Rating And Business Woes: WWE At A Crossroads

[Guest BoboBrazil]

by Dave Scherer Updated: 9/11/2002 11:46:51 AM

 

 

A 3.4. That is what it has come to, a 3.4.

 

WWE Raw, once the most dominant show on basic cable, limped to a 3.4 cable rating this week, its lowest number in more than four and a half years. WWE is now officially drawing less than half of the viewership that watched Raw at its peak. That drop in viewership has translated into serious declines in all of the major aspects of their business.

 

At this point, there is no use in sugarcoating the issue any longer. It's become official, the WWE juggernaut, which Viacom pays an estimated $550,000 a week to for the rights to its cable programming, has hit the skids, in all major areas of their business. The abysmal rating, taken by itself, would be bad enough, but when you consider what WWE did on the show this week, it just makes the situation so much worse.

 

As we have chronicled in these pages over the recent months, WWE has had serious problems with the creative end of their company for over a year now. The grousing by wrestlers backstage about the ineffectiveness of the creative team has become common knowledge, and even led the company's top star, Steve Austin, to go home rather than be a party to it. Seemingly unable to produce any solid ideas and unwilling to commit to long term planning, WWE has instead assumed that the best way to get back their lost viewership is by hotshotting angles and producing "shock jock" types of storylines that at a good part of their fan base is telling them they don't want to see. Feeling the stress and pressure of losing viewers at alarming levels, WWE turned to "hot lesbian action" this week in an effort to turn around the ship and get people talking about their product. If it had worked, and the number would have spiked this week, WWE would have thought that they had the answer and would have fed the fans more bits along those lines in the weeks to come. Thankfully, their audience showed them that wasn't the answer. I say "thankfully" because I hope that WWE will receive the message that they were sent this time. I hope that they will realize that the fans are telling them that they have gotten so far away from what their product should be, and what they expect it to be, that they need to change course and do so quickly.

 

While the Viacom deal is the holy grail to the company right now, it won't last forever. They are currently two years into their relationship with Viacom, with three more remaining. Since debuting on TNN, Raw's rating has dropped considerably. Last night's show was down 38% from the first show that aired on the Viacom cable network. Heat has dropped considerably as well, with its ratings down far more than 50%. Superstars and Livewire did so poorly that they had to be replaced by Confidential and Velocity. When Viacom signed the deal with WWE, Raw was the top rated show on cable, which is no longer the case. Viacom had hoped that the presence of Raw in their lineup would elevate the rest of a network that they were changing from a country channel to a USA-like mainstream station. They most probably overpaid WWE for the rights to their programming for the chance to make it the anchor of their prime time lineup and use it as a foundation to promote their other shows and gain market share. That hasn't happened either. In fact, TNN did not even crack the top 10 prime time cable networks, again, last week, and all it would have taken to do so was a 1.0 average rating. It's clear that under the best possible circumstances, Raw hasn't delivered anything close to what TNN had hoped it would. A loss leader is worthwhile to a business if it gains in other areas. When it doesn't, a loss leader is just a money loser.

 

Recently, there have been signs that the relationship between Viacom and WWE isn't what it once was. Much like what happened with ECW when they didn't deliver the 2.0 ratings that Viacom had hoped for, as WWE's ratings have fallen Viacom has reportedly become less enamored with the wrestling company. The first public indication of this discontent occurred a few months ago when TNN sent back a tape of a lingerie special that WWE had done for TNN when the content was deemed to be too racy. The show was then rescheduled for late the following Saturday night. Internally, this was a move that angered WWE. Externally, it was an embarrassing black eye because after heavily hyping the special on Raw, it didn't air the next night, which made them look silly.

 

Things got worse between the parties this Monday night when WWE did the HLA angle. Numerous industry sources have told me that TNN executives were irate at what WWE did on the show and what aired on their network. They felt that the HLA segment was embarrassing, sleazy and not suitable to air on TNN. They called WWE management immediately and reportedly read them the riot act. Finally, yesterday afternoon they issued a statement making it very clear that kind of programming would not air again. Clearly, the bloom is off the rose in the WWE-TNN relationship. Not delivering your end of a deal, which WWE clearly hasn't done, will have that affect.

 

So now, WWE finds itself in a position where the future is actually far more important than the present. In three years, when their TV deal expires, the market for buyers of their programming will have changed. A lot. WWE obviously shouldn't count on The USA Network, who lost the bitter battle for WWE's programming to TNN two years ago, to have a spot open for them if TNN chooses not to bring them back. USA felt betrayed by the way that WWE handled leaving, but more important than that, they have done quite well in WWE's absence. They were the fifth highest rated network in primetime last week, averaging a 1.8. They did it without the "stigma" or costs involved with being WWE's broadcaster too. Aside from USA, the market for channels that want to air wrestling, let alone pay top dollar for it, are minimal. It's no secret that wrestling programming is hardly in demand right now. To make matters worse, they now own a brand that has been in a steady decline for two years. They are just lucky that they have three more years on the Viacom deal right now or they could find themselves in greater trouble. So, WWE needs to look ahead and realize that right now they are at their low point and need to build for the future. They have three years to do so and there is no time to start like the present.

 

To make the needed changes the company will have to take a long, hard and honest look at where they stand as a company. WWE has fallen into a trap of thinking that it's more than what it really is. They like to think they aren't a wrestling company that does a little entertainment, but rather an entertainment company that dabbles in wrestling. That line of thinking worked a few years ago, when they were delivering a consistently entertaining product. Then again, most of the vignettes that they did back then had more purpose and actually sold the wrestling, unlike the silly things that they are doing now. When Steve Austin drove a beer truck down to the ring, it was to get at his adversary Mr. McMahon. In the cases where the vignettes were just for entertainment, they were actually entertaining, unlike now. Even when DX went to WCW, they did it to get a group over in the context of a storyline. That entertains fans. What did HLA sell? Heat on Rosie and Jamal? No, that wasn't it's purpose. It's purpose was to be "shocking" and get people talking. It obviously didn't work. Why? Because less and less people are talking about WWE. They need to realize that and react. Now. Not being one to point out the problems without offering solutions, here is a list of changes that I think that WWE needs to make.

 

First and foremost, the company needs to realize that all of those casual fans that they attracted in days gone by have left. They are gone, onto the next fad. The people that are still here are wrestling fans. They watch WWE programming because they like professional wrestling. If my recent email is any accurate barometer, WWE is now driving the long time, hardcore fans away. WWE needs to stop the migration of fans away from their product and refocus itself on what it is, a wrestling company.

 

They need to establish and define characters, give them opponents to work with, create issues between them and write shows that make sense from a wrestling standpoint. As SummerSlam showed, when feuds are built up over months instead of weeks, it makes for a better show.

 

Forget about the water cooler. This isn't 2000 anymore. Today's audience is half of what it was, so all of the bandwagon fans have gone. They don't talk wrestling at the cooler anymore because they don't watch it. The fans that are left are the long time followers who didn't talk wrestling at the cooler before it got hot, and don't do so now. So, with the cooler out of the equation, they can stop doing stupid things that people who aren't watching obviously won't talk about.

 

Can all hot shot angles. The ratings take time to rise, and time to fall. There is no magic answer to the problem. It took time to get where they are and it will take time to build back up again. The company needs to practice patience over impulsive damaging behavior.

 

Listen to your fan base. Back when they were hot, WWE listened to what the fans were saying, if not literally then figuratively. Now, Vince McMahon and company seem obstinate and determined to shove their ideas fans down their throats, whether they like them or not. It's a bad way to run a business.

Obviously, that is just a start of things that need to be done. I didn't mention the brand extension because they are committed to it, but it has obviously helped hurt the company as well and I think it should be dumped. Whatever they do, they have to do something. WWE is at a crossroads right now and if they don't implement changes soon, things will continue to slide.

 

 

1wrestling.com

 

 

I agree.

[Guest snowfan]

me too...

[Guest mickberna]

I agree, but mostly with the part about the fact that most of the fans left are the hardcore fans... enough with the stupid casual fan shit.

 

If there's one indication as to why the writing sucks, take a look at the job requirements for the producer/writer position on HotJobs... they want someone with soap-opera-type writing experience. WTF.

 

It's WRESTLING, GODDAMNIT.

[Guest Vern Gagne]

Me three

 

Does anyone else think that Vince might use the backlash from the HLA skit has a storyline to fire Bischoff.

[EL DANDY~! 0]

Where did they go wrong?

 

Why did all the people backstage SUDDENLY go to a soap-opera like feel? It's as if somebody decided that pure wrestling wasn't going to get them over as a good company. This is the same company that had both Hart bros, Shawn Michaels, and Steve Austin (pre-neck injury) at the same time in 1996, and instead let soap opera go over wrestling. The WWE is at a crossroads, all right...they need to cross out the soap opera and focus on wrestling. All this T 'n A bullshit does NOTHING! If you like soap opera, WRITE FUCKING SOAP OPERAS! If you are a wrestling person, WRITE ABOUT WRESTLING! NOTHING FUCKING LARGE has to happen except to let these people WRESTLE. Thesz, Rogers, Flair. They had SIMPLE gimmicks. Shit, why did they go this way?

 

Of course, that is just my opinion.

[Guest BoboBrazil]

They started all these skits when Russo was booking. The only thing is when Russo booked, he booked everything for a purpose and gave everyone a storyline. Now they try to book the same kind of skits as Russo, but without the purpose to them and without trying to give midcarders a purpose.

[Guest Spaceman Spiff]

Me 4, but keep the split.

[Guest nikowwf]

What was Russo's exact purpose except to entertain himself? (Or in WCW to put himself over.)

 

Yes the WWE is bad right now, but never talk about Russo as if he was better. Jeez, did you people even watch the stuff he did in WCW?

 

I'm sorry, but it aggravates me when people bring up Russo as he absolutely destroyed any chance WCW had of coming back, specifically with how he killed the world title.

 

Niko

[Guest DJ Jeff]

Damn, I must be the only one that actually doesn't mind the current WWE product. That's good, though, for the WWE, since it means they still have at least one fan that likes the product. Of course it could be WAY better. I think the only reason I don't mind the product currently, is because I've adapted to it. Since I know that it won't really get better, I figure, "fuck it, I might as well enjoy it."

[Guest swan]

DJ Jeff do you know Tommy Fiero personally?

[Guest gwf0704]

Nikkowwf may hate Russo but he did give some good "wrestling" angles instead of soap opera. I didn't care too much for Russo myself but I dont have the blind hatred that you seem to have. By the way, without Russo, WWE is going the way of WCW. Small fan base, low ratings, bad shows....

[Guest wwF1587]

Ahh I feared the RAW rating would be low... but not this low. DAMN man... I thought RAW wasnt bad except for the HLA stuff. I mean if that rating gets any lower its going to be in the dangerous "WCW 2s". I mean finnancially the WWE are ok, but if fan interest continues to drop like this, its over. I am a big fan WWE, I am still hoping it gets better. I think alot of fans have lost that hope, so there for they find other things to do. We really need a big character to main event. HHH is not what he use to be. The WWE needs some big character, RVD is good but he needs more character. This only mean that we can look forward to yet another reset in the coming of weeks. Its hard to believe the company we watch now, use to put on soo much great tv and interesting stuff. Shows how unexpected the wrestling business is.

[Guest MarvinisaLunatic]

Im quite sure that, if the WWE gets ditched by TNN/Viacom/UPN/MTV, Vince will either start up his own wrestling channel or put the WWE on weekly PPV like the TNA stuff. Both would no doubt be a better alternative for him than to try and consistently balance what the networks want with what the advertisers want and what he wants.

[Guest Ronixis]

Hmm, this has become a crossroads.

 

Its time to make Shane take his place as the leader in the company.

 

This all reminds me too well of Motoko Baba and AJPW. If care is not taken, HGH will become the leader of the company by proxy, just like Mutoh is in that place now.

 

If the "Brand" dont shape up in the next 3 months, Viacom will back off the back off the contract (I seen the same thing happen to FK and the Fox Stations, so if you say It cant happen, watch.) or Ask Jerry Jarret and his men to put TNA on TNN. (Hey they aired one of there ads weeks ago)

 

You watch, they gonna put R&S on soon and that sucker is gonna make them a "National Network" Faster than Raw did.

 

The Brand's only hope at the "Ace" spot is to Promote Booker T, Benoit and Angle. Lets face it, they made Brock a fool by spliting the titles again. RVD is at the ready to become the true Ace, but he needs to get back his ECW persona and not this crappy one. I think Tommy Dreamer could be the Next DDP if they gave him his old ECW persona as well.

 

Another thing is, that they MUST FIRE Brian Geruszitz(Sp) and hire the writers they had in 2000-2001 before Brian, and make Heyman head booker along with Bishoff. Its time to ask Al Snow and his connections in the Rising Sun to get some of Arsion's people (Bring as well the Two TE contestents) and Do away with the HLA they did, because as far as I am conserned, Vince has NO repect for women, even for his wife and his child (Steph). Keep VKM Inoki AWAY from the women's division entirely, even giving it up to Arsion/Gaea/Zenjo if NEED be. He needs to be working for retirement, period. If Steph wants to stay in the booking, she needs to work within the womens divison only, she has some success there. (You wondering why I am not blaming Bish for this? Come ON...hes is there for show and has NO control over the product.)

 

They need to have a competion like Super J. This will make the Cruserweights look very credible threats to NWA's X-Division. Hell, even bring them in the competion. Have a story around it...This way everbody wins.

 

Fuck the fucking mainstream sucka. They been going for fads for years (Pokemon, and all the rest) But a classic last for as long as humanty last.

Its time to bring the awe back to the sport. If these men cant get pushed before WM19 then Linda will have no choice but to make the company somehow...But by then...it maybe too late...

[Guest ISportsFan]

In addition to pushing Booker/Angle/Benoit, et al, they need to go back to creating STORYBOARDS for their angles and making sure they keep hot until the end. Make sure they aren't booking on the fly.

 

Heck, when I ran a crappy backyard fed with my friends (don't worry, we weren't dumb enough to hurt each other with "hardcore" stuff), I made storyboards for my angles. Why can't the multi-million dollar company?

 

Jason