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The W - Pro Wrestling - The Motley Fool calls WWE out for their business model.
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lotjx
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Since: 5.9.08

Since last post: 5 hours
Last activity: 16 min.
#1 Posted on | Instant Rating: 1.17
http://beta.fool.com/mikecart1/2012/04/24/wwes-business-model-endangered-species/3894/?ticker=WWE&source=eogyholnk0000001

I know its just a blogger, but its a rather well respected blogger in the business world. A lot of interesting ideas on how to change the way WWE does business as well as some real problems that are out of Vince's hands.



The Wee Baby Sheamus.Twitter: @realjoecarfley its a bit more toned down there. A bit.
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devineman
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Since: 16.2.04
From: UK

Since last post: 817 days
Last activity: 417 days
#2 Posted on | Instant Rating: 8.00
He only has two articles and the other is about parking lots. He also says that he was in college in the 2000s.
DJ FrostyFreeze
Knackwurst








Since: 2.1.02
From: Hawthorne, CA

Since last post: 84 days
Last activity: 12 hours
#3 Posted on | Instant Rating: 7.25
Read it and weep, fella


Did you write that article?



CLICK OR DIE
RYDER FAKIN
Six Degrees of Me








Since: 21.2.02
From: ORLANDO

Since last post: 583 days
Last activity: 21 days
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#4 Posted on | Instant Rating: 7.81
Frosty: Did you write that article?

*CHEST BUMP* for Frosty. You just saved me 500 words

FLEA






Demonstrations are a drag. Besides, we're much too high





John Orquiola
Scrapple








Since: 28.2.02
From: Boston

Since last post: 23 days
Last activity: 23 days
#5 Posted on | Instant Rating: 6.16
    Originally posted by Motley Fool
    "Additionally, mixed martial arts and the UFC have taken market share away from the fans of professional wrestling. UFC has the edge because if people don't want to buy it at home, they can easily find a sports bar around that will show it for free (with the idea being you buy the beer and food at that establishment). I haven't seen a wrestling event shown in public in a long time. This hurts the bottom line of the WWE if you just think for a second of all the sports bars that are within a city and then multiply that around the country."


How does this logic work? A sports bar purchases a UFC PPV. 100 people come to sports bar to watch UFC PPV. That's still one purchase of a PPV, not 100. The people that benefit are the proprietors of the sports bar. Additionally, UFC and WWE don't run PPVs opposite each other. So how does this take market share from WWE?

    Originally posted by Fool
    Reality TV seems to be in these days. Why not promote series like Tough Enough where fans can watch new wrestlers try to make it in the business?


They did. It was called Tough Enough. Several times.

    Originally posted by Fool
    Another suggestion is to capitalize on the supplement industry. GNC Holdings Inc (NYSE:GNC) and Vitamin Shoppe, Inc. (NYSE:VSI) are near their all time highs right now. The supplement industry overall is on the rise and is in the several billions in sales annually. If WWE can use the right wrestlers to market the right products like your traditional protein, creatine, and multi-vitamin products that are popular among active gym goers, this can be a hugely profitable addition to WWE's bottom line.


ICO-PRO. 1993.

(edited by John Orquiola on 25.4.12 1615)


@CMPunk
“@ZackRyder: @CMPunk She played me bro” I got your back.
It's False
Scrapple








Since: 20.6.02
From: I am the Tag Team Champions!

Since last post: 22 hours
Last activity: 11 hours
#6 Posted on | Instant Rating: 6.56
    Originally posted by John Orquiola
      Originally posted by Motley Fool
      "Additionally, mixed martial arts and the UFC have taken market share away from the fans of professional wrestling. UFC has the edge because if people don't want to buy it at home, they can easily find a sports bar around that will show it for free (with the idea being you buy the beer and food at that establishment). I haven't seen a wrestling event shown in public in a long time. This hurts the bottom line of the WWE if you just think for a second of all the sports bars that are within a city and then multiply that around the country."


    How does this logic work? A sports bar purchases a UFC PPV. 100 people come to sports bar to watch UFC PPV. That's still one purchase of a PPV, not 100. The people that benefit are the proprietors of the sports bar. Additionally, UFC and WWE don't run PPVs opposite each other. So how does this take market share from WWE?


The E actually does use sports bars and the like. They're WWE Blast Areas and I've occupied one for at least a couple of PPV's last year. I'd imagine that the company (whether it be UFC, WWE, or a boxing promoter) has some sort of contract with the establishment that allows them to show the PPV. I think it works a little differently with WWE, as I was charged admission at my local Blast Area. I believe The E gets a cut of every admission sold. It doesn't increase PPV buys, as you mentioned, but it does lead to some sort of financial contribution. While it's not the ideal solution, I'm betting The E would rather get a $10 cut from some schmuck at a bar than have that same schmuck pirate a stream and leave them with nothing at all.




"This is DIET Double Dew, Kyle! It only has half the caffeine and sugar of Double Dew!"
geemoney
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Since: 26.1.03
From: Naples, FL

Since last post: 21 min.
Last activity: 7 min.
AIM:  
#7 Posted on | Instant Rating: 7.72
    Originally posted by It's False
      Originally posted by John Orquiola
        Originally posted by Motley Fool
        "Additionally, mixed martial arts and the UFC have taken market share away from the fans of professional wrestling. UFC has the edge because if people don't want to buy it at home, they can easily find a sports bar around that will show it for free (with the idea being you buy the beer and food at that establishment). I haven't seen a wrestling event shown in public in a long time. This hurts the bottom line of the WWE if you just think for a second of all the sports bars that are within a city and then multiply that around the country."


      How does this logic work? A sports bar purchases a UFC PPV. 100 people come to sports bar to watch UFC PPV. That's still one purchase of a PPV, not 100. The people that benefit are the proprietors of the sports bar. Additionally, UFC and WWE don't run PPVs opposite each other. So how does this take market share from WWE?


    The E actually does use sports bars and the like. They're WWE Blast Areas and I've occupied one for at least a couple of PPV's last year. I'd imagine that the company (whether it be UFC, WWE, or a boxing promoter) has some sort of contract with the establishment that allows them to show the PPV. I think it works a little differently with WWE, as I was charged admission at my local Blast Area. I believe The E gets a cut of every admission sold. It doesn't increase PPV buys, as you mentioned, but it does lead to some sort of financial contribution. While it's not the ideal solution, I'm betting The E would rather get a $10 cut from some schmuck at a bar than have that same schmuck pirate a stream and leave them with nothing at all.

I watch at Buffalo Wild Wings, which to my knowledge is not an official Blast Area, nor do they charge a cover. I think what happens is WWE charges the restaurants/bars that show the PPVs a healthy sum, which is why some bars/restaurants have a cover or make you buy a minimum $$ of food or drink when you watch.



@gregmparks - live Tweeting of Raw and Impact, wrestling thoughts and other slices of life.
Lexus
Bierwurst








Since: 2.1.02
From: Stafford, VA

Since last post: 3 days
Last activity: 16 min.
AIM:  
#8 Posted on | Instant Rating: 5.03
    Originally posted by John Orquiola
      Originally posted by Motley Fool
      "Additionally, mixed martial arts and the UFC have taken market share away from the fans of professional wrestling. UFC has the edge because if people don't want to buy it at home, they can easily find a sports bar around that will show it for free (with the idea being you buy the beer and food at that establishment). I haven't seen a wrestling event shown in public in a long time. This hurts the bottom line of the WWE if you just think for a second of all the sports bars that are within a city and then multiply that around the country."


    How does this logic work? A sports bar purchases a UFC PPV. 100 people come to sports bar to watch UFC PPV. That's still one purchase of a PPV, not 100. The people that benefit are the proprietors of the sports bar. Additionally, UFC and WWE don't run PPVs opposite each other. So how does this take market share from WWE?

      Originally posted by Fool
      Reality TV seems to be in these days. Why not promote series like Tough Enough where fans can watch new wrestlers try to make it in the business?


    They did. It was called Tough Enough. Several times.

      Originally posted by Fool
      Another suggestion is to capitalize on the supplement industry. GNC Holdings Inc (NYSE:GNC) and Vitamin Shoppe, Inc. (NYSE:VSI) are near their all time highs right now. The supplement industry overall is on the rise and is in the several billions in sales annually. If WWE can use the right wrestlers to market the right products like your traditional protein, creatine, and multi-vitamin products that are popular among active gym goers, this can be a hugely profitable addition to WWE's bottom line.


    ICO-PRO. 1993.

    (edited by John Orquiola on 25.4.12 1615)


When I last worked at a sports bar we would show UFC PPV events, but when a company like ours did they would have to pay for it by seat in the house (and to recoup losses would have a minimum tab of $15 per person) instead of the standard home charge. I want to say it was around $1,200 for us to show Lesnar/Velasquez. I imagine this practice holds true for the WWE as well, seeing as it was partially DirecTV's way of making higher profit off the broadcast.

Considering the very next article was on how the PC is dying, whoever wrote this tripe knows nothing of which they speak, and whomever finds this tripe credible enough to repost probably knows less (no offense, but next time you find a source you agree with very easily, the wise move may be to find another source that supports it).

(edited by Lexus on 25.4.12 2007)


"Laugh and the world laughs with you. Frown and the world laughs at you."
-Me.
Scottyflamingo
Bratwurst








Since: 23.6.10
From: Auburn, AL

Since last post: 368 days
Last activity: 97 days
#9 Posted on | Instant Rating: 2.43
A lot of BWW's show WWE PPV. But Lexus is right, businesses have to pay a high amount to show PPV's (granted there are bars that just order the show on PPV for their TV, but the LEGAL was is to get a commercial feed.

Our BWW showed WWE, but they had to quit because they weren't pulling in enough customers. To illustrate the difference, you have to get there an hour early for UFC events to get a seat (and more like 2 when it was a big Lesner fight.) I went to two WWE shows, Mania and another show (whichever one Benoit no showed when he was, you know). Mania was mostly full, but still had a few seats. The other show was like eating a 2pm lunch.

If WWE had the interest they'd be shown in more places.
Stefonics
Bockwurst








Since: 17.3.02
From: Queidersbach

Since last post: 8 hours
Last activity: 4 min.
#10 Posted on | Instant Rating: 5.82
He is a rather well-respected blogger in the business world. A world which we clearly know nothing about, either through practice or profession.



It’s so hard for me to sit back here in this studio, looking at a guy out here, hollering my name! When last year I spent more money, on spilled liquor, in bars from one side of this world to the other, than you made! You’re talking to the Rolex wearin, diamond ring wearin, kiss stealin, WOOOO wheelin dealin, limousine ridin, jet flyin son of a gun. And I'm having a hard time holding these alligators down!
Mr. Boffo
Scrapple








Since: 24.3.02
From: Oshkosh, WI

Since last post: 358 days
Last activity: 319 days
#11 Posted on | Instant Rating: 7.95
    Originally posted by Stefonics
    He is a rather well-respected blogger in the business world. A world which we clearly know nothing about, either through practice or profession.

Are you speaking of David and Tom Gardner, the founders of Motley Fool, or Michael Carter (the author of this particular article) specifically? As noted at the top of the article "Michael is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited."

Re: PPV, here's an article from just two weeks ago that talks about how they work at bars, giving some details about costs.
http://www.businessweek.com/articles/2012-04-12/pay-per-view-wrestles-with-bar-owners
Of interest is the fact that UFC has claimed $4.7 million in settlements in the past 6 years from bar owners who were illegally presenting UFC PPVs without paying the proper compensation.
Stefonics
Bockwurst








Since: 17.3.02
From: Queidersbach

Since last post: 8 hours
Last activity: 4 min.
#12 Posted on | Instant Rating: 5.82
    Originally posted by Mr. Boffo
    Are you speaking of David and Tom Gardner, the founders of Motley Fool, or Michael Carter (the author of this particular article) specifically? As noted at the top of the article "Michael is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited."


Carter. The article is bad. And for some reason, the disclaimer makes me more upset than the article itself. If you are a rather well-respected blog network, why promote anything less than excellence? Or at the very least, make sure it is worthy of your brand before it hits the interwebs.



It’s so hard for me to sit back here in this studio, looking at a guy out here, hollering my name! When last year I spent more money, on spilled liquor, in bars from one side of this world to the other, than you made! You’re talking to the Rolex wearin, diamond ring wearin, kiss stealin, WOOOO wheelin dealin, limousine ridin, jet flyin son of a gun. And I'm having a hard time holding these alligators down!
InVerse
Bierwurst








Since: 26.8.02

Since last post: 1 day
Last activity: 23 hours
#13 Posted on | Instant Rating: 2.21
    Originally posted by Stefonics
    If you are a rather well-respected blog network, why promote anything less than excellence? Or at the very least, make sure it is worthy of your brand before it hits the interwebs.


Because the point of sites like this running blogs is to make money without expending any effort whatsoever. If they had to edit the pieces, they would just post them on the real site.
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- XPacArmy, New DVD's coming up from WWE (2003)
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