wrestling / Columns
The Hamilton Ave Journal 10.25.08: Volume 1 – Issue 57
THE HAMILTON AVE JOURNAL
By JP Prag
Volume 1 – Issue 57
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 launches Kidz site, gets a video game award, and wins the praise of Wall Street
While trying to stem the tide of an economic downturn, WWE has been making small waves all weeks with several noteworthy items.
First up, WWE SmackDown vs. RAW 2008 for the Xbox360 reached “Platinum Hits” status. What this means is that the game sold 400,000 or more units in the nine months since its release in November 2007 and is now selling at a lower price points ($29.99). The award is self-gratifying, but several AP wire sources have picked up on the story and are spreading it like it was an independent milestone. Says Nelo Lucich, Senior Vice President of Interactive for JAKKs Pacific:
“We are delighted the WWE SmackDown vs. Raw videogame franchise has reached ‘Platinum Hits’ status for its second consecutive year on Xbox 360… WWE SmackDown vs. Raw 2008 embodies a host of fan favorite features, including Superstar Fighting Styles and a new Struggle Submission System, which further define the virtual WWE experience.”
Meanwhile, that was not the only accolade the WWE received this week. Despite a sagging stock market in general, renown CNBC analyst Jim Cramer had this to say when asked specifically about WWE stock:
“The 9.7 percent yield is attractive even though the stock isn’t a growth name… I’m bullish on World Wrestling Entertainment. I’m sticking with it.”
WWE stock did well in early morning trading after this comment, but still ended down for the week. Even though Cramer gave an overall high recommendation, he did still site what the Journal and other analysts have shown: the WWE is paying out more in the dividend than they are doing on the bottom line and they are showing negative growth in core areas. Like Mr. Cramer, the Journal would feel more positive about the WWE if their growth plan were showing any returns or if they formally changed their focus. Without this, the WWE looks to rising in costs and shedding key figures.
One of the areas for growth is the WWE Kidz Initiative. As seen on WWE programming for the past two weeks, the organization has launched a separate website aimed at a younger audience. Says Tony Romando, Vice President and Editorial Director for the WWE:
“It’s a great way to introduce young fans to the WWE Universe and allows them to interact with their favorite Superstars in ways they never have before.”
Continues Bob Lee, Vice President and Publishing Director:
“The site launch will be supported by a comprehensive cross-platform marketing blitz, including promotion on WWE TV programming, WWE.COM and WWE magazines.”
Along with going to TV-PG, the WWE Kidz Initiative is a multi-facetted program designed to bring in new viewers at an early age and make them a part of the WWE’s continued growth and programming. Right now, the WWE estimates that there are 2.8 million children as young as 6 watching their product on a weekly basis, but they would like to expand that number further and makes these kids viewers—and consumers—for life.
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.
For the week ending Thursday October 23, 2008, here are the current standings of our shows:
RAW
Close (This Week’s Rating): 2.9
Open (Last Week’s Rating): 3.1
Percentage Change: ▼ 6.5%
52-Week High: 4.1
52-Week Low: 2.5
All Time High: 8.1
All Time Low: 1.8
SmackDown*
Close (This Week’s Rating): 2.0
Open (Last Week’s Rating): 2.1
Percentage Change: ▼ 4.8%
52-Week High: 2.9
52-Week Low: 1.6
All Time High: 5.8
All Time Low: 1.0
* SmackDown! ratings may include fast overnight if final ratings are not posted. Also, SmackDown! ratings are for the prior week as overnights are not available before this article goes to print.
ECW
Close (This Week’s Rating): 1.3
Open (Last Week’s Rating): 1.1
Percentage Change: ▲ 18.2%
52-Week High: 1.6
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): 1.0
Percentage Change: ▲ 15.8%
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:
After two weeks of making MyNetworkTV history, SmackDown had to settle for the second-best rating on that station ever when they slipped 4.8% to 2.0. iMPACT and ECW, meanwhile, both saw moderate gains back to their recent nominal levels. The larger issue, though, is that RAW slipped again, this time back down to a 2.9. Not only is RAW not making up any ground, but their share of the market continues to decline and continually crowded space.
The usual excuses of Monday Night Football or Heroes did not work this week as both of those shows saw ratings below normal. It would appear that more people are turning off their TVs for other activities than wanting to tune in for destination television. While RAW is usually in the top ten most time-shifted programs, those numbers amount to a 0.1 to 0.2 ratings difference.
Some of made mention that a ratings point today equals more physical viewers than a ratings point eight years ago. This is true as ratings values are adjusted based on population. That said, as a population increases the share of the population should remain consistent or go up in a growing product. Instead, the WWE has been shedding the share they do have and not capturing most of the new population. And even if one were to believe that having a lower rating but relatively the same number of viewers were fine, that is not the case for the WWE. RAW started off the year with an average ratings for January of 3.6 and currently had an average rating of a 2.9 in September. That is a drop of over 19%! In nine months, populations do not shift enough that a ratings share could cover the different. The WWE is simply losing viewers and not gaining new ones at a fast enough rate.
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. Jeff Hardy 2008 YOUTH Halloween Package ($84.49, on sale $36.99)
2. Jeff Hardy 2008 Halloween Package ($87.49, on sale $39.99)
3. Hardys Dream 2 Defy YOUTH T-Shirt ($22)
4. Triple H Grey Skull Sweatshirt ($40, on sale $12.98)
5. WWE Black Gift Bag ($3)
6. Hardys Purple Logo Pendant ($10)
7. John Cena 2008 YOUTH Halloween Package ($81.99, on sale $40.99)
8. WWE: Hell in a Cell DVD/T-Shirt Package ($59.95, on sale $26.99)
9. John Cena 2008 Halloween Package ($84.99, on sale $43.99)
10. Rey Mysterio 2008 YOUTH Halloween Package ($79.99, on sale $39.99)
Dominating the list this week is again Jeff Hardy, controlling 40% of the Top Ten. But, much like almost everything on the Top Ten, his items (along with John Cena’s, Rey Mysterio’s, and Triple H’s) were on sale. This once again shows that the WWE is hitting into their margins and making up in volume what they will lack in profit. On the sunnier side, Hardy did premier a new shirt for kids with an odd price tag of $22. This full priced items is certainly the high margin good the WWE needs and is a positive sign for the charismatic enigma.
TNA releases a weekly Top Seven list on ShopTNA.com. According to the site the top selling items were:
1. Jeff Jarrett Autographed Laser Engraved Guitar ($299, on sale $199)
2. Autographed Sting Baseball Bat ($149)
3. TNA iMPACT Video Game ($39.99 to $59.99)
4. Knocked Out DVD ($14.99)
5. TNA Global iMPACT DVD ($19.99)
6. Post Yard Sale DVD Special ($29.99)
7. Post Yard Sale T-Shirt Special ($39.99)
Looks like TNA neglected to update their list this week. This is exactly what happened with their old site and looks to be a continued trend for them.
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.
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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, Total No Sales questions TNA’s top sellers:
1. Jeff Jarrett Autographed Laser Engraved Guitar ($299, on sale $199)…
… who REALLY wants that absolute utter crap?!
Their shop sells totally minuscule amounts of goods, proved since this is the top seller. We are taking DVD sales into double digit sales – that is an absolute *fact*.
What a joke!
Despite your tone, there is a lot of truth to what you say. TNA’s list has been plagued with small run items (less than 100) that have stayed on the Top Ten/Seven for weeks on end. That means either the volume is incredibly low or the list is just a sham. This reporter believes it is a little of both (judging by the lack of update this week), but TNA does pretend to do much more volume than is really happening. That said, their DVD sales do occasionally make it into the Top Ten Selling Sports DVDs, which means they are selling THOUSANDS of units in some cases. So your “fact” is not quite true, either.
Outside of the dollars, eRIC wants to know:
Who on earth would sexually harass Nicole Bass?
Nichole Bass alleged in her lawsuit that she was asked to do many storylines she felt were compromising to her character and that bookers, writers, and specifically Vince McMahon spoke to her in a demeaning and sexually latent tone. According to her, when she complained about the situation it only got worse until she was fire, so she felt she was dismissed for complaining, thus bringing it all full circle. Since the WWE and Bass settled out of court, the WWE has admitted no wrong doing while Bass has gone on with her life.
eRIC has several other questions that tie together nicely.
“but marketing faces like Michelle McCool, Mickie James and Maria as role models for little girls”
Yes I want my daughter to pose for Playboy, show her naughty parts on the internet and sleep her way to the top.
“Obviously, football, baseball, and basketball have done tremendously well with advertising to women”
How, exactly?
Guest#9075 was quick to respond:
“Yes I want my daughter to pose for Playboy, show her naughty parts on the internet and sleep her way to the top.”
Some proof on that last one? And dating a wrestler doesn’t count. Proof of a diva sleeping with Vince, a road agent, or a member of the creative team.
eRIC is alluding to the allegation that Michelle McCool slept with the Undertaker. If true, it may have helped her career. Maria, on the other hand, dated CM Punk when he was in ECW and Santino Marella. Those are hardly names to get you up the card. Likewise, Mickie James was engaged to Kenny Dykstra when she won her first Women’s Championship. Sure, she had posed in nude pictures before coming to the WWE, but that has little to do with her career today.
These woman project (whether true or not) that athleticism, talent, dedication, and hard work do pay off. They can act as role models and be the toys and games these girls want to play with. Plenty of other women heroes have had seedy pasts, as have many male heroes. Look at Hulk Hogan who told kids to take their vitamins and do the right thing. You know what? Despite what Hogan may or may not have been doing backstage with politics and drugs, his persona was identified with and inspired. There is a whole generation of wrestlers that exist because they were inspired by Hulk Hogan, and how he got there or who he really is does not matter to them or to the marketing.
Guest#3378: covers the other point:
I think the comment JP made about sports marketing towards women was in reference to the fact that many sports teams are now making women’s t-shirts, hoodies, and other apparel that was only marketed and designed for men until just a couple of years ago…and the sports leagues have made a ton of money off of this, as there was apparently a higher demand for it than they expected.
That is exactly the point being made in the Journal. Not only that, but ratings for sports (most notably football) have increased tremendously as they have brought in the female demographic. Also, when women watch sports, men have been free to watch more sports as well. So in the end, it becomes a double whammy. The WWE should take note that if they get more women to watch the product than the women will also bring men to the product as well.
Finishing us off this week, Guest#8504 would like to know a little about the Journal’s processes:
My question really has nothing to do with wrestling, but more to do with the Journal in general. When does volume one become volume two? This was V1, #56. I had thought that since there is one journal a week that at #53, it would no longer be V1 but would instead go to V2. Thus, each volume would be one year’s worth of journals.
The Journal plans to change volumes when the Journal moves days in the week, preferably to a good one like Monday or Tuesday. Write your local editor and make it happen!
Plenty more was written, so be sure to take a look. And of course, a week would not be complete without a good dose of JP Prag’s own HIDDEN HIGHLIGHTS!!
CLOSING BELL
This concludes Issue #57 (Volume 1) of THE HAMILTON AVE JOURNAL. Join us next week as we get ready to ring the bell again.
Till then!
