The Wrestling Post – 05.14.13

May 14, 2013

Welcome to another edition of The Wrestling Post.  This week we take a look at the WWE’s online move to Yahoo!, a pro wrestler gets in trouble on twitter and TNA moves one hour later while Bellator goes to Wednesday nights.

WWE moves content to Yahoo! Divas get own show on E!

Variety reports on Yahoo!’s partnership for showing exclusive WWE content online. Earlier this month engaged in a content agreement E! Television. Despite its time on YouTube, the WWE passed on being one of the new channels on YouTube’s fee based subscription service.

As if there wasn’t enough wrestling on Monday night, Yahoo! will air a 30 minute pregame show for Monday Night Raw among other original content.  The deal includes Yahoo! having access to the WWE’s library.  The Big Show and Stephanie McMahon made an appearance at the upfronts for Yahoo!  WWE content should make its debut this summer on Yahoo!

In addition, the WWE Divas will have their own one hour reality show on the E! Network. Presumably, it will follow the women of the WWE backstage and through their “real” lives.

Payout Take:  The new Yahoo! deal is an interesting switch from YouTube as the two parties decided not to renew its deal.  WWE has opted to stick with an ad-based model (relying on ads for revenue) for its online content rather than join YouTube in a subscription-based model.  As we know, the UFC and TNA Wrestling have pay channels in YouTube’s pilot program. Perhaps the WWE did not want to have fans to spend money on a subscription-based channel when it plans to have its own network to subscribe to soon.  It could also be that the WWE saw more of advantage with ad revenue than subscriptions.

ROH disciplines its Champion for Offensive Tweet

The Wrestling Post does not usually cover independent wrestling organization Ring of Honor but its champion, Jay Briscoe, got into some hot water after making some controversial tweets about gay marriage.  Briscoe, a native of Delaware, reacted via twitter to the recent passage of his state’s new law allowing gay marriage.  Essentially, he’s not a fan of it.

In an effort to make things right, Ring of Honor made Briscoe apologize in the ring and he indicated that he would make a donation to an anti-bullying organization.

Payout Take:  Even in the independent wrestling circuit, protecting the brand of the company and its image is necessary.  The actions by Ring of Honor may not have happened on the independent circuit 10 years earlier.  But, in an effort to be more inclusive and realizing that the world is much more accessible via the internet (i.e., people from all over the world can buy its DVDs, iPPVs, t-shirts, etc.) the organization made a decision to have its wrestler make a real apology.

TNA Moves to 9pm while Bellator moves to Wednesdays

In a move that will have more ramifications than just the wrestling show, Spike TV has decided to move TNA’s Impact Wrestling to 9pm/8pm Central on Thursday nights starting May 30th.  The network announced that Bellator would move to Wednesdays starting with its Summer Series in July.

Payout Take:  Maybe its a move for daylight savings time as many people will be outside enjoying the extra daylight and not inside watching TNA.  We will see how this will impact ratings.  For Bellator fans, how will moving to Wednesday nights affect its programming?  There was not much proven correlation between TNA as its lead-in as Impact had a bigger audience that seemingly tailed off once Bellator came on.  Yet, having a strong lead-in may mean more viewers checking out the Bellator product.

The Wrestling Post – 03.22.13

March 22, 2013

Welcome to another edition of The Wrestling Post.  This week we take a look back at a fight Dana White turned down, Wrestlemania is $70 and an interesting lawsuit involving the independent contractor/employee question.

Vince challenges Dana

One of the stories that was buried under the Nick Diaz press was Dana White revealing that Vince McMahon asked him to do a match with him at Wrestlemania 27 in Atlanta.  Wrestlemania, the annual big event for the WWE usually pulls out all the stops including celebrity participation.  Instead of White, the WWE had the Jersey Shore’s “Snooki” participate in a match.  Previous celebrities included Donald Trump, Mike Tyson and host more.  White smartly turned down the offer from McMahon.

Payout Take:  Despite being different, the two organizations seem to always be connected. White seems to have respect for McMahon and perhaps vice versa.  While we may criticize White for many business decisions, declining the spectacle that it would have been was the correct choice.  Although it would have helped with UFC publicity, it would have made the two organizations synonymous which the UFC definitely does not want to do.

PPV model to go away but it will be $70 for Wrestlemania 29

WWE Chief Financial Officer George Barrios speaking to financial web site 4-traders.com indicated that the WWE’s pay per view model will eventually go away.  This seems to be based on the hopes of the launch of the WWE Network which still does not have distributors or a launch date.  Presently, the WWE plans to run its usual PPV events on the subscription based network with the exception of Wrestlemania in addition to running its events on regular PPV.  However, Barrios believes that those PPV fans will “migrate” to the WWE Network.  At some point, pay per view will eventually go away.

In the meantime, Wrestlemania 29 has been priced at $70 for the 4 hour event.  This is a rise of $5 from last year and is on par with the Pacquiao-Marquez IV fight in December.

Payout Take:

The WWE seems to have gone all in on the WWE Network as it appears that they are set on having a network which will do away with its PPVs.  Obviously, the “migration” of its fans is key to its success.  I tend to think that the WWE’s PPV business is just one revenue stream of its business now and that the statement should not be surprising.

As for the $70 for Wrestlemania, I would think that the UFC is looking at this and seeing how successful the event is in terms of buys to see if it could raise its price point in the future.  I think that this would be unlikely in the near future but something it could look at down the road.

Former TNA Wrestler Daphne settles injury lawsuit

An interesting lawsuit was settled at mediation earlier this month as Former TNA wrestler, Daphne, decided to settle her case with TNA instead of moving forward to trial.  If the former wrestler had moved to trial, the first issue that would have been decided was whether the wrestlers are independent contractors or employees.

Shannon Spruill, Daphne’s real name, sued TNA for medical bills exceeding $26,000 from an in-ring injury.  According to Spruill, she was promised that her bills would be paid by TNA but in the end, they were not.

Payout Take:

I will try to obtain a copy of the lawsuit (which I believe was filed in Tennessee state court) but the issue of independent contractor versus employee has come up again.  The independent contractor status is something that has been used in professional wrestling to the detriment of the wrestlers.  In MMA, most organizations, including the UFC, have its fighters as independent contractors and not employees.  The UFC does offer its fighters under contract insurance which would have helped Spruill here.  If Spruill and TNA had gone to trial on the issue of independent contractor/employee, it would have certainly raised some eyebrows if the court had decided she was an employee.  Moreover, it would have opened up a ton of discussion (i.e., lawsuits) within the industry.

The Pro Wrestling Post – 02.07.13 edition

February 6, 2013

Welcome to another edition of The Pro Wrestling Post.  In this edition, we take a look at the dismissal of a lawsuit, what’s next for the future of WWE video games and its YouTube channel tops 1 million subscribers.

TNA dismisses lawsuit against WWE

In mid-January, TNA dismissed its lawsuit against the WWE as the parties settled the case out of court. The case was based on claims that a former TNA employer that was hired by the WWE provided the WWE with confidential information he obtained while a TNA employee.  Despite WWE turning over the documents, TNA claims it took the WWE three weeks to provide them with the documents and used them in attempting to acquire TNA talent, notably Ric Flair.

The parties quietly agreed to dismiss the lawsuit without further fanfare.  TNA had requested to depose the likes of Triple H and Ric Flair to determine the extent the WWE knew of the documents provided by the former TNA employee.  

Payout Take:  It appears that cooler heads have prevailed in this standoff without any heated depositions.  TNA believed that the WWE would use the documents as leverage, but as it stands now, Ric Flair is the only notable TNA contracted performer (at the time of the allegations) to have made an appearance with the WWE. Flair had been on the outs with TNA and is only making occasional cameos with the WWE.

Take Two to buy WWE video game franchise

Kotaku reports that video game maker Take Two, owned by 2K Sports,  will purchase the WWE license to make its video games  As you recall, THQ holder of the WWE’s rights to make its video games filed for bankruptcy late last year.  The WWE is an unsecured creditor, owed an estimated $45 million by THQ.

Payout Take:  It will be interesting to see what video titles the WWE will release (if any) this year.   There is debate as to whether Take Two will produce an arcade style game or a simulation game.  It will be interesting to see how this acquisition will affect the WWE’s business in this sector.

WWE tops 1 million subscribers

The WWE announced that it hit 1 million subscribers on its YouTube channel this past week.  A press release by the WWE marked the accomplishment. It is one of the top 15 most influential brands in social media.

Payout Take:  While the UFC is one of the pioneers of social media to promote its sport, the WWE has invested in it and developed new ways in reaching its audience. Its partnership with YouTube and producing original content on its channel has been a success.  I think one of the markets it may have tapped into is the cord-cutters and the youth that feel as comfortable in front of a computer screen (or tablet) to watch “television.”  The 1 million subscribers also speaks to its global reach, something the UFC is still in the infancy stages of developing.

The Wrestling Post – TNA goes to just 4 PPVs a year

January 12, 2013

TNA Wrestling has announced that it is restructuring its PPVs for 2013 and will only have 4 instead of 10.  It will now have PPVs in January, March, June and October.

Late last year TNA had announced that it was reducing its PPVs from 12 to 10.  Only a month or so later it announced it would only have 4.  However, the wrestling organization announced that it would tape 3 hour specials which would be available on PPV for a reduced rate of $20 a month.  This would compensate for the 3 less hours per month of content for its international distributors.

TNA will continue to air its 1 hour Video on Demand programs entitled “Unfinished Business.”

TNA Impact Wrestling

TNA One Night Only


Payout Perspective:

Notably, DirecTV is not carrying TNA’s Genesis PPV on January 13th.  Its not clear the reasons for the abrupt change in strategy.  TNA Wrestling is still pulling ratings at an average of over 1 million viewers a week nd will be the anchor for Thursday night combat sports viewing on Spike TV.  It will serve as the lead-in for Bellator.  But, the move away from PPV and focusing on pre-produced content may be seen as a cost-saving measure. The new alternative, “One Night Only” 3 hour specials for a reduced rate might be attractive to the TNA fan interested in seeing more but not wanting to pay the $50 for a PPV.

The “less is more” strategy may help with overall PPV buys as the company can focus on developing its characters and storylines in leading up to the PPVs.

The Wrestling Post – 12.15.12

December 15, 2012

Welcome to another edition of The Wrestling Post.  This week we look at TNA’s venture into lottery tickets, reduction in PPVS and the WWE’s iPad App.

TNA agrees to pact with lottery ticket maker

MDI Entertainment, LLC has signed a deal with TNA wrestling for lottery branded scratch tickets with images of TNA stars. The agreement includes images on promo materials as well as the possibility of personal appearances and public service announcements.  The agreement includes the possibility of second chance prizes including the possibility of TNA merchandise and/or trips to TNA events.

IMPACT_TNA_Roode_v2_medium

(H/t:  Cageside Seats)

Payout Take:  A good partnership for both companies as it allows some promotion of the TNA brand and it gives the company some exposure to a greater population of people.

WWE’s iPad App offers second screen experience and PPVs

Last week, the WWE began promoting a second screen experience entitled “WWE Active” which allows users of the App access to additional information including polls, trivia and the opportunity to watch backstage features during the live edition of RAW.  In addition, the WWE announced that users could eventually order PPVs on the App which would allow mobile access to watch WWE PPVs

Payout Take:  The WWE iPad App is very popular with 2.7 million downloads in 215 countries.  Having used the app, it definitely is one of the better free downloads for iPad users.  The move to utilize the app to include additional original content allows more interaction with its fans.  The PPV component is one way to monetize the app and give fans another way to access the WWE.

TNA reduces PPV schedule

The Wrestling Observer (subscription required) reported that TNA Wrestling will be reducing its total PPVs for 2013 from 12 to 10.  This would allow for better buildup between pay per views.

Payout Take:  Less is more.  This is a good move by the company as it can build on storylines and hype the matches for a PPV.  The move should help with overall PPV sales for the year and shave down production costs for two less PPVs.

Bellator moves to Thursdays

December 11, 2012

Bellator officially announced its debut on Spike TV for Thursday night, January 17th.  It will be in a two hour block starting at 10:00PM PT/ET.

Via Bellator Press Release:

Emanating from The University of California’s Bren Center in Irvine, CA, featherweight world champion Pat Curran defends his title against explosive knockout artist Patricio Pitbull, while lightweight world champion Michael Chandler battles former Olympian Rick Hawn in their highly-anticipated Bellator Championship showdown.

The action-packed night also features the Bellator debut of decorated MMA veteran Renato “Babalu” Sobral, who will fight in the quarterfinals of the Light Heavyweight Tournament against Russian submission ace Mikhail Zayats.

“Our Thursday, January 17th premiere on Spike will be an incredible night for MMA fans; two epic world title fights and an amazing collection of tournament fights” said Bellator Chairman & CEO Bjorn Rebney. “Spike TV is the home for MMA and this event will be a great way to kick off that homecoming.”

Payout Perspective:

With the UFC announcing TUF’s move to Tuesday nights on FX, Bellator made its departure from Fridays official.  It will be interesting to see how each does on its new nights. TNA’s Impact Wrestling will be the lead-in for Bellator.  We’ll see how the new network and new time slot does for ratings for Bellator.

ESPN Poll shows MMA big in key demos

October 8, 2012

The Sports Business Journal and Figure Four Online examined the annual ESPN Poll which took a look at the popularity of Boxing, MMA and professional wrestling.  The poll suggests that MMA is primed to take over the fight landscape.

The conclusion is that the UFC is primed to take over boxing and it is buoyed by its brand dominance.

The ESPN Poll is based on 5,146 interviews from January – July 2012.

The Poll

Below are some interesting insights from Rich Luker, the founder of Luker on Trends and the ESPN Poll.

Almost half (48%) of Americans ages 12 and over are fans of one of the forms of fighting explored here:  boxing, MMA and/or professional wrestling.  75% of the fight fans follow 2 or three types of fighting. 58% of fans describing themselves as “avid fans” have interest in two or three fighting forms.

Despite its Fox deal and appearing quarterly on network television, the poll reflects the fact that MMA has not surpassed boxing in terms of fans.   Although MMA was ahead of boxing from 2007-2010 in terms of avid fans, boxing surpassed MMA in 2011.

Key Demo Numbers

The ESPN Poll points out there are several factors culled from the poll that reflect the fact that MMA is the fighting sport of the future.

Specifically, it is the 13th-largest general fan base and eighth-largest avid fan base, “which is remarkable at a time when  it is hard for a new sport to emerge,” according to the SBJ.

Also, an average of 60.5% of those polled ages 12-54 are a fan of MMA and a little over 24% of fans ages 12-54 consider themselves avid fans of MMA.

Looking at the 2012 numbers, when asked if you had any interest in the sport, in the most important male 18-34 demographic MMA has a slight lead over boxing.

Boxing:  M18-34  66.6%

MMA:    M18-34  67.4%

Pro Wrestling:  M18-34  35.6%

For women 18-34, MMA has a bigger lead over boxing.

Boxing:  W18-34  41.2%

MMA:  W18-34   44.0%

Pro Wrestling:  W18-34  24.6%

One of the takeaways made by F4WOnline is that boxing and MMA get its fans to attend events, while pro wrestling (i.e., WWE) gets its fans to watch its weekly shows.

Would MMA dip like World Series of Poker?

Remember WSOP? The craze in which the unthinkable happened.  People watched other people play poker.

The poker craze saw incredible ratings and then the ratings treated.   The SBJ cites the fact of the lack of personal investment in the game, rather more an instructional video on how to play poker than interest in the sport.  Personally, two more reasons hurt the sport.  First, the investment in following a poker player was hard to do if a favorite such as Phil Hellmuth, is eliminated in the first day of the World Series of Poker.   How does television produce around that?  Secondly, the ban on online gambling negated interest since many casual people were willing to try on their computer but not in a casino to play.  When legislation was passed to stop online gambling, many saw no reason to watch.

Women on the Rise

The article notes that women interest in MMA could be a key component to the future.  The poll states that women’s interest in boxing from 2002-2012 is up for women.  The avid interest in women ages 12-54 is stronger in MMA than older men 55 and older.  The rise of women participating in boxing and MMA is cited as the reasons for the increased interest.  This is the reason why we see Ronda Rousey at every UFC event and why she is the future of women’s MMA.  It is also why we’ve seen the interest in InvictaFC.

Speaking with Fertitta

ESPN asked Lorenzo Fertitta about the UFC’s numbers being down over the past two years and Fertitta noted the fighter injuries, the switch to a new network and reestablishing its relationship with the fans on television.

Dave Meltzer offers his opinion on the poll via F4WOnline (subscription required and highly recommended):

My theory about the wrestling audience changing is that it has a super loyal audience, the same basic people; Raw has its audience, Smackdown has its audience. Impact has its audience. Every now and then, like if The Rock comes back and it’s advertised well, or Raw 1,000, or any kind of nostalgia theme, you can pick up the Raw audience. But they seem to have very little interest outside of their group. In the past, we used to joke about casual fans, who watch every now and then, but are aware of many if not all the big names. Pretty much any sports fan could tell you the names of the top wrestlers then who were active, but if you ask today, past John Cena, any names mentioned are going to be stars from another era. That’s the difference between Ric Flair showing up at an NHL game in 1989 (or even 2012) and people mobbing him, and C.M. Punk or the Miz doing so today , and nobody knowing who they are.

There are more people aware of boxing because it’s covered as a mainstream sport, but people don’t watch it weekly on television. They only care about two guys now, and in MMA, you have the mix.

Payout Perspective:

An astute observation on the key audiences by Meltzer.  And something that each of the sports would like to change.  The WWE is criticized at times for not pushing certain talent while recycling older talent.  But, it’s easier to sell HHH and the Undertaker more than CM Punk and Sheamus.  This is true especially for the SummerSlams and Wrestlemanias.  Its why Brock Lesnar or The Rock are much safer bet to main event these shows than a Dirk Ziggler or Daniel Bryan.  But, the WWE has the necessary platforms to give one of its stars the necessary push.  It still takes time for this to happen.

For as much as we’ve asked whether boxing is making a comeback, it appears that it made it back to overall popularity in 2011. Moreover, the numbers reflect that boxing has not really dropped in popularity.

The rise of women’s interest in the sport should resonate with MMA and MMA brands.  Ronda Rousey is the face of women’s MMA and has been a good ambassador for the sport of women’s MMA.  Rousey has a following of young women that follow her because of their interest in the MMA.  If we have not seen it already, fight apparel and gear will take more a focus in marketing to women.

We shall see what the UFC can do to cultivate more stars for fans to follow.  Interesting that Dana White has had run-ins with two of the organizations biggest stars:  Anderson Silva and Jon Jones.  Moreover, White threw Jones under the bus for UFC 151 before cooler heads prevailed.  That’s not a way to promote a star.

 

The Pro Wrestling Post: WWE Main Event ratings, TUF gets slammed and King Mo’s debut

October 4, 2012

Welcome to another edition of the Wrestling Post.  This time we take a look at the WWE’s new network show, Slamming TUF ratings on RAW and the King Mo’s debut on TNA.

WWE Main Event rating

The WWE’s newest show on the ION Network, “WWE Main Event,” airing on Wednesdays from 8-9pm earned high ratings in its most important demos during its debut this week.  It scored the highest male audience in the last year on the network with the most Men 18-49 (422,000), Men 25-54 (444,000), and Men 2+ (876,000).

Payout Take:  The debut had exceptional ratings in part by having two of its top main eventers (CM Punk vs. Sheamus) star in the debut so it is likely that the ratings will decrease considering the fact it cannot have those type of events each year.  But, the ratings show growth for the network and another platform for the WWE brand.

WWE shows its smacking down TUF

On this past Monday Night’s RAW, the WWE ran a graphic which showed that Friday Night Smackdown on the SyFy Channel had 3 times as many viewers as TUF on FX.  The graphic was shown touting its social media supremacy.

Payout Take:  A valid statement that the UFC should take notice.  It shows that Friday night is not an excuse for ratings.  I find it interesting that each time the WWE takes a shot at the UFC, White does not respond back as he does to media reporters.  Perhaps he realizes who he’s dealing with and wants to stay in his own lane.

Lawal upset with Zuffa matching rights

King Mo Lawal made his debut on TNA Impact  Thursday.  As you recall, Lawal will be doing pro wrestling with TNA and then fight for the Bellator promotion.  Lawal signed with Bellator on May 10 will not participate with the organization until 2013.

MMA Junkie reported on Zuffa’s promotional agreement which feasibly could have retained the rights of Lawal after he was released.  Ironically, the issue occurred in Bellator as Tyson Nam threatened litigation against Bellator as he was being held out of its tournaments while having opportunities go by the wayside due to the fact that Bellator retained his rights under contract.  Dana White has been critical of Bellator for holding fighters like this.  However, the UFC/Strikeforce have similar clauses and Lawal and his agent question why it is in the Zuffa contracts.  Lawal’s agent had called White to see if the UFC/Strikeforce was still interested in retaining Lawal despite being cut.

Payout Take:  Bad feeling between White and Lawal remain.  Matching rights essentially is a right of first refusal which allows the company the opportunity to retain the person under contract usually by matching whatever offer is made to them.  According to MMA Junkie, most MMA organizations including the UFC, Strikeforce and Bellator have them.  The UFC explained its need to retain the rights of those that leave the promotion but in the form of video rights.  Essentially, the UFC retains its rights to the images while the fighter was in the UFC.  But, it does not explain why it continues to have a matching rights clause for fighters when it does not plan to exercise it. The fact is with all of the injuries, the UFC may have to enforce this clause to retain some healthy fighters for its events.

As a postscript, Roy Nelson sent out a tweet to his followers to watch Lawal tonight on Spike.  The UFC probably is not happy about that tweet.

The Wrestling Post: The Hitman seconds Ring; new WWE IR channel; TNA show cancelled

July 20, 2012

Welcome to another edition The Wrestling Post.  In this edition, Nick Ring gets a boost from Bret Hart, the WWE unveils its Investor Relations channel and a TNA show is axed.

Bret Hart to walk to Octagon with Ring

Nick Ring will be escorted to the ring by hometown hero, WWE superstar Brett Hart (via UFC Canada Twitter). “The Hitman” is one of the most famous  wrestlers in the past 25 years.  Ring, a native of Calgary, made news earlier in the year by thwarting an assault in his hometown.

Promise and The Hitman

Payout Take:  The crowd should give Ring and Hart a nice pop when they walk to the ring.  Despite the abbreviated entrances for the Prelims, I’m sure the UFC will find a way to include the walkout for this one.

WWE launches investor site

Earlier this week the WWE launched investor relations channels over its social media platforms:  Facebook, Twitter and YouTube.  The purpose, according to the WWE press release, “ is to facilitate a more comprehensive understanding of WWE’s strategy, operations, performance and customers.”  The press release states, “you can find timely updates of important financial developments, such as our upcoming earnings announcement, on Twitter, and a video presentation demonstrating the strength of our diverse global businesses on YouTube.”

Payout Take:  Transparency through social media.  The WWE is ahead of the curve when it comes to social media and it has found creative ways to utilize the platform.  As it sees the ways to communicate shift, it is utilizing the platforms to become more effective in getting its information out.

Spike TV cancels TNA Rewind after one episode

Maybe Spike TV should have waited until the DirecTV-Viacom dispute was over.  But, Spike TV decided to cancel the third hour of its TNA wrestling lineup on Thursday when it got rid of TNA Rewind after one episode.

Payout Take:  The review show scored very low ratings for its one and only showing.  Interesting that the show was on a short leash.  One would have thought it would be given a month before pulling the plug. Regardless, 3 hours for TNA seems like too much in one night to digest.

Direct TV-Viacom impasse means Spike TV, MTV, other channels blacked out

July 10, 2012

Ad Age reports that negotiations between Direct TV and Viacom have reached an impasse and Viacom-owned networks on the DTV will be pulled July 10th at midnight as a result.  For MMA and pro wrestling fans, it means that they will be left without Bellator and TNA Wrestling until an agreement can be reached.

The blackout would affect DTV’s 19.9 million customers.  Viacom made the impasse known in a blog post on Monday.  The contract between the two actually ended June 30th but was extended 10 days in attempt to reach an agreement.

Via Viacom’s blog:

Viacom is asking DirecTV for an increase of a couple of pennies per day per subscriber. That’s far less than DirecTV pays other programmers with fewer viewers than Viacom. Viacom has always been open to negotiating and hopes to get a deal done

Direct TV counters that Viacom is asking for 30% more than it already receives which DTV states is $1 Billion more per year. It also pressures for an “a la carte” structure in which viewers can pick and choose Viacom channels it wants.

DTV has set up a link which helps viewers find “Other Ways to Watch” Viacom programming.

In addition to MTV, Nickelodeon and Comedy Central, SpikeTV will be blocked off from viewing for DTV customers.  Its the latest in the fight over retransmission rights:  the price a distributor (e.g., Direct TV) pays for a bundle of channels from a programmer (e.g. Viacom).  As programmers seek higher fees, distributors have challenged the rate hike.  The public fight results in a PR war and a game of chicken to see which company will concede.

The Ad Age article quotes industry analysts which predicted this dispute as ratings pressure on networks such as MTV and Nickelodeon have led to distributors to drop its channels.  Ratings on some networks have dropped causing distributors to rethink the bundling practice.

The popular AMC (“Mad Men”) channel was dropped by The Dish Network recently due to the fact it had to carry other low-rated networks.


Payout Perspective:

It appears that carriage disputes are becoming more common and as there are more ways to watch programming such as video on demand, online, iPads and mobile devices, programmers become concerned with the ratings for some of its networks.  For distributors, the concern is that it has to pay for programming bundles and push for a “pick and choose” way of accessing networks.  Of course, one might argue that distributors do not pass along the “pick and choose” networks to its subscribers and we must choose from a tier system.
What it means for combat sports fans is that DTV fans may be without access to Bellator and TNA Impact Wrestling.  This would hurt both companies considering Bellator’s build toward Spike TV.  Fortunately, it’s in its summer season and there are only a couple events scheduled for MTV2.  And those can be seen on Spike.com.  For TNA Wrestling, it is moving to 3 hours and just instituted a live format.  There’s more than TNA could lose considering its new changes while Bellator seems to be in a holding pattern until 2013.  While both programs are likely to be accessible over the internet, it forecloses a huge portion of the American viewing audience.

We will keep you posted on whether the blackout will happen.

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