The Wrestling Post 2014 year in review

January 6, 2015

2014 was supposed to be a big year for the WWE.  With the launch of its network and its media rights fees up for grabs, the company stock skyrocketed on speculation that the company would become an instant revenue-generating machine.  The stock went as high as $31.39 in March but fell to $10.85 just two months later due to market realities.

WWE Network Launches

In February, the WWE launched it’s over the top network which came with much anticipation and fanfare.  Despite technological issues from launch, people were still bullish on the network.  But the momentum came to a halt with the reveal of the first subscriber numbers.  With a target of gaining 1 million subscribers by the end of 2014, the WWE officially reported just slightly over 667,000 at the end of the second quarter.  It then just grew to 731,000 viewers at the end of the third quarter.

The WWE initially offered the network for $9.99 with a 6 month commitment.  It’s key selling point from the start was that those who signed up would receive Wrestlemania for just $9.999 instead of the traditional price point of $60-$70.

After sluggish numbers, it allowed a free month preview in November.  It also eliminated the 6 month commitment so that no one would be latched on by a 6 month commitment.

It was known that the WWE would lose money this year due to starting the network and essentially losing its PPV business.  But, it appears at this point it overestimated the subscriber interest in the network.  With the rollout of the network in other countries, the WWE hopes that its subscribers will grow as well.

Wrestlemania still an economic boon

Wrestlemania XXX in New Orleans generated an economic impact for the region of $142.2 million which is a record for Wrestlemanias and the third straight year it has generated over $100 million in positive economic impact for its host city.  With Wrestlemania available on the WWE Network and on PPV, the total amount of viewers exceeded 1 million.

WWE renews rights with NBCU

In May, the WWE renewed its media rights with NBC Universal.  Immediately after the announcement, stock shares dropped which would indicate that the deal was not near what investors had wished.  The initial hope was to double its prior deal of $140,000 to $280,000.  However, this did not happen.  Low advertising rates and the negative perception of its programming likely held back the WWE’s hopes for a NASCAR or MLS-like deal.

Ring of Honor on PPV

In June, wrestling promotion Ring of Honor tried its hand at traditional PPV.  It was a way for ROH’s parent company, Sinclair Broadcasting, to see where it could take the company.  Dave Meltzer of The Wrestling Observer reported 10,000 buys which was the break even mark for the company.  In comparison, kickboxing organization, Glory only had 6,000 PPV buys for its PPV held the same weekend in June.

TNA Wrestling leaves SpikeTV

In July, TMZ Sports broke the news that Spike TV was not renewing Impact Wrestling for 2015.  Despite initial reports that the sides were still negotiating an extension, it was confirmed that 2014 would be the end of the road for the 2 hour show on the network.  In November, TNA announced it had signed a pact with Discovery Communications for its show to air on Destination America starting Friday, January 16th.  Coincidentally, it is the same night that New Japan Wrestling premieres on AXS TV.

Lucha Underground debuts on El Rey

A new lucha libre, telenovela-style show backed by Mark Burnett (of Survivor and The Apprentice fame) debuted in October.  The show was made available in English and Spanish.  It has received rave reviews although the ratings have not mirrored the praise.  It is a different type of show which infuses drama and action.

Former wrestler sues WWE in first concussion lawsuit

In October, former WWE wrestler Billy Jack Haynes sued the WWE claiming that the company knew of the inherent risks its wrestlers took when it allowed them to perform stunts which included taking shots to the head causing head injuries.  Haynes and his attorneys are seeking class action status.  The lawsuit, filed in the federal district court of Oregon, is ongoing and the WWE lawyers have requested an extension of time to answer the Complaint.

New Japan Pro Wrestling

The Japanese wrestling promotion will make its way to American television in January 2015 as it will appear on AXS TV starting Friday, January 16th.  13 episodes will run on the network and will have the broadcast team of Mauro Ranallo and Josh Barnett dubbing in the commentary.

In following in the footsteps of the WWE, New Japan unveiled its own over the top streaming network for 999 yen or $8.40 U.S. Wrestling fans may start to see more of New Japan in 2015.

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