News from the WWE Quarterly Conference Call . . .

[res37618 0]

- It was noted that DVD sales have proven to be a strong revenue/profit base for the company. Over 1.8 million units were sold in fiscal '05, and they estimate 2.1 mil. will be sold in the next fiscal year. This would indicate a couple more DVD releases than the prior year, or another blockbuster release that will drive sales again (can we hope for a Four Horsemen or Bret Hart comp?). Linda reiterated how great DVD sales have been, and they seem excited to keep providing more releases for the fans, and said that they are "reworking" their video library to maximize this.

 

- An exclusive DVD will be released to Wal-Mart which will showcase the two trips that WWE SmackDown has made to Iraq. No other details were given.

 

- Linda said that they hoped to announce distribution deals for WWE 24/7 within the next few weeks.

 

- Royal Rumble has been estimated at 455,000 buys, obviously down from what they were looking for.

 

- Negotiations with SpikeTV "and others" to carry WWE programming are ongoing.

 

- Average attendance for live events in the quarter was about 4,000 per event, only down 100 from the prior year's quarter.

 

- WWE bought a corporate jet for $21.1 million. Flyin' in style, huh?

 

FROM THE Q & A SESSION:

 

- A new merchandise line, integrated with WWE 24/7, will be launched featuring legends and such. Several legends (Linda said almost 30) have been signed to promotional appearances and deals, mentioning Superstar Billy Graham as an example. No other details were given.

 

- Linda refused to talk about what cable companies were negotiating for 24/7, but said there were 8 or 9 contracts out being looked over. She said it looked like it would be offered at a price of $6 to $8 per subscriber.

 

- Someone asked about "emerging stars" in the WWE's future, and the only one Linda mentioned by name was John Cena. She said that Raw had been producing several stars that were starting to become "celebrities", but that's all that was said. Can't believe that she didn't mention Batista by name, considering he's also main eventing WM21.

 

- Linda talked about WWE Films quite a bit, and said that two of them were in the "Editor's Cut" stage of post-production. They sound really enthusiastic about the possible success of these movies. I just can help but wonder how long it will take them to be in the $5.50 bin at Wal-Mart . . . .

 

- Continuation of international events is a priority for the company. D'uh, they're pretty much the only arenas that sell out. Linda mentioned an interest in developing business in Italy, with Italian versions of the DVD's being planned.

 

- Someone asked about the brand split, and any changes that may be coming. Linda says that it's now being deemed a success, but they still don't have the crossover appeal that they wanted (apparently, only 28% of viewers watch both shows on a regular basis). When asked about doing any cross-promotion of the brands, Linda says that it's up to the creative staff to do "co-mingling" of stars on both shows in order to help with crossover, and since she's really not involved in that aspect, she really couldn't add anything.

[Guest Fook_Theta]

Couldn't add anything because she's not involved in that very important aspect, but will lie and say it has been a success?

 

I really cannot wait till Inoki crushes McMahon in about twenty years, until Vince can pull out the win and send him home packing.

[Guest Loss]

It's wonderful of them to put out a DVD of their trip to Iraq, basically asking fans to watch them congratulate themselves for being such great humanitarians. WWE doesn't know how to do anything genuine or heartfelt -- even when they do something really special like this, they have to turn it into a vehicle and make money off of it.

[strummer 0]

It's wonderful of them to put out a DVD of their trip to Iraq, basically asking fans to watch them congratulate themselves for being such great humanitarians. WWE doesn't know how to do anything genuine or heartfelt -- even when they do something really special like this, they have to turn it into a vehicle and make money off of it.

Deep down I really don't think they mean harm or anything by doing this. It's just that the McMahons see everything through a business perspective. Vince's life IS the wrestling business. I honestly don't believe they know they are being insensitive when they do things like this. It's not an excuse, just an observation.

[res37618 0]

It's wonderful of them to put out a DVD of their trip to Iraq, basically asking fans to watch them congratulate themselves for being such great humanitarians. WWE doesn't know how to do anything genuine or heartfelt -- even when they do something really special like this, they have to turn it into a vehicle and make money off of it.

"Genuine" and "Heartfelt" are two words that have never, should never, and probably will never be used to describe WWE. You should know that by now.

 

And of course they want to make money off of it . . . . the last time I heard, they're in business to make money. I think you can be sincere in something and still be able to use it to further your business. I don't see anything wrong with it, personally.

[Guest Loss]

I do. Going to Iraq should be something they're doing because they truly want to put on a show for the troops, not because they want to make a DVD of the trip and sell it and not because of the public relations possibilities. There are many corporations that do positive things that don't broadcast them to the world because what they're doing isn't about that. It's obvious this was WWE's way of saying "Look at us -- we're such great people". They can't even be humble without making a big production of it. There's business, which is what wrestling is, but this should be charitable.

 

I'm not surprised, just disgusted.

[cameron chaos 0]

Is this a new corporate jet or just the one they were using for Brock before hand?

 

It's sad when Linda can't pull her daughter aside and say "Cross promote the brands more, hardly anyone is watching both shows".

[Placebo Effect 0]

I do. Going to Iraq should be something they're doing because they truly want to put on a show for the troops, not because they want to make a DVD of the trip and sell it and not because of the public relations possibilities. There are many corporations that do positive things that don't broadcast them to the world because what they're doing isn't about that. It's obvious this was WWE's way of saying "Look at us -- we're such great people". They can't even be humble without making a big production of it. There's business, which is what wrestling is, but this should be charitable.

 

I'm not surprised, just disgusted.

So you'd have preferred they not air Smackdown in Iraq, and kept the thing cameraless?

[Guest Loss]

Yes.

[Guest Phenom]

- Someone asked about "emerging stars" in the WWE's future, and the only one Linda mentioned by name was John Cena. She said that Raw had been producing several stars that were starting to become "celebrities", but that's all that was said. Can't believe that she didn't mention Batista by name, considering he's also main eventing WM21.

I can say, without hyperbole, that John Cena is the face HHH.

[Guest Brian]

Released only to Wal Mart?

[MarvinisaLunatic 0]

An exclusive DVD will be released to Wal-Mart which will showcase the two trips that WWE SmackDown has made to Iraq. No other details were given.

 

-

 

Is it a 7 disc set with all the different Creed video packages included as extras?

[Jericho2000Mark 0]

- Someone asked about the brand split, and any changes that may be coming. Linda says that it's now being deemed a success, but they still don't have the crossover appeal that they wanted (apparently, only 28% of viewers watch both shows on a regular basis).

 

How can it be deemed a success when buisiness has only continued to drop ever since it began?

[cameron chaos 0]

Because people don't complain about it sucking as much as they used to. Less complaints = success, it seems. Less people attending and watching events = success also.

[Guest Loss]

They probably consider it a success because they've had all those extra PPVs to their normal schedule and they've all had strong buyrates, showing that the market will support more PPVs, if only in the short term.

[Jericho2000Mark 0]

They probably consider it a success because they've had all those extra PPVs to their normal schedule and they've all had strong buyrates, showing that the market will support more PPVs, if only in the short term.

What about No Mercy and Taboo Tuesday?

[Guest Loss]

Those didn't do very well, but SurSer, Armageddon and NYR all performed above expectations. The Rumble was a little lower than normal though, but the way they view things, they exceeded last year's PPV numbers in January. Misleading I know.

[nl5xsk1 0]

re: using "genuine" or "heartfelt" to describe the WWE ... I don't think Vince helped both Regal and Guerrero with their addiction problems to make money. The guy is definitely a dick at times, but it's not like he's a dick 24/7.

 

re: them releasing the Iraq tours ... I have always said that it'd be good business to releas videos of house shows or at least showing them on TV. And I consider the Iraq tour to be a big-ass house show. So, I have no issues with them releasing them to the public.

[Jericholic82 0]

I think the only reason vince decided to go to Iraq twice is to get major mainstream atention which he constantly craves, and to get mentioned in a positive light (thus we get the self-congratulatory comments from the announcer and countless video packages showing how difficult the trip was-screw you at least youre arent getting blown up or shot at every day)

 

just like the smackdown your vote campaign and countless other things

 

 

but sadly for vince, the media doesnt give a rats ass what wwe does

[Guest Salacious Crumb]

- Average attendance for live events in the quarter was about 4,000 per event, only down 100 from the prior year's quarter.

 

This one really jumped out at me. This is completely unacceptable for the WWF yet they're trying to put some kind of positive spin on it. This is getting close to WCW levels.

[Promoter 0]

The company seems to understand that fans are eating up the DVD products like Benoit and Eddie's etc. I don't know, but wouldn't that clue them in on what the fans actually want? You know, how they put together these DVD products from more of a sophisticated approach without all the hollywood crap they put on their tv shows. You know, how fans are eating up stuff like Flair and ECW dvd products could be giving them a damn hint, no?

[RavishingRickRudo 0]

No, because only a small portion of their audience are buying the DVD's.

 

Like, _maybe_ 10% of the audience is. (5% would be closer).

[Guest Super Pissed Smark]

The company seems to understand that fans are eating up the DVD products like Benoit and Eddie's etc. I don't know, but wouldn't that clue them in on what the fans actually want?

 

I'm pretty sure they've already announced another Divas DVD. Enjoy.

 

It's interesting how PPV still seems to be holding up even with the added events. They only lost another 100 at live events. The bleeding is down to a trickle. Maybe this is absolute bottom for the WWE and business can't fall any further. Even if they can't add customers they still seem to be able to squeeze more money out of existing ones. So maybe they don't really have any incentive to improve the product if they can still sort of grow it without expanding their fan base. Wonderful. Just wonderful.

 

And Test is no longer one of the big stars that creative is so busy creating? So sad.

[razazteca 0]

Anybody know the total sales for the Diva Search DVD? The local FYE has 12 copies still on the shelf eating up space.

[CanadianChick 0]

Anybody know the total sales for the Diva Search DVD? The local FYE has 12 copies still on the shelf eating up space.

I don't see why they would be very high. You can just look at pretty pictures of them on the net.

[Guest MikeSC]

Anybody know the total sales for the Diva Search DVD?  The local FYE has 12 copies still on the shelf eating up space.

I don't see why they would be very high. You can just look at pretty pictures of them on the net.

I dunno. A lot of them tend to be non-photogenic types.

 

But I don't get why the WWE has to release so damned many diva DVD's. If they aren't getting naked, how is it different than the crap they do on TV that nobody watches?

-=Mike

[Placebo Effect 0]

Anybody know the total sales for the Diva Search DVD?  The local FYE has 12 copies still on the shelf eating up space.

I don't see why they would be very high. You can just look at pretty pictures of them on the net.

I dunno. A lot of them tend to be non-photogenic types.

 

But I don't get why the WWE has to release so damned many diva DVD's. If they aren't getting naked, how is it different than the crap they do on TV that nobody watches?

-=Mike

They're still profitable, and that's what counts.

 

Most Diva DVDs are filmed while in the midst of a photo shoot, so the budget on them is very low.

 

They could release another straight wrestling DVD instead of the Diva stuff, but they don't want to blow their load by inundating the market. That is their belief, and not mine, though.

[Guest Tjhe CyNick]

The 4,000 number is not accurate because it likely factors in internation events, which are inflated. I assume the North America average is much much lower.

 

To me thats the best judge of how popular business is. You can get people to buy a PPV, but its tough to draw people to a show where nothing of consequence will happen.

 

However, for the profitablity of the comapny, PPVs and TV is what is most important.

 

Am I the only one who thinks that 28% crossover audience number is a total crock of crud?

 

Business wise the company is run very well, they have managed to continue to make profits while revenues continue to decline.