www.411mania.com
|  News |  Columns |  TV Reports |  Video Reviews |  Title History |  Hall of Fame |  News Report |  The Dunn List |
SPOTLIGHTS  SPOTLIGHTS
MOVIES/TV
// Irina Shayk Shows Off Her Killer Curves At Cannes
MUSIC
// Kanye West and Jay-Z's Watch the Throne 2 Confirmed
WRESTLING
// Brooke Hogan Says Hulk Didn't Know She Was in Talks With TNA
POLITICS
// Obama Leads In Florida, Ohio, & VIrginia
MMA
// 411's MMA Roundtable - UFC 146: Dos Santos vs. Mir
GAMES
// Castlevania: Lords of Shadow Sequel Teased


 HOT TOPICS
//  CM Punk
//  John Cena
//  Triple H
//  Hulk Hogan
//  Randy Orton
//  Christian
SYNDICATE  SYNDICATE



411mania RSS Feeds





Follow 411mania on Twitter!




Add 411 On Facebook
 



 
 411mania » Wrestling » Columns



Advertisement
The Hamilton Ave Journal 06.24.10: Volume 2 – Issue 143
Posted by JP Prag on 06.24.2010



THE HAMILTON AVE JOURNAL
By JP Prag

Volume 2 – Issue 143


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 Hamilton Ave Journal

WHAT'S NEWS

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: More wrestling in your home

Realizing that they cannot leave technology behind and stop pirating, the WWE has decided to move ahead with more online content. From the press release:

World Wrestling Entertainment, Inc. and YouTube announced today a multi-year partnership that will make full episodes of WWE "Friday Night SmackDown®," "WWE NXT™," "WWE Superstars" and "ECW®," available at WWE's official YouTube™ channel ( www.YouTube.com/WWE : ).

This marks one of the first times that YouTube will feature complete episodes of primetime television programs on their site.

The multi-year deal greatly expands WWE's YouTube channel offerings, which already has 90,000 subscribers who have viewed more than 100 million WWE videos to date.


As partner agreement with YouTube go, the WWE usually receives a percentage of advertising revenue. Recently, YouTube realized they could lose ground to Hulu and decided to build a Hulu-like service that will allow for full episodes. Much like Hulu, they hope to control how people watch episodes and interlace non-fast forward-able commercials. This would in turn bring another revenue stream to partners like the WWE and continue to expand the online distribution model as an alternative to television.

One of the holdbacks for Hulu is that is not usually available on television and DVR providers that have internet streaming. For instance, TIVO and Samsung have applications for TIVO, but they do not have one for Hulu because of the contract Hulu has with their network parents.

Using TIVO is a way to circumvent that and get additional revenue. Although the WWE has done quite well with upping their rates for their series, they have to continue to expand into future models if they hope to remain competitive.

Still, television has not gone away yet, as TNA is proving. Since television rights fees account for the largest portion of TNA's revenue and bottom line, TNA has been working hard to add additional programming. First up, TNA is revamping the internationally syndicated Xplosion. From the press release:

Total Nonstop Action (TNA) Wrestling has re-launched its one-hour weekly program "TNA Xplosion".

Currently seen internationally, the re-fitted show will feature new and exclusive matches with the TNA Superstars, as well as updates on everything TNA, including coverage of its flagship series "iMPACT!"

"TNA features more talented superstars than ever before in company history, so it made sense to refresh "Xplosion" and make it a more important part of the TNA brand," said TNA Wrestling President Dixie Carter.

In addition to the format changes, "Xplosion" will feature a new announce team, a new logo, graphics and theme music performed by Victory Records recording artist "Taproot".


TNA hopes that the new format will allow them to increase rates as well as sell the show in additional markets. Dave Meltzer is reporting that TNA and Spike would like Xplosion to air in the 8:00pm hour before iMPACT, which would make Thursday nights look like this:

* 8PM: TNA Xplosion
* 9PM: TNA Impact
* 11PM: TNA Reaction


Looking at Spike's website, neither of these shows is set to air on the station. Even though the press release said that ReAction would be starting on July 15, 2010 after iMPACT, Spike TV is showing Jail at the 11pm hour on that day.

If TNA is getting a four block is still complete speculation. As it is, Spike may just be working with their schedule and moving things around. TNA President Dixie Carter has been tweeting recently about talking with Spike programming directors and the division President, so one of the item they may be talking about is the organization of all of TNA's programming.


WWE sued by a Hart

As mentioned in News from Cook's Corner, the Journal is here to explain the situation of the lawsuit between Owen Hart's widow Martha Hart and the WWE, Vince McMahon, and Linda McMahon.

For starters, on June 22, 2010, Martha Hart, the Estate of Owen Hart, and the Owen Hart Foundation sent out this press release:

Martha Hart, the widow of the late Owen Hart, a professional wrestler who was killed in a May 1999 stunt orchestrated by World Wrestling Entertainment (WWE) today filed suit in the U.S. District Court here against WWE, Vince McMahon (current chairman and CEO) and Linda McMahon (CEO until 2009). The lawsuit alleges the WWE and the McMahons used Owen Hart's name and likeness without right in dozens of commercial videos and other materials, violated a contract restricting the use of Owen Hart's name, likeness and wrestling footage, and disregarded Martha Hart's wishes against further association of her late husband's name with WWE following his death. (Mrs. Hart and WWE settled a wrongful death lawsuit in 2000. Mrs. Hart established the Owen Hart Foundation later that year.)

"In the eleven years since Owen's tragic and avoidable death, I have worked tirelessly to disassociate Owen's name and likeness from anything related to WWE in order to protect our children from any reminder of the circumstances surrounding their father's death, and to avoid any misplaced perception that I endorse WWE," said Martha Hart in a statement.


Originally, Martha Hart learned of "Hart and Soul" DVD on March 2010 and notified the WWE on March 25, 2010 that they did not have her permission nor the permission of the estate to use Owen Hart's image, likeness, or name. Since Mr. Hart was featured on the cover and heavily in the video, Mrs. Hart felt it was within her and the estate's rights to block such usage.

As stated in the fifty page suit, Owen Hart entered into an agreement with the WWE in 1996 (that was amended twice) that allowed him to maintain intellectual property of himself and his character up until that point. Any "new intellectual property" created after that point belonged to the WWE, but use of "old intellectual property" remained the right of Owen Hart. At the end of his contract and/or his death, those "old intellectual properties" would still remain part of his or his estate's ownership.

Furthermore, there were many provisions as to how he or his estate were to be paid for use of the old and new intellectual property.

As part of the wrongful death suit brought against the WWE in 1999/2000, Martha Hart contended that the estate still owned those rights outlined in the booking contract. The WWE agreed to an $18 million settlement and that the estate did in fact own the likeness of Owen Hart.

However, the WWE's lawyer Jerry McDevitt disagrees on where intellectual property of the person ends and where the intellectual property of the WWE begins. According to Mr. McDevitt:

"We own the copyright [to footage featuring Owen Hart] and we believe we're fully within our rights under the contract to do exactly what we did."

When asked about the 2000 settlement, Mr. McDevitt said the WWE would not give up its rights it that regard.

So on March 29, 2010, Mrs. Hart brought suit against the WWE in Canada to try to get an injunction against the WWE releasing the DVD. At the trial, the WWE revealed that they had used Owen Hart's video and likeness many times, not limited to:

(a) at least 37 DVDs released by the WWE, with his name displayed on the packaging of 7 of them;

(b) multiple segments of the DVD, "Bret 'the Hit Man' Hart: The Best There is...", including in a chapter to the DVD entitled, "The Death of Owen Hart;"

(c) WWE television programs;

(d) WWE website;

(e) an online subscription service through WWE.com; and

(f) the "WWE Encyclopedia – The Definitive Guide to World Wrestling Entertainment," in which his picture and/or name appears 7 times.


According to the suit, Mrs. Hart would never have approved these uses should she have known about them. She claimed that she is trying to distance herself and Owen Hart's name from the WWE and that by using Owen's name and image that it makes it look like the foundation is supporting the WWE. Since that is not the case, she feels that these uses have caused the foundation irreparable harm.

At the time, there was not enough evidence to have an injunction, so the video was released without problem.

To complicate matters further, the booking contract does state what Owen Hart was supposed to receive for his likeness being used. Mrs. Hart claimed that the WWE has not sent a royalty since 1999 and she has not tried to pursue it. However, those royalties would be:

79. Under Sections 7.2 and 7.3 of the Booking Agreement, the Estate is entitled to 25% of the net receipts from commercial products utilizing Owen's Original and/or New Intellectual Property or its pro rata share of 25% of sale proceeds when Owen's Original and/or New Intellectual Property is utilized in conjunction with other talent ("Royalties").

80. Under Sections 7.5 and 7.6 of the Booking Agreement, the Estate is entitled to 5% of the net receipts from direct sale commercial products utilizing Owen's Original and/or New Intellectual Property or the pro rata share of 25% of such proceeds when Owen's Original and/or New Intellectual Property is utilized in conjunction with other talent ("Direct Sales Royalties").

81. Under Sections 7.8 of the Booking Agreement, the Estate is entitled to 25% of the net receipts from video products utilizing Owen's Original and/or New Intellectual Property or the pro rata share of 25% of the proceeds when utilized in conjunction with other talent ("Video Royalties").


In other words, the WWE has admitted to using the intellectual property containing Owen Hart and has admitted to paying no royalties. This is where Mrs. Hart may have the strongest case. If there is nothing in the settlement (which was not attached to the suit) about the WWE using the videos of Owen Hart, then the WWE could use them so long as they paid out royalties pursuant to the booking contract. Being that they have used videos of Owen Hart and have not paid out royalties, there is something to say.

Whether Mrs. Hart can say that the WWE can or cannot use video or images of Owen Hart without her permission remains to be seen based on the settlement terms.

The question then is why is Mrs. Hart suing the WWE and the McMahons. As the royalties and contracts go back to 1996, it was at a time when the WWE was a privately held company. Linda McMahon signed and executed Owen Hart's contract personally, and Vince McMahon ran the daily business. As such, they are and were the primary beneficiaries of Owen Hart's likeness. Given the span of time, the relationship of the McMahons with the WWE during that time, and the contract terms, it makes sense that they could be found personally liable for the end results.

Mrs. McMahon's senate campaign did not return comment to the Associated Press, nor did Bret Hart respond to the Vancouver sun. However, Owen's brother Ross Hart had this to say:

"If (WWE) exploited (Owen's) name negatively... I can understand, but this really was a documentary about the whole family... It was done in pretty good taste, even by WWE standards.

"Wrestling is really what made Owen famous and successful and such a legend and you can't erase that... As tragic and wrongful as his death was, you can't erase his legacy and what he accomplished in wrestling."


Unfortunately for Ross, he has no say in this because the Owen Hart Estate, Martha Hart, and their children do own the rights to Owen Hart's life story.

While no specific figures were requested, the suit did ask the courts and jury to determine what is owed in back royalties, cover any attorney fees, and enjoin the WWE from using Owen Hart's likeness again without Martha Hart or the Owen Hart Foundation's permission.


Newsbites

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

  • TNA appears to either be planning a trip to India or adding more programming. Tweets TNA President Dixie Carter:

    "Expect an announcement on the TNA stars coming to see all of our great fans in India soon."

    Last time TNA had a promotional tour of India several years ago, they sent Sonjay Dutt as the main attraction. Dutt and fellow TNA stars were able to reportedly draw crowd of up to 4,000, so it remains to be seen if TNA is planning on doing a show there or just another round of meet-and-greats.

  • The animal rights group PETA has joined the fray of people looking to get Daniel Bryan back on the WWE roster. Usually PETA writes the WWE about their mistreatment of animals or accepting advertisers like Burger King, but this time it appears that the group is getting behind the vegan wrestler. The letter also mentioned Tiffany who is a well know vegetarian.


    MARKETPLACE

    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 June 23, 2010, here are the current standings of the shows:









    Analysis:

    Amazingly, for the first time in a long time RAW was able to not only maintain their rating, but actually go up a bit. RAW came in at a 3.52 rating, up just under 3% from the prior week. Being that this was a regular episode with no guest host, this is quite a feat. While some pay claim this is because the PPV was the night before, for the past few years the RAWs falling after a PPV have shown no statistical difference.

    iMPACT, too, almost held on to their rating, dropping from a 1.0 to a 0.99. Their question still remains if they can grow their audience, and that might not as possible with too much programming on in one night.

    SuperStars suffered this week from a shifting timeslot. Being out of place and against iMPACT did not help the show at all. They dropped to a 0.35 rating, a stiff fall of 56% from the prior week. Expect SuperStars to return to its normal 0.8 range this week when the show is back to its original timeslot.


    MONEY AND INVESTING

    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. The Undertaker's Deadliest Matches DVD ($34.95, on sale $21.50)
    2. John Cena Never Give Up T-Shirt Package ($37.99)
    3. John Cena Never Give Up T-Shirt ($25.00)
    4. John Cena Never Give Up Sweatband Set ($12.00)
    5. John Morrison Sunglasses ($12.00)
    6. John Cena Never Give Up Baseball Cap ($20.00)
    7. WWE Red/Blue Reusable Bag ($3.99)
    8. Miz I'm Awesome T-Shirt ($25.00)
    9. WWE Championship Toy Spinner Belt ($19.99)
    10. The Undertaker's Deadliest Matches DVD Package ($59.95, on sale $29.99)
    11. Randy Orton Lobotomy T-Shirt ($25.00)
    12. Triple H Return to Fear T-Shirt ($28.00)
    13. WWE 11 Piece School Accessories Value Pack ($9.99)
    14. The Best Pay Per View Matches of the Year 2009-2010 DVD ($34.95, on sale $21.49)
    15. John Cena Illustrated YOUTH T-Shirt ($9.99)
    16. Sheamus Celtic Warrior T-Shirt ($25.00)
    17. Over the Limit 2010 DVD/T-Shirt Package ($18.99)
    18. Shawn Michaels Tribute T-Shirt ($25.00)
    19. John Cena Never Give up Sweatshirt ($40, on sale $19.98)
    20. Undertaker Deadman Forever T-Shirt ($25, on sale $14.98)


    While last week focused on the Undertaker and John Cena, this week's list focused on... The Undertaker and John Cena. Several people making short appearances fell off the list, but Randy Orton, Triple H, Shawn Michaels, John Morrison, and the Miz all managed to hold on to spots. More interesting than them, though, was the return of Sheamus to the list after winning the WWE Championship. There usually is a direct correlation between these two for a short time, but few sustain in the long run like John Cena.


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

    1. Don West's Vintage Celebration ($59.97, on sale $6.99)
    3. Sacrifice - 2005 ($19.99, on sale $14.99)
    4. Jeff Hardy Enigma T-Shirt (Glow In The Dark) ($19.99)
    5. Bound For Glory 2005 ($11.99, on sale $4.99)
    6. RVD - Video Wall T-shirt ($19.99)
    8. Mr. Anderson.........People Are Fake T-Shirt ($19.99)
    9. Cross The Line Triple Pack 3.0 (Triple Threat) ($24.99, on sale $19.99)


    Nothing to see here.


    PERSONAL JOURNAL

    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.


    EDITORIALS

    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, two weeks of toy and video games talk led to plenty of comments from people like MacDollarz:

    I still say Midway they helped TNA awareness, not as much as people expected. But it did help a bit.

    Now the Toy Biz deal did not really help at all. Mainly at that time because I believe TNA didn't have many name brand talent under contract for long.

    DDP, Hall, Nash, Hardy... these guys were in and out the company and by the time Angle, Christian, Steiner and Booker got there, TNA opted out the contract to sign with JAKKS.

    This time around at least they'll probably move a nice amount of toys and get some good money and help expand the brand.


    Interesting thought, but has a different idea:

    As for Toy Biz... TNA didn't have anything to do with their failure or vice versa. Toy Biz was a tiny company that could NEVER get it's figures into major retailers. Toy Biz ran Marvel Legends, the most successful comic toy line in decades and couldn't properly distribute them. Which is why they eventually had Hasbro distribute their toys. Which led to eventually Marvel ditching Toy Biz all together and going direct with Hasbro.

    Toy Biz didn't struggle to get TNA on the shelf, they struggled to get anything on the shelf. Jakks has a much smarter business model and experience. Which is key. JAKKS has signed, TNA, NWA and NJPW to deals. They KNOW the wrestling figure market. They already have 90% of the molds made. All they need is new heads. It's a shoe-in to be a success.


    Getting on the shelf is the real challenge in any retail business. Just ask all the food distributors how much money they spend every year to get their products on the shelves of supermarkets. Supermarkets don't make money on selling food; they get most of it from fees associated with having the product on the shelves and in the right place.

    Of course, when talking about past successes and failures, that automatically brings up the Midway game, such as Guest#2618 did:

    Midway helped TNA in the long run because dozens of used copies of that game will be lining the bins of Gamestop & FYE games for years until they pull an ET and bury them out in the desert.

    Even if it's only a subtle flick of the eye-- it's like a tiny little advertisement you can't help but see when you're looking for something better.


    Well, that certainly is looking at the bright side!

    When it comes to video game experiments, it seems like the WWE is ahead of curve here. Says Guest#1117:

    I like this test game with THQ and testing the viability of the micro-transaction system. This is the type of exploration that I did not see under Shane McMahon, although in his defense this may have very well started under his watch. I had not felt that gaining more web based revenues was an area they had matured in.

    Since this is free, I assume it will be ad supported.


    In all honesty, the technology may not have been there either. While it is quite possible that some of this will be ad supported, there is probably a bit that will be paid for. Perhaps you have to pay to unlock certain wrestlers or modes? Or maybe you will pay for outfits, music, and the like? It certainly will be an interesting test to watch and the Journal will be keeping its eyes on South Korea.

    Back in the toy binHeartBurnKid takes a closer look at TNA's new figures:

    Love how the Jakks packages are in a six-sided blister. Really drives home just how much of their visual branding TNA lost when they switched back to a traditional ring.

    Not only that, it shows you how much TNA is making rapid changes that their partners are not aware of. Imaging if Nintendo or Microsoft changed one of their standards of the programming language in how games are made or the size of the disc? Their partners need time to react, which is why video game companies always get third party players involved early. The few times they have not done so, the systems have proven to be complete disasters.

    When talking about TNA, though, branding is always a key issue, as Iron Knee points out:

    TNA's name will remain major impediment to their success. First, it tells you nothing about the product. Like it or not, WWE tells you what you are getting with its moniker. Second, it's sixth grade level double entendre, which does nothing to elevate the perception of the company or the product. They'd' do well to select a name that communicated what they were and their mission statement succinctly, i.e. Extreme Championship Wrestling.

    It depends on if TNA thinks there is more brand value in the same given their investment or not. Then again, this is the company that made moving back to Thursday the ultimate spin by saying the "fans demanded it", so they should be able to pull off renaming the company with a similar flair.

    Moving into a little more pure business, Coyotespaw comments on the WWE's stock:

    One thing you forgot to mention in the evaluation of WWE stock is the upcoming election in Connecticut. Regardless of whether or not Linda McMahon wins the senate seat, there will likely be a large amount of speculative interest in WWE stock. While I'm not an expert in the stock market, I would advise avoiding a purchase of WWE stock until after mid-November, unless you want to gamble on the market.

    Coyotespaw did not note if he already owns shares or has an interest in the WWE, so his opinion has to be asterisked with that.

    Stocks are just a reflection of market perception, but Good Robot Cena is concerned with how the market is looking at the WWE:

    This might be a stupid question, but if one assumes Bryan Danielson's firing was a work, is WWE in violation of SEC rules by putting out false news?

    To try to answer this, Darth Mortis chimes in with:

    If this is a work, and they posted the information on the corporate site as if it were real, they might very well be in serious trouble for providing false information to investors.

    If it is a shoot and they post it, then the firing is legit, but they have the option to rehire in the future.

    But have they ever posted hirings and firings of talent on the corporate site before?


    Well, the WWE has posted many firings, including Carlito's most recently. Hirings are generally related to corporate officers and not independently contracted talent, so that is a moot point.

    The only comparison point is a year ago when the WWE released a press statement saying Donald Trump had bought RAW. They almost immediately had to post another article saying it was part of a storyline because that could be something critical to company operations.

    Firing someone, even in storyline, is not critical to company operations so it could not be seen as market manipulation. One would have to show that the news of Bryan's firing led to a change in stock price, and that could not be further from the truth. And this is the point that Guest#2350 brings up:

    I would have a hard time seeing how this would be meant to manipulate stock prices though. I have real doubts that the SEC has enough people that know much about wrestling. They would be hard put to assemble an argument they could defend.

    Leaving the WWE's model behind and talking about TNA again, Dave^G asks:

    With this question of business model flying around I would be interested in the Journal's take on the rumored switch of TNA from PPV to (at least partially) CotC style 'free to TV specials'.

    I know this is just idle IWC gossip at the moment, and TNA's PPV distribution contracts may block any such move in the near future, but in the big IF of the future this were to occur where would the money come down on this? (in your opinion anyway ;) )


    In Issue #103 of the Journal it was written:

    Putting on a PPV has not been an exceptionally profitable process for TNA. Last released numbers have PPV averaging 25,000 buys and maxing out at 50,000 buys. At $29.95 per PPV, at 25,000 buys the show would gross $748,000. From the top, 50% automatically goes to the PPV companies, leaving $374,375 for TNA. The satellite uplink time can cost anywhere from $50,000 to $200,000 and the cost for talent, the studio, catering, and all other ancillary costs puts a large number of these PPVs in the red.

    When it comes down to it, TNA is not dependent on PPV the way the WWE. About 22% of the WWE's revenue and bottom line come directly and indirectly from PPV, but that is not the case with TNA. Instead, the vast majority of their money comes from television rights fees with secondary figures from merchandise and ticket sales.

    Being not as dependent on PPV, TNA can adjust their model to not have as many in a year. Since TNA should focus more of profit then on top line revenue, eliminating or reducing a non-profitable division makes logical business sense.

    As Ms. Carter started above, there are contracts in place that stop them from making any rash decisions; but eventually those contracts have to come to an end. So, how would fewer PPVs affect TNA?

    Well, if there are 12 PPVs that average 25,000 buys as stated above, that is roughly $9.0 million in gross revenue and $4.5 in net revenue. If TNA were to drop to 8 PPVs per year, buyrates would have to increase to 37,500 buys in order to maintain the same level of revenue, an increase of 50%. Is this feasible for TNA? Normally, a 50% increase would [not] seem plausible, but given the low starting numbers that remains in reason.

    Moving down to a bi-monthly model (6 PPVs a year), buyrates would have to increase to 50,000 buys per show, an increase of 100%. While this number is less likely to happen immediately, it is more in line with TNA's long term plans. They should be able to get that many buys if growth projections remain true. It does mean a long period of less PPV revenue, something the company would have to ride out.

    Being private, TNA does not have to report these numbers to anyone and justify their actions, a benefit the WWE does not share. Given that, TNA has a lot of leeway with what direction they decide to go.


    And further in Issue #130:

    Going back to the revenue generation topic, Guest#5459 fills in some additional information on PPVs:

    [Begin Guest#5459]

    PPV is only a small factor in TNA's revenue stream. Most people don't seem to get that, I assume because wrestling fans are conditioned to believe that PPV is the only way to make money.

    It's not. In fact, if anything PPV is going away. It may not be instant, but PPV numbers have eroded away and will continue to for the foreseeable future. I don't suspect we'll see PPVs as we know them at all in ten to fifteen years.

    TNA has to continue to make PPVs because that's where they can run matches without commercial interruption and fans are conditioned to thinking PPVs is where things happen. Carter & company have said several times this is one the reasons they even continue with the PPV format and are looking at ways to move around the concept.

    [End Guest#5459]

    And that is TNA's strongest competitive advantage: they are not locked in to any revenue stream. Aside from television rights, no other revenue stream takes up such a large percentage of the total that TNA could not drop it tomorrow or start a new one. The WWE gets 18% of its revenue from PPV and therefore could not do without out immediately. However, at one point that number was closer to 40%, so the WWE has done a tremendous job of diversifying their portfolio. Nowadays, though, the WWE is slower to adapt and change simply because of the size and structure of their organization. If TNA acts like an entrepreneurial company, they can move quicker and take advantage of new streams before the WWE. If they act like they have the organization and overhead of the WWE, not only will the WWE get there quicker, but they will reap all the benefits before TNA realizes they have lost out on something.


    So the bottom line is this: getting rid of PPVs that are not profitable will automatically boost TNA's bottom line even though it will decrease their top line. Now, if they replace those unprofitable shows with television specials, that may work. The cost of putting on a taped special is far less than the cost of putting on a PPV. If they can get $300,000 per special all around the world (Spike is not going to pay that much for a single episode), then it will be profitable.

    The WWE could never do this because they get close to $5 million for a single PPV. With that, even distributing internationally they will not get that for a one-time program, especially considering what SuperStars costs. For TNA, though, aiming for a much lower number makes television specials a possibility. More importantly, though, is dropping PPVs that do not make a profit. Never build the top line in sacrifice of the bottom.

    Looking at the world in general Guest#6555 wants to know:

    It is possible that some of the percentage conversion from ratings to PPV buys is not from targeting a younger audience, but from the downturn in the economy?

    With the recession and continuing unemployment, people feel less secure in spending large amounts of money on things like vacations. However, people staying at home still want to be entertained. They may see PPVs as an affordable luxury.


    If WWE Chairman and CEO Vince McMahon is to be believed, the downturn has affected them in that people of viewing parties instead of buying the shows individually. If anything, the targeting of younger audiences was party done to counteract this. When it comes to replacement vacations, doing more local activities like going to the beach and hikes have seen a tremendous uptick in attendance.

    Finally, armin wants to know:

    Alright, never have I commented because I respect your opinions so much. I am an accountant myself and run a quite successful business south of the border... so.... my question is this:

    If you get the chance to work for TNA? (which I dislike so much for their stupid decisions) do you think you could help improve their business model?


    First, let's get Guest#6540's opinion:

    I do not presume to speak for The Journal's reporter, but I'm going to toss my opinion out here.

    There are many voices within TNA that have opinions of how TNA should be run. Many of these people have a lot of clout. Since you have run a successful business, you know how political opinionated people who get paid a lot (and therefore have influence) can be. Jumping into such a situation that does not have one clear defining voice that can set a direction is futile. Ultimately piecemeal changes do not move a company in the right direction. Instead, a situation like this is like a drunk ameba, flowing every which way.

    Second, it does not appear that TNA has yet realized that they have the problems the Journal (and I) perceive that they do. You have to understand that you have a problem before you can solve it. The resources, understanding (I would prefer people who understand why they are going what they are doing so they can react correctly), and enthusiasm would not be available without this understanding.


    As for this reporter, any offer with the correct correlation of pay, location, work/life balance, challenge, interest, and autonomy will be considered, but TNA would be a tough stretch. The Journal is very critical of many elements of their business model and the major focus of the company. In order to be effective, this reporter would need a certain level of control that could not be given with the current structure. With Dixie Carter, Jeff Jarrett, Hulk Hogan, Eric Bischoff, Vince Russo, and others creating their own direction and vision (often different from each other), the situation is not a preferred one to go in to.

    And as Guest said above, TNA has to perceive they have a problem before a problem can be fixed. If they do not see that trying to grow the company in a non-organic fashion is an issue, then there is no way this reporter could be effective. Therefore, it would be a waste of this reporter's time as well as TNA's resources.


    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.


    CLOSING BELL

    This concludes Issue #143 (Volume 2) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.

    Till then!


    Post Comment (23)  |  Email JP Prag  |  View JP Prag's 411 Profile

      Send To Friend  |    Stumble It!  |    Digg It!  | 



    Please add your comment below.
    If you are registered, you can login and post under your registered name. If not, you can post as a guest or register.

    * Please note that 411 moderates all comments. Your comment will show up on the site after it has been approved by an editor.
     
    Name : 
    Comment : 
    Remaining Characters : 
    2800
     

    Comments (23)

     
    I think it's hilarious that so many "adults" in the opinion section have such strong feelings about fucking TNA dolls.

    It's like the scene in 40 year old virgin...only instead of changing the color of the toy soldier pants these fuckers will be changing the color of Jeff Hardy's arm doilies.


    Posted By: Ronnie (Guest)  on June 24, 2010 at 12:25 AM

     
     
    I'm curious to see just how much of the WWE library ends up on YouTube.

    Some companies are finding the DVD market so unprofitable they're happy to at least see some kind of profit from online access that's free to the consumer.

    For example, I just noticed 12 seasons of "King of the Hill" are available for steaming on Netflix while only six have actually seen home video release.


    Posted By: Trashy (Guest)  on June 24, 2010 at 01:23 AM

     
     
    The YouTube move is an interesting one. Diversifying from Hulu may end up being a clever move, although it does mean they stray from the NBC family.
    More interesting is the fact that they don't offer RAW on either Hulu or YouTube, not even after a week's delay. This tells me they aren't really sold on the internet as a profitable distribution medium.


    Posted By: Guest#7771 (Guest)  on June 24, 2010 at 01:39 AM

     
     
    I think it's hilarious that so many "adults" in the opinion section have such strong feelings about fucking TNA dolls.

    It's like the scene in 40 year old virgin...only instead of changing the color of the toy soldier pants these fuckers will be changing the color of Jeff Hardy's arm doilies.

    Posted By: Ronnie (Guest) on June 24, 2010 at 12:25 AM

    If it helps, they will also have the Beautiful People action figures. The only Knockouts represented.
    And here I wanted an Awesome Kong to kill bitches dead.

    But where do you see opinions here about TNA figures, beyond business issues? Aside from what you have started, I mean.


    Posted By: Guest#3229 (Guest)  on June 24, 2010 at 01:42 AM

     
     
    I think it's hilarious that so many "adults" in the opinion section have such strong feelings about fucking TNA dolls.

    It's like the scene in 40 year old virgin...only instead of changing the color of the toy soldier pants these fuckers will be changing the color of Jeff Hardy's arm doilies.

    Posted By: Ronnie (Guest) on June 24, 2010 at 12:25 AM

    ^ Wrestling Fans tend to have Tunnel Vision, it's like they have aspergers or something...They probably didn't realize they were talking about freaking dolls.


    Posted By: JIMBROWN (Guest)  on June 24, 2010 at 01:50 AM

     
     
    RAW's rating has gone up 5 weeks in a row, dating back to mid-late May.

    Nice breakdown of the Martha "Bitch" Hart lawsuit versus the WWE.


    Posted By: Max (Guest)  on June 24, 2010 at 02:06 AM

     
     
    i still say the name tna is hurting the company to grow and get their name out there seriously, instead people chuckle for a second and then never think about that again. in the rise and fall of ecw, paul heyman said the name extreme championship wrestling had a hard time getting on ppv cuz ppl thought they were real and couldnt be allowed on ppv. the name does matter and somehow, somehow tna has to change their name.

    Posted By: perez (Guest)  on June 24, 2010 at 02:09 AM

     
     
    How does the name WWE tell you anything more than the name TNA does? The intials WWE mean nothing.

    Granted, TNA can lead to giggles. But the letters WWE mean nothing without context.

    Once you say World Wrestling Entertainment, you have to say Total Non-Stop Action. The letters TNA are always followed by the words, WRESTLING.

    So if anything TNA actually has the leg up on WWE in that sense. On 99% of things associated with WWE, they don't even say wrestling, whereas TNA always has wrestling in their branding.

    Should TNA have perhaps chosen inititals that weren't a double entendre? Perhaps. However that never worked out for any other organization, including WCW because it made the name sound like a ripoff of WWF.

    I think the name TNA quite well communicates what they are and their mission statement succinctly, TOTAL NON-STOP ACTION WRESTLING. It's about the fast paced, anything goes wrestling environment that they try to produce on their shows. Granted, you could argue that there isn't non-stop action at all times, but you could argue that WWE doesn't have wrestling or entertainment on their shows.

    And what exactly is the name TNA going to stop them from achieving? A national cable TV deal? They already have that. A video game? Been there, done that. Action figures for kids? Guess what, TNA has that too.

    The concept that the name TNA is holding the company back in any capacity is just a delusion dreamed up by internet fanboys that somehow fail to see TNA is an incredibly successful organization.

    WWE the absoloute leader in professional wrestling, with over 50+ years of mainstream brand awareness gets ratings on it's long running most dominant flagship program of a little over a 3 rating.

    TNA which has been on Spike for what, 5 years? Gets a 1 rating. Literally two rating points seperating them, whilst WWE has decades of a leg up on them in brand awareness, capital spending and television broadcasting.

    To be honest, it's almost ridiculous to assume that any wrestling company could do better. TNA regularly beats WWE's other cable offerings, NXT, ECW (when it was around) and Superstars and is surprisingly growing closer and closer to cutting the gap with Smackdown.

    WRESTLING isn't popular as it once was. TNA has done a incredible job of establishing itself as a viable entity. The knuckleheads who think differently on the internet clearly have no depth or scope to their analysis. What TNA has done in a 8 year span is nothing short of a milestone in entrepreneurship and professional wrestling.


    Posted By: Guest#3906 (Guest)  on June 24, 2010 at 03:03 AM

     
     
    Sure Dixie didn't mean "Indiana"?

    Posted By: JayC (Guest)  on June 24, 2010 at 05:05 AM

     
     
    Wrestling is really what made Owen famous and successful and such a legend and you can't erase that... As tragic and wrongful as his death was, you can't erase his legacy and what he accomplished in wrestling."

    Hmmmmm....sounds like this may apply to another dead wrestler who WWE pretends never existed....


    Posted By: NaRyan (Guest)  on June 24, 2010 at 09:35 AM

     
     
    I don't blame Martha Hart at all, I was watching Over the Edge when Owen Hart died. I am sure they can settle this out of court.

    Posted By: wzl (Guest)  on June 24, 2010 at 11:31 AM

     
     
    Is there a particular reason that the WWE doesn't include Raw as part of their streaming offerings? Is it simply because it's "the flagship" so they don't want to potentially dilute the ratings by offering Raw through alternative sources, or are they contractually prevented from doing so? It seems to me that Raw is much more heavily bootlegged then any other WWE show, so if their reasoning is to get out in front of that, not including Raw is a self-defeating move.

    Posted By: Hellpop (Guest)  on June 24, 2010 at 01:31 PM

     
     
    How does the name WWE tell you anything more than the name TNA does? The intials WWE mean nothing.

    Once you say World Wrestling Entertainment, you have to say Total Non-Stop Action. The letters TNA are always followed by the words, WRESTLING.

    So if anything TNA actually has the leg up on WWE in that sense. On 99% of things associated with WWE, they don't even say wrestling, whereas TNA always has wrestling in their branding.

    I think the name TNA quite well communicates what they are and their mission statement succinctly, TOTAL NON-STOP ACTION WRESTLING. It's about the fast paced, anything goes wrestling environment that they try to produce on their shows. Granted, you could argue that there isn't non-stop action at all times, but you could argue that WWE doesn't have wrestling or entertainment on their shows.

    And what exactly is the name TNA going to stop them from achieving? A national cable TV deal? They already have that. A video game? Been there, done that. Action figures for kids? Guess what, TNA has that too.

    The concept that the name TNA is holding the company back in any capacity is just a delusion dreamed up by internet fanboys that somehow fail to see TNA is an incredibly successful organization.

    WWE the absoloute leader in professional wrestling, with over 50+ years of mainstream brand awareness gets ratings on it's long running most dominant flagship program of a little over a 3 rating.

    TNA which has been on Spike for what, 5 years? Gets a 1 rating. Literally two rating points seperating them, whilst WWE has decades of a leg up on them in brand awareness, capital spending and television broadcasting.

    To be honest, it's almost ridiculous to assume that any wrestling company could do better. TNA regularly beats WWE's other cable offerings, NXT, ECW (when it was around) and Superstars and is surprisingly growing closer and closer to cutting the gap with Smackdown.

    WRESTLING isn't popular as it once was. TNA has done a incredible job of establishing itself as a viable entity. The knuckleheads who think differently on the internet clearly have no depth or scope to their analysis. What TNA has done in a 8 year span is nothing short of a milestone in entrepreneurship and professional wrestling.

    Posted By: Guest#3906 (Guest) on June 24, 2010 at 03:03 AM

    Great analysis! Too often people don't recognize that there are other organizations outside of the WWE that are successful.


    Posted By: JR (Guest)  on June 24, 2010 at 01:32 PM

     
     
    Saying nothing of how horrible and needless Owen's death was, if Martha hated wrestling so much, she shouldn't have married a wrestler. People die, life moves on. Nothing will change the past. Allowing people to enjoy the life's work of Owen honors his legacy a lot more than pretending it doesn't exist.

    Posted By: Jon (Guest)  on June 24, 2010 at 01:42 PM

     
     
    Wrestling is really what made Owen famous and successful and such a legend and you can't erase that... As tragic and wrongful as his death was, you can't erase his legacy and what he accomplished in wrestling."

    Hmmmmm....sounds like this may apply to another dead wrestler who WWE pretends never existed....

    Posted By: NaRyan (Guest) on June 24, 2010 at 09:35 AM

    ------------------------------------

    Why should they? I was a huge Chris Benoit fan myself. One of my favorite moments in the history of the business was the end of Wrestlemania 20, where he and Eddie Guerrero celebrated after both were triumphant.

    The day Eddie died, was one of the saddest days in the history of wrestling.

    The day Benoit died, I was like "are you fucking serious?". We lost two of the greatest performers and technicians in the history of the sport in such a short time. Without hesitation, WWE cancelled the LIVE RAW and showed nothing but Benoit matches the entire night and dedicated the entire show to his memory only to find out later in the evening that...he murdered his family?

    In addition to of WWE's biggest stars, former World Champions mind you, dying in a short period of time while under contract with WWE, one of them murdered his family and WWE ran a show in the murderers memory? That was a huge black eye for the company and moreover the sport of professional wrestling!

    Benoit doesn't deserve any recognition.

    He fucked over the fans, he fucked over the business, he murdered his fucking family. I don't care how great he was, the piece of shit deserves what he gets.

    And for a little perspective on the matter, how much mentioning do you hear of OJ Simpson on NFL programming now? Very rarely if ever, and that's simply because his name is in the record books.

    Benoit is the OJ Simpson of WWE.


    Posted By: Are you serious? (Guest)  on June 24, 2010 at 02:44 PM

     
     
    "Nice breakdown of the Martha "Bitch" Hart lawsuit versus the WWE.

    Posted By: Max (Guest) on June 24, 2010 at 02:06 AM"

    How is she a bitch? She has a legally binding contract that states they are not to use his likeness and entitles her to royalties in the event that they did. The WWE did not honor that deal. They even admitted to it. They are in the wrong.


    Posted By: Karatgold24 (Guest)  on June 24, 2010 at 05:12 PM

     
     
    The Martha Hart lawsuit is very interesting. While it seems a certainity WWE will have to make make a pretty big royalty payment, I REALLY hope she doesn't succeed in her efforts to prevent WWE from using or mentioning Owen Hart without permission, as it will simply lead to WWE never mentioning Owen Hart again and his career and legacy being forgotten.

    As much as I understand why she is doing this - in her eyes WWE killed her husband - it is robbing the fans of Owen's matches and character. It also sets a precedent which may lead to other wrestlers being excluded from future releases and recognition because of fear over lawsuits.


    Posted By: Guest#2536 (Guest)  on June 24, 2010 at 08:44 PM

     
     
    Actually, pointing out that TNA stands for "Total Nonstop Action" doesn't help much either. At least WWE stands for "World WRESTLING Entertainment", that is, they make money by entertaining you through wrestling.
    TNA - what kind of action? Action movies? A clip show with only fighting scenes? Stunts, action scenes? Gambling? Porn?
    Yeah, the name is kind of non-specific. On the other hand, if you already know they are a wrestling company, you see their boast. The action just keeps on coming.

    I don't think that the name is what is holding TNA back. The lack of market awareness hold them back. Even when the South was pretty much Coca Cola country, people knew about Pepsi Cola as an alternative. Same with McDonalds and Burger King, Wendy's, etc.
    Being an alternative that (may) fill a market need doesn't do much good if people don't know you exist.

    As for ratings, some of that is exaggerated. WWE has Smackdown on Fridays in spite of their traditional core demographic going out that night. The coming move to SyFy reduces those ratings further, now and in the future. However, that each move was done in order to get larger contracts. WWE and their broadcasting partners know this. That is part of the value in being a proven commodity.
    In WWE's case, ratings were sacrificed for cash. The market is largely aware of their two main shows. Superstars is really a show made of scraps, almost free money. So TNA beating the second and in shouting distance of the first isn't so meaningful. For TNA, ratings are also a (distorted) reflection of how many people know about them.
    Heck, in moving to SyFy, WWE picks up a cool $10 million for exactly the same show. In return for no extra costs, WWE gains a net profit several times higher than TNA's likely net.


    Posted By: Guest#6883 (Guest)  on June 24, 2010 at 09:03 PM

     
     
    If grammar mattered, then "The World Wrestling Entertainment" doesn't make as much sense as "The World Wrestling Federation" did prior to the forced name change in 2001.

    With that in mind, why do you always put a "the" before WWE, but not before TNA or any other wrestling organization in your report, when you should be more consistent and not either put or not put a "the" prior to any wrestling organization's name?


    Posted By: Guest#4150 (Guest)  on June 25, 2010 at 11:57 AM

     
     
    Idk the name matters much and at this point rebranding will make business shrink by way of fan confusion.

    Keep the name,move on people.


    Posted By: Macdollarz (Guest)  on June 25, 2010 at 08:08 PM

     
     
    I don't think Sheamus having a t-shirt in the WWE best-selling list means much when it as at no. 16. Sheamus must be one of the least over multiple-time world champions ever.

    The Miz rising into the top ten is of more interest and significance in my opinion - even if you don't like the guy (and I'm not a huge fan, I think he has been over-rated because of how few young wrestlers now have mic skills) you can't deny he is getting over with the audience in a way none of the other mid-carders have been able to. He has this natural swagger and charisma which is very well suited to the WWE. Could Miz win a world title in 2011?

    Of course, nobody compares to John Cena when it comes to moving merchandise. The guy is a fucking machine, and the way he dominates the best-selling list proves just how much kids really do love this guy. As a fan I'm sick of his stale act and never-ending push, but if I worked for the WWE I would be doing the exact same thing. Making tons of money from top stars is what it's all about in the end.


    Posted By: Guest#1231 (Guest)  on June 26, 2010 at 10:31 PM

     
     
    "I don't think Sheamus having a t-shirt in the WWE best-selling list means much when it as at no. 16. Sheamus must be one of the least over multiple-time world champions ever."

    Considering what is above Sheamus, the sheer number of items offered by WWE, and the weak first championship reigns that are standard in WWE now, I think it shows plenty.
    On the other hand, consider who isn't above him. For that matter, the IWC love's Orton's new face turn and look where he is, only one item at #11.


    Posted By: Guest#5350 (Guest)  on June 27, 2010 at 12:16 AM

     
     
    You nerds are pathetic, spouting off bullshit opinions about the business-side of pro wrestling when you aren't involved in it and never will be. Your opinions mean jack shit.

    Posted By: Guest#3752 (Guest)  on June 27, 2010 at 09:03 PM

     


  • www.41mania.com
    Copyright (c) 2011 411mania.com, LLC. All rights reserved.
    Click here for our privacy policy. Please help us serve you better, fill out our survey.
    Use of this site signifies your agreement to our terms of use.