wrestling / Columns
The Hamilton Ave Journal 03.08.08: Volume 1 – Issue 24
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 1 – Issue 24
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: WWE expanding further into Internet and China
A few weeks ago, there was a surprising figure in the WWE’s Q4 and Year End financial results. The largest jump in PPV revenue did not come from an increase in buys, but because a larger percentage of the buys came from the domestic market. In recent years, domestic buys and ratings have been slipping, but have been more than made up for by international growth.
Even with the surprise pop in domestic buys—as well as attendance—overall the United States market is saturated. There is room for growth, but not at the rate as in markets outside of the USA. In particular is China, with an untapped population of 1.3 billion people. WWE President of Canada, Latina America, and China Carl DeMarco was recently in Shanghai starting to build the bridge to get the WWE into the Chinese market. Although the WWE has already penetrated the Japanese, Thai, and Korean markets (and WCW penetrated North Korea in an infamous two-day event), so the inroads to China have been laid, although remain unpaved.
Meanwhile, the NBA has made tremendous strides in China mostly because of Yao Ming. NBA brand basketball was relatively unknown in China before Yao Ming was discovered. He became a national hero that people could get behind, and Carl DeMarco is looking for a similar talent that can compete in the WWE. Meanwhile, because of the NBA’s popularity, China is starting to build mid-sized indoor arenas, the type the WWE want to use as well. So because of the NBA, the WWE may find additional inroads to the Chinese market.
Meanwhile, the WWE does intend to continue diversifying its existing products as it seeks revenue beyond television, PPV, DVD sales, and merchandise. It was reported earlier this month that hits to WWE.com have been down, which has led the way to the WWE adding an “Industry News” section. In this part of the website, the WWE sites other websites as sources and even includes news about competing organizations like TNA. Through this effort, the WWE is trying to become a one-stop shop for wrestling news, much like the Wrestling Zone of 411wrestling.com.
At the same time, the WWE has ended a long-standing ban against YouTube and MySpace and has opened pages on both. Although the WWE has hosted their own content for a very long time, they have undoubtedly noticed that the bandwidth costs do not match the revenue. With YouTube and MySpace, they can get a deal like the other content providers to receive a share of the revenue from advertisements without the cost of hosting.
Overall, the WWE has been trying to increase their online presence. This can be seen internally as well as the WWE is seeking Flash designers, content editors, web developers, web analysts, database administrators, and designers for their online divisions. Overall, there is a tremendous focus on new and better online content, a sign that the WWE has truly accepted the online market and knows that they have a future in there that they must be ready for.
TNA not so live, SmackDown! has more reasons to move
Last week, the Journal covered TNA iMPACT going live and the reasons why this may not be the best time to make the move. But as pointed out in the commentary section, as well as by TNA themselves, this is not the beginning of TNA going live completely but just a one-time event. Most see this as an experiment to get the feel of a live show and check the logistics of it. The Journal can concede that a test is warranted, and would rather have a test than a full-blown move.
One of the key reasons the Journal is concerned about the idea of TNA going live is that it limits the company’s ability to change nights. Already this summer SmackDown will be preempted in New York four times for Mets games. MyNetworkTV carries Yankees games for the New York Market, which could mean more preemptions in the nation’s largest market. Two years ago, one night there were so many preemptions in major markets that SmackDown! was only able to score a 1.0 rating. Not wanting that to happen again, the WWE may push MyNetworkTV for the Thursday night spot.
Again, this could be a dangerous spot for TNA. On one hand, people who watch SmackDown! may end up flipping channels and finding TNA, thus increasing their ratings. On the other hand, SmackDown! may prove much for the relatively lesser known TNA. TNA does not have the years of longevity nor the built-in audience WCW had when they launched Nitro. As large as TNA is, they are not to level WCW was in 1995.
ROH looking to expand markets, keep PPV
After pulling back shows in far flung markets, limiting the roster size on each show, cutting out international talent, and losing Canada, ROH seems to have decided to go against its own advice of building core markets. This year, ROH wants to add a new southern market to its touring schedule, despite not having the resources for it.
Meanwhile, ROH’s PPV deal in the United States ends in May and negotiations are underway to continue that relationship. Although buyrates remain unavailable, losing the Canadian PPV market will not help ROH in their negotiations. Still, PPV companies in America seem more willing to broadcast a large variety of wrestling types (including backyard, hardcore, and naked), so it is likely that the company will be able to sign a new contract at least in line with what they have now.
Newsbites
Some items of note in the rest of the wrestling business world:
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 March 6, 2008, 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: ▼ 0.9%
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): 2.6
Open (Last Week’s Rating): 2.7
Percentage Change: ▼ 3.7%
52-Week High: 2.9
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): 1.2
Open (Last Week’s Rating): 1.3
Percentage Change: ▼ 7.7%
52-Week High: 1.8
52-Week Low: 0.6
All Time High: 2.3
All Time Low: 0.6
TNA iMPACT**
Close (This Week’s Rating): 1.1
Open (Last Week’s Rating): 1.1
Percentage Change: UNCH
52-Week High: 1.2
52-Week Low: 0.9
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:
There is a disturbing trend going on in the WWE right now. For the past two weeks, all of their shows have declined in ratings. Normally, this would not be a huge issue as two weeks hardly make a trend forecast. But this is the time of year when the company is gearing up towards WrestleMania, their single biggest money maker in multiple categories. Still, last year all three shows also decrease by 0.1 to 0.2 basis ratings going in to WrestleMania, and the show did a record 1.2 million buys. The audience may be slightly smaller, but the conversion rate remains extremely high for the biggest show of the year.
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. John Cena 8-Bit T-Shirt
2. Hardys Purple Logo
3. WWE Black Gift Bag
4. Triple H The Conqueror T-Shirt
5. D Generation X Anytime Anywhere T-Shirt
6. WWE Party Supplies Pack
7. Randy Orton Oblivion T-Shirt
8. Stone Cold Steve Austin Legacy of Austin DVD/T-Shirt Package
9. Triple H King of Kings: There is Only One DVD/Retro T-Shirt Package
10. John Cena 8-Bit Youth T-Shirt EXCLUSIVE
As from last week, John Cena dominates both ends of the spectrum with a top selling adilt item and a top selling youth item. Jeff Hardy is biting at his heels, but the WWE has diversified the product base to see some new ones make the list. Retro appears to the world of the week with the WWE unloading excessive inventory by combining it together and selling it through Steve Austin an Triple H. Meanwhile, everyone seems to be gearing up for their WrestleMania parties with a WWE Party Supplies Pack, a good choice by the WWE.
TNA releases a list of Top Ten selling items, but in no order. Using the function to sort by most popular, they came up in order as:
1. Against All Odds 2007 DVD
2. Christian Cage “Instant Classic”
3. Sacrifice 2007 DVD
4. Motor City Machineguns T-Shirt
5. TNA Meltdown Vol. 2
6. TNA Anthology – The Epic DVD Set
7. TNA Global Impact DVD
8. James Storm “Sorry About Your Damn Luck” T-shirt
9. Turning Point 2007 DVD
10. Shark Boy 24:7 T-Shirt
A completely different list greets us from TNA this week where the only holdovers where Christian Cage, the Motor City Machine Guns, and TNA Meltdown Vol. 2. Aside from those, it truly is DVD week as three PPVs, a DVD set, and Global Impact all made the list. This brings back an earlier point about TNA focusing more on events than on individuals, a very different strategy than the WWE. On the other hand, two characters made the list with James Storm returning not unexpectedly. There is no reason to belabor the point, but James Storm is again outselling most of the roster. On the unexpected side is Shark Boy, where apparently his new gimmick is getting over more than people believe as his T-shirt cracked the Top Ten. With that type of success, it is unlikely TNA will stop with his performance any time soon.
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 |
| 9 (Mar)
Norfolk, VA Green Bay, WI Dubuque, IA |
10
Milwaukee, WI Orlando, FL |
11
Chicago, IL Orlando, FL |
12
Aiken, SC |
13
Salem, VA |
14
Waco, TX Pikeville, KY Dover, NJ |
15
Tyler, TX Alexandria, LA Dover, NJ |
| 16
Beaumont, TX Bossier City, LA Philadelphia, PA |
17
Lafayette, LA |
18
Biloxi, MS |
19
Springfield, MO |
20
Evansville, IN |
21
St. Louis, MO |
22 |
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.
To continue on the questioning on untapped marketing potential JBBTHWK wrote back in with his own thoughts:
Alright you answered Hernandez for TNA and John Morrison as far as WWE was concerned, I wouldn’t of been able to pick for TNA because frankly, I didn’t care, but for WWE I would of believed that as far as untapped Marketing potential is concerned, the obvious choice to me is Shelton Benjamin because for a lot of traits that draw people to Morrison with the exception of the Mic skilled because of that (as Larry says) obvious forced catchphrase “Ain’t No Stoppin’ Me NOW!” but his micwork much like Jeff Hardy’s is improving.
Now who do you see as the future Franchise player, I mean sure John Cena is great now as far as Merchandise sales, but his popularity won’t always be at it’s peak, so out of the future stars, who do you see replacing the Doctor of Thuganomics as WWE’s #1 Marketing star? And who will be TNA’s future….. well…… provided they have a future, marketing star? And have there been in your opinion failed marketing opportunities in your opinion by either TNA or WWE? For TNA I’d have to say the Wildcat Chris Harris or Primetime Elix Skipper
Shelton Benjamin’s lack of mic skills and lack of charisma have severely stymied his career. Two years ago he would have been the best choice for untapped marketing potential, but now he falls under you question about failed marketing opportunities. Still, there is potential for him, as you have said, since someone like Jeff Hardy—who has been around for years—has found a new lease and a strong connection with the audience. Still Jeff Hardy had built himself up to a different level before his recent accept, and Shelton Benjamin has never had that strong of a following.
For future franchise players, CM Punk is the most likely of everyone on the active roster, especially in the era of anti-drugs. The problem is that John Cena is very young and most likely has at least 5 years being the #1 guy. During that time, Punk can only reach the #2 face. The Rock and Stone Cold were able to co-exist for a time at the top, but that is rare when two guys are really the top guy. The money bet would not be on anyone on the active roster right now, but someone in development that we do not know about yet. Perhaps even someone just starting their training right now. John Cena is the franchise for many years to come, so most likely someone new will have to come along to usurp him or Cena will have to move on like the Rock.
In TNA, Samoa Joe seems to be set to be the center of the company. Jay Lethal stands a fairly good chance of also becoming that person if Joe does not work out. The time may have passed on AJ Styles becoming that person. His style will not give him as many years in the ring and he’ll most likely have to retire before his 40’s. Men like James Storm and Tomko have some potential but most likely cannot have an entire promotion revolve around them. Again, it is more likely someone who is not even in TNA yet and just starting to learn how to wrestle.
Failed marketing opportunities are too numerous to go in to, but the largest one that stands out to the Journal is RVD. When RVD was feuding the Triple H the first time and won the title on RAW (only to have the decision reversed on him), the WWE threw away all of the money they could have earned from the then uber-over RVD. The same issue happened with TNA, most notably with Raven during the PPV era and Samoa Joe last year. The audience was ready for these champions and wanted to get behind them, and you can see the direct loss in ratings and buyrates after they did not pull the trigger.
From the commentary section last week, we have responses to the untapped marketing potential as well as several other items to highlight.
Blanky/Nikolai writes in with:
I feel that if TNA was trying to appeal to smarks then they would be good to push MCMG, James Storm, Kaz, and Lethal. If they wanted to get more marks I’d say pushing Eric Young, Rhino, Shark Boy, and Lethal. If they wanted to appeal to everyone they should push Curryman and Lethal. It does look like they’re pushing Lethal.
Jay Lethal seems to be the pick for MVP of TNA, much like AJ Styles was during the first few years with the company. It will be interesting to see if TNA can completely get behind Lethal and let him move up the card. For now, he is fine in his role of X-Division champion and can steal the show every night and elevate the title, like RVD did in ECW. Paul Heyman always liked the idea of having the most over guy not hold the championship and using the belt for those who truly need it. That works for a while, but eventually you do have to pull the trigger to gain the most from it. Lethal can benefit from a long term programming like RVD in ECW before moving on to higher levels.
411mania’s own Mathew Sforcina wrote in with:
Honestly? Khali and Big Show as a face tag team could possibly make some cash, since they are both larger than life and what have you.
The Journal would like to point out that Mr. Sforcina’s in-ring name is the “Massive Q”, so he would be more inclined to believe larger performers fair better.
On the subject of SmackDown!’s new home, Hossier Jim500 says:
The MyNetworkTV station in the South Bend Indiana area is a low power UHF station that is not even carried by our local Comcast or by Dish Network. Guess I won’t be seeing Smackdown anymore.
Someone has to be in the 4% of markets that do not have MyNetworkTV. It is possible between now and September that MyTV finds affiliates in many of these markets or that a local station decides to take on some of MyTV’s content. Also, cable and satellite providers may have another station that is too far away to pick up by signal, or pick up another stations before September.
There was plenty more written, so be sure to check out the rest of that section. Also worth your read this week is:
And, of course, a week would not be complete without a good dose of my very own HIDDEN HIGHLIGHTS!!
CLOSING BELL
This concludes Issue #24 (Volume 1) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.
Till then!
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