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WWE $8.6 million net loss


moofasa

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I'll add my observations. WWE is the biggest wrestling company in the world. Thats a shocker, right? :p But seriosuly, looking away from their in-ring product (which I'm not a fan of), they generate big revenue which no other company can touch. Even with a loss the last quarter there is no major crisis. The revenue is there. But the thing that separates WWE from all the other wrestling companies is that it's not just a wrestling promotion. It's an multi-entertainement company. Wrestling might be the main selling point, but it's only one of many income franchises they have. Which we can see from their excuse for going in the red this quarter blaming it on their movie ventures not being successful this period.

 

The other thing that separates WWE from everyone else is that they are lucky to have a established PPV business. Ok, TNA make a tiny bit of money from it too, but PPV is something that's very American and not something thats well established anywhere else in the world. At least not at the level it is in the US and the loyal base that the WWE has of buyers. Just think where would WWE be without their PPV income. It gives them the financial edge over all other companies since the PPV business is rooted so well into their main base, culture and fan base.

 

CMLL is probable the second most secure company as they own their own building that they run shows in and has got their hardcore base of fans filling those arenas to good crowds every week running the same pattern week in, week out. They are firmly based in Mexico City, but don't really have any ambition to expand and try and bridge out of their base. In a way one can call it a local Mexico City company, but if you go by drawing crowds they're one of the biggest companies in the world.

 

The Japan scene is something I've followed more closely. And yes, the scene is struggling big and is not growing in any way or form. It's been over a decade since any of the companies could touch the American scene as far as money goes. Historically, no major company in Japan has remained a force without network TV backing them. It's always been like that. During the successful TV years in the 1980's the companies did well because the networks where the ones to sponsor and pay for the foreigners and big stars they'd bring in to boost the shows. When the TV stations started getting less supportive in the 90's the Japan scene still had a big and loyal following thanks to the exposure and how strong wrestling had been rooted in Japan TV culture. That's when the companies changed their format to doing more big shows drawing massive crowds on a regular basis, but as the 00's came along wrestling had very little mainsteam exposure and the fanbase kept dropping and the companies had to re-structure themselfs to the new situation.

 

And that's where we are now. Now they are small operations working hard to make ends meet and no money to waste or experiment to create a buzz. Only New Japan has a tiny bit of TV network backing now, but it's not close to what it once was. So their revenue now is mainly based on their direct wrestling based product. Meaning tickets, merch and show sponsors. Not TV, PPV's, movies or whatever other financial adventures WWE has. They are wrestling company, and sell wrestling only. That a business model that's stale and old of date now, but they don't have any backing to change and most of their energy is used on just trying to survive hoping one day that a TV executive will get a wrestling kick and put them back on with a good time slot. They'd love to make money outside Japan, but no Japan company is going to cross-over big abroad since sadly the universal language is english and not puro-love.

 

 

--PUNQ--

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