XXVI 3-Disc DVD/Event T-Shirt Package ($54.95, on sale $29.99)
10. Shawn Michaels Tribute T-Shirt ($25.00)
11. Triple H Return to Fear T-Shirt ($28.00)
12. Miz I'm Awesome T-Shirt ($25.00)
13. Hart and Soul: The Hart Family Anthology DVD/T-Shirt Package ($28.99)
14. WrestleMania XXVI 3 Disc Collectors Edition DVD ($34.95, on sale $24.99)
15. John Cena Never Give up YOUTH Basics T-Shirt ($9.99)
16. Chris Jericho WrestleMania XXVI Autographed Commemorative Plaque ($99.99)
17. WWE Heroes Comic Book-Series #1- Jerry Lawler Drawn Cover ($5.00)
18. John Cena Never Give Up Basics T-Shirt ($14.99)
19. CM Punk Salvation T-Shirt ($25.00)
20. WWE Championship Spinner Toy Belt- Mattel ($14.99)

While the list's personas changed very little this week (John Cena with 7 items, Randy Orton with 2, Triple H with 1, Mix with 1, Shawn Michaels with 1, and John Morrison with 1), there were some slight updates. For instance, CM Punk returned to the list after just a week away, showing some staying and buying power of the straight edge superstar. Also making a rare appearance is Chris Jericho, who has not appeared on this list in years. More importantly than that, the item Mr. Jericho came on with was a $100 plaque, a strong high ticket, high margin item. John Cena also had one of these plaques on the list, making this one of the highest price per item averages of any top selling list ever covered by the Journal.


TNA sometimes releases a list of top selling items on ShopTNA.com. According to the site the top selling items were:

1. Don's Insane Brown Bag Special ($20)
2. Don West's Vintage Celebration ($59.97, on sale $6.99)
3. Jeff Hardy Enigma T-Shirt (Glow In The Dark) ($19.99)
4. RVD - Video Wall T-shirt ($19.99)
5. Mr. Anderson People Are Fake T-Shirt ($19.99)
6. Jeff Hardy Enigma Stainless Steel Pendant ($9.99)
7. "Hulkamania" T-shirt ($19.99)
8. Hulkamania Bandana ($9.99, on sale $7.99)
9. Hulk Hogan - Change T-shirt ($19.99)
10. Cross The Line Triple Pack 3.0 (Triple Threat) DVD Set ($24.99, on sale $19.99)

The move back to Thursdays did not equate to having time to update this list.




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 upcoming weeks? The Personal Journal answers that question.





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, your Hindu Friend was quite wound up:

I have been on the column for weeks telling you TNA's ungodly ratings are not a good thing.

Week after week, you said to relax and this whole 'three year deal' is always there for them.

Well, this week clearly shows that SpikeTV is none too happy with TNA, whether all your 'mumbo-jumbo' wants to say different.

Well, Hindu Friend, the Journal will tell you to relax again. That "mumbo-jumbo", as you call it, is fixed revenue streams and long term contracts, things much more important than a timeslot. Even more than that, you appear to have missed the second half of Spike TV's press release on the move back to Thursday (and note that it was Spike who sent this out, not TNA): Spike picked up a second television show from TNA. That not only shows that Spike is happy with TNA, but they have now helped TNA because it is more revenue directly to TNA's pocket. Guest#9853 continues:

Then you haven't been reading the Journal very well. The Journal never once claimed the situation was great for Spike.

What he did say was that Spike was contractually obligated to pay TNA for programming. Nothing has changed because of any of the jumps in time slots for Impact.

In fact, the parts of your statement don't really connect. Even if Spike was unhappy with Impact's ratings on Mondays, that doesn't mean that the contract terms changed, nor that they are not enforceable.

What the Journal did say was that low ratings would not destroy TNA as a business. The very fact that Impact was moved (there would be nothing to air if not) means that it is still being produced means that TNA still exists as a business entity.

The Journal has also stated that the long term deal gave TNA stability and the vital ability to project revenues. Nothing you said at all contradicts these points.

Really, there is nothing wrong with disagreeing and objecting. Bringing a cogent argument would really reinforce what you have to say.

Tossing stuff against the wall and hoping some of it sticks is just silly and weakens the main point in the eyes of others.

Guest#1386 in particular wants to follow up on that last point:

In the three things you have said, you haven't shown where TNA is hurt by all this. While this is not a good thing, it really isn't a bad thing.

As long as their costs are less than their revenues, TNA is kind of bulletproof while the contracts are in place.

Spike has to pay them, so they are going to show Impact.

The Journal has said low ratings aren't good, but that they don't come into play until it is time to re-up the contract. For a three year contract, that is plenty of time to make business changes.

What is really bad for the future of both parties is their jumpiness. Changes don't really show their effects as fast as these guys seem to think.

What is up with the desperation to seem right? That really can't be helping your life.

The timeslot shifts show the lack of consistency in TNA and Spike. Both are completely reactive entities instead of planning for the long term. This is Brett's point:

I don't understand how TNA was supposed to succeed with how Spike handled their TV situation. In 9 weeks they moved timeslots twice. Usually a show loses part of its audience after a timeslot shift. Plus, they couldn't make up their mind if they were gonna have a replay, plus the ReAction deal.

It seems as though Spike had no long term plans, they were just shifting the time of one of their highest rated shows to see if it would work. Spike and TNA are perfect for each other, because both are short sighted.

Perhaps so. Spike wants to defeat USA and are trying some quick action things to see if they get what they want. Thus far, it has not worked out well for them.

Going back to the subject at hand, V was more in line with your Hindu Friend, but for different reasons:

I couldn't agree more, regardless of the contract TNA has with Spike without ratings there is no company. The free TV show is the first point of sale contact with the audience, who imagines that a customer will buy a PVV/T-shirt/DVD/house show ticket without first watching on TV. It's basically a two hour advert for TNA to say "come and buy our stuff", and with a dwindling audience the return percentage is inextricably linked.

As regards the "Monday night wars", it isn't over, in fact next week will be the start. WWE will have no excuse for there dismal drop in viewers(which seems to get over looked- understandable in comparison to TNA'S), and TNA(specifically Hogan/Bischoff),will have no excuse to at least regain lost numbers from pre March.

As you saw this week, RAW has no way to be overlooked at they were alone. To your other point, Guest#0218 responds:

Sure there is, just on sheer dollars alone. Any merchandise they sell is just additional revenue, but they don't necessarily need that money to survive.

That show is free to you, but not to Spike. They and others around the world pay for the shows they air. That money alone should support a well designed business.

Think about this: Most televisions shows do quite nicely without selling merchandise. I don't see any Grey's Anatomy t-shirts, for instance.

You are right in one respect. While TNA does not gain in their contracts immediately when ratings increase, they can potentially sell more merchandise.

You and your Hindu Friend don't seem to distinguish between being safe enough to have time to plan out well thought out changes and needing to make knee jerk reactions in order to survive. Very important difference.

Yes, the television show is a product that is sold to Spike and other networks around the world. TNA's main customers are networks, not people. People who buy tickets to shows, merchandise, and PPVs are additional revenue. Their model is quite different from the WWE's out of necessity. The important thing to take away is that because they have a show they should be safe for the next three years just from the revenue alone. Still, the conversation continued with V:

But if your not prepared to sample TNA at zero cost you're not going to pay to sample are you?, By returning Impact to Thursdays Spike has shown it's not willing to tolerate low numbers, even with its contract obligations if Spike finds content that out draws Impact (in any slot/day) it will happy shunt TNA into a graveyard slot, further reducing TNA's ability to project itself. This doesn't mean I advocate on the hoof writing or shock booking, but a medium to long term timetable that enables the first steps to growing the company- the first of which is to retain existing customers before attempting to gain new ones. The TV contract is a double edged sword as whilst it provides security, that same security is a huge cushion under TNA's arse negating any need or desire to work for the money because they'll always get paid no matter what.

Shunt TNA to a terrible timeslot? Guest finishes this one up with the final word:

Well Spike isn't about to put Impact in some viewing twilight zone. Even on Mondays, Impact was going as well or better (depending on if it was live or pre-taped) than Spike's average rating.

That was one nice thing about this "war", we got information here on quarter hour break downs and the average rating of each station.

Even if Impact was doing poorly on Mondays - which relative to Spike it was not - history still showed that it did fine on Thursdays. So Spike knew they had something of value.
However, moving Impact affected two time slots, Monday and Thursday. The replacement on Thursday was not doing as well as Impact used to do. This may have been a motivation.

Just for the record, Spike TV's average primetime rating two weeks ago was a 0.5. That means TNA has consistently outperformed almost everything on the network and actually help set a higher rating with its first run and replay show. Yes, Spike may get some hit show, but it if it is doing well in the timeslot it became a hit, why would Spike move it into TNA's slot and move TNA to somewhere else?

Leaving behind all the TNA stuff, USAUSA1 wants everyone to know:

Marco Corleone reported on luchablog.com that the MTV show will air on June 19th.

Good information. Thanks!

Going back to the WWE, the annual stock holders meeting brought up the subject of how much the WWE TV-PG initiative is helping the company. Says Brad B.:

You can do PG in an entertaining way without pandering and removing real-life language from the programming.

Get it now? I hope so because explaining what is so simple & obvious every time an IWCer defends the PG nonsense is getting quite tiresome.

Note that this was in response to someone else who lacked capital letters. Guest#1150 was also in line with this thinking:

Well defending PG and the way WWE executes it are two different things.

It can certainly be well written. The Chuck Jones Looney Tunes were written so that kids could enjoy it while still having many little jokes that the adults could enjoy.

One of Hollywood's growth areas have been in children's films. I believe it has been said of Pixar movies that adults could watch it and not hate the experience. Some can even enjoy it.

PG can be entertaining if written well. In fact, something isn't any more entertaining just because it isn't PG. Well, the added skin is nice, but I am an adult with internet access. In comedy they say that if you have to work blue, you can't really work.

Closer to home in the wrestling world, CM Punk has shown that PG can be done in an entertaining manner. He has taken his ROH Straight Edge routine and made it PG without dumbing it down.

This is my biggest objection to how WWE is booked. CM Punk, Jericho, and Michaels have shown that PG can be entertaining if booked and written well. But WWE does not have the will to do so.

Billzilla, however, has the counterpoint:

Here's the bottom line- it works. If you want your voice to be heard, spend more money. The attitude of the smart wrestling fan is barely tolerated by the WWE- it's more of an inconvenience to them to have to pay fan service to the "smark" than it is a reliable stream of revenue.

Like it or not, children and their un-offended parents spend much much more money than you and I do. If what you and I want to see in wrestling was more profitable, they'd be doing that.

I'm not saying it's right or wrong, but if you can't stand it, you should probably watch something else, at least until culture changes enough to the point where the top company in the business sees you and I as its bread and butter.

But understand that every single promotion that has seen smarks as its bread and butter has either been forced to change (WWE) or died a horrible painful death (literally everyone else).

True, while many people do not enjoy the WWE's product, their methodologies have worked to their benefit for the most part. Even with ratings half of what they were ten years ago, the WWE makes more revenue and profit today off their TV shows in one year then they did from 1995 to 2000 combined. Chico is not convinced, though:

"For many of them, though, Ms. Wilson said those who watched in the Attitude Era have grown up and have kids of their own. Because of that, they want a PG product so that they can enjoy it with their kids."

More Vince telling the fans what they want instead of the other way around. Those who watched in the Attitude Era want to enjoy it with their kids? How about keeping it edgy and then having a disclaimer and a rating at the start of the show so parents can choose to not allow their kids to watch now? If this is his excuse for going PG now, then why didn't he do that before the Attitude Era began and not let it change into the Attitude Era and kept it PG back then with the reasoning that those who watched in the 80s and early 90s wanted to enjoy it with their kids so it has to stay PG?. I'm not buying his excuse.

And you should not. What Vince McMahon is saying today is just the company's current direction. They will change with the times when they find another way to be equally or more profitable. Guest#2040 covers this point:

PG is the way to go now for the WWE... in the near future they will go back to TV 14.... so you fans need to stop your bitching and moaning...

While the TV-14 language is not encouraged in these pages, your argument is valid, as is Doc's:

I honestly have no problem with the PG environment, although the extremes they've taken to are inane. However, because of the negative press wrestling received due to the whole Benoit thing, they are trying to get more mainstream and trying to get critics off their backs for awhile. This move will not be permanent. The demos will change again. Ride it out or wait till they do.

And Guest#4384 has the final say on this discussion:

If anything, Vince fought changing to "Attitude". It was Shane who pushed for the move and it wasn't until the WWF had its back to the wall that McMahon made the change.

Vince isn't telling the customers what they want. He is telling them what he is selling.
Don't like it? Watch something else or start a new federation.


Plenty more was written, so be sure to take a look. And if you enjoy the Journal, why not bookmark 411mania.com and make it your home page? You can do that by clicking here.




This concludes Issue #137 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.

Till then!