The Hamilton Ave Journal 12.01.07: Volume 1 – Issue 10
Posted by JP Prag on 12.01.2007
TNA rides a wave of momentum into 2008, more sources pick up on the WWE’s economic impact, and TNA wins the ratings race and the winter merchandise awards.
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 1 – Issue 10
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.
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: TNA rides recent successes, makes plans for ‘08
TNA has come off of two major successes in the past week, bolstering the company as the year comes to a close. First off, last Saturday "TNA iMPACT" was the forth most searched term on Yahoo, showing a high level of interest in the product. Although this does not necessarily translate into ratings, PPV buys, or merchandise buys, it is a form of free advertisement that TNA could use. The more their name appears in systems they have nothing to do with, the stronger they look overall despite weak cash flow.
Meanwhile, on Thanksgiving TNA presented a "Turkey Bowl" edition of TNA iMPACT that scored a 1.0 rating, even while going head-to-head with the Colts vs. Falcons game (which scored a 5.0 rating on the fledgling NFL Network). This has to be seen as an amazing accomplishment since all programming, especially wrestling, usually shreds 30-50% of its audience on a major holiday. TNA can only look at this a positive as it shows their core audience will tune in at any time. It reaffirms that they do have a core audience that they can turn to.
The next test for TNA is when they go head-to-head with ECW for one hour in December. Last time the two faced off, TNA dropped to a 0.6 rating, showing that they are sharing too much of the WWE audience, and that the WWE audience will pick WWE over TNA. Now it is time to see if those people have been converted to TNA fans, and if TNA can use its first hour to maintain viewers into the second.
Meanwhile, TNA is making plans for the next year as they continue to evolve the product. Right now, the company is trying to negotiate a one year extension with Sting. Although they would prefer to have him, it looks like TNA is letting him sit out the remainder of his contract so as to phase him out should he not return. At the same time, they are signing new talent including "Consequences" Jones and ODB, showing a commitment to new talent and the new women's division. They are also in negotiations with MMA star Bob Sapp, although no deal is pending. Still, it is a look for different talent and not rehashes of former WWE talent.
On the same end, Spike is showing more confidence in TNA as the play a special for TNA's tour of Mexico and have added Kurt and Karen Angle to the Game Show Awards. Rumors are also circulating that TNA is in talks with ABC and CBS about network programming as the writers strike continues. Since TNA writers are non-union, there is no need to worry about wrestling not having original programming.
Others have started to notice TNA as well. The Miami Herald recently wrote an article about Booker T, which is not that unusual. But Forbes Magazine—a business magazine much like the Journal you are reading—named Gail Kim one as one of the most eligible bachelorettes in the country. Forbes knowing who Gail Kim is and representing TNA to the business community is another huge feather it the cap for TNA.
All and all, TNA is entering a very successful time in the company, and it will be interesting to see if they can ride the wave and capitalize on all that is happening, or if there lack of overhead, processes, and experience holds them back again.
More Newspapers pick on WrestleMania's Economic Impact
Coming off the study released by the WWE last week, other newspapers (including the Detroit Free Press) are picking up on the idea that WrestleMania added $29.7 million in economic impact to the city as well as $4.7 million in tax revenue. The more this story spreads—no matter how suspect the numbers may be—the better for the WWE. They have been lacking good press for over six months, and articles like this show the positive effect of wrestling on communities. With this type of coverage, the WWE can turn to Congress should they decide to pursue their hearings and let them know that sanctions on the WWE will only hurt the places they come to visit.
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 52 weeks we should be able to see patterns, trends, and anomalies. Please note that gaps in the chart below are due to data not being released/available.
For the week ending Thursday November 29 2007, here are the current standings of our shows:
RAW
Close (This Week's Rating): 3.5
Open (Last Week's Rating): 3.5
Percentage Change: UNCH
52-Week High: 4.3
52-Week Low: 2.5
All Time High: 8.1
All Time Low: 1.8
SmackDown!*
Close (This Week's Rating): 2.8
Open (Last Week's Rating): 2.7
Percentage Change: ▲ 3.7%
52-Week High: 3.3
52-Week Low: 2.2
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): 1.4
Open (Last Week's Rating): 1.3
Percentage Change: ▲ 7.7%
52-Week High: 2.3
52-Week Low: 0.9
All Time High**: 2.3
All Time Low**: 0.6
** ECW's All Time figures include ECW on TNN
TNA iMPACT***
Close (This Week's Rating): 1.0
Open (Last Week's Rating): 1.1
Percentage Change: ▼ 9.1%
52-Week High: 1.2
52-Week Low: 0.6
All Time High: 1.2
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
Analysis:
As noted above, TNA scored a tremendous rating of Thanksgiving, not really shedding any of their audience despite the holiday. Every time a WWE program been on a holiday they have usually lose between half a million to a million viewers. While TNA only has a little over a million viewers, less than 100,000 did not show up for Thanksgiving. Meanwhile, the rest of the WWE program has basically flat lined over the past month, despite the returns of key stars, special appearances, and all kinds of specials. It will be interesting to see if the RAW 15th anniversary does anything for ratings and—even if there is a one week bump—if the WWE can maintain that audience over time.
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 ten selling items for the WWE? From WWEShopZone.com:
1. WWE Action Trading Cards
2. Shawn Michael Heartbreak and Triumph DVD Retro T-shirt Package
3. WWE Black Gift Bag
4. John Cena My Life DVD
5. WWE Superstar 2007 Ornament
6. Stone Cold Steve Austin Jakks Exclusive Action Figure
7. Chris Jericho Save_Us.222 T-shirt
8. 2008 WWE Day Dream Calendar
9. Triple H The Conqueror T-shirt
10. Triple H Grey Skull T-shirt
Chris Jericho's return has prompted the one thing WWE wanted: more merchandise. Although Jericho's return cannot immediately indicate a ratings rise, it will immediately indicate a merchandise buy. Interestingly, the Jericho shirt was available before his debut, but only now hits the top ten. The equation is simple: when you are on TV, you see more.
TNA requires a little bit more research. Their website does not release Top Ten lists, so the Journal does a general search for a space on "featured products" and sorts by most popular. They came up in order as:
1. TNA Meltdown Vol. 2 CD
2. The History of TNA: Year 1 DVD
3. Instant Classic: The Best of Christian Cage DVD
4. TNA Fleece Jacket
5. NEW TNA Hoodie
6. TNA Christmas Ornament
7. 2008 Wall Calendar
8. TNA Playing Cards
9. Long Sleeve TNA Logo T-shirt
10. TNA Chrome Logo Hat
This week, TNA practically wiped the slate clean with a plethora of new items, mostly around the winter season. Although the WWE dominated T-shirts, they have rarely parlayed that into successful winter items. TNA, on the other hand, has a jacket, hoodie, and long sleeve shirt that are all more expensive and have a higher margin. Volume is apparently high enough to make the top ten, making these items a success for TNA.
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 next 2 weeks? The Personal Journal answers that question.
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
2 (Dec)
TNA Turning Point Orlando, FL
RAW Live Savannah, GA
SmackDown!/ECW Live Florence, SC
3
TNA iMPACT Orlando, FL
RAW North Charleston, SC
4
TNA iMPACT Orlando, FL
SmackDown!/ECW Belfast, Ireland
5
SmackDown!/ECW Live Belfast, Ireland
6
SmackDown/ECW Live Frankfurt, Germany
7
SmackDown!/ECW Live Zurich, Switzerland
8
9
10
RAW Bridgeport, CT
TNA iMPACT Orlando, FL
11
SmackDown!/ECW Boston, MA
TNA iMPACT Orlando, FL
12
13
14
TNA Live Monterrey, Mexico
15
TNA Live Mexico City, Mexico
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.
No critical pieces were written this week, so worth your read instead is:
