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.
On the positive side: They continue, as always, do do absolutely phenomenal ratings on cable. They are a consistent huge draw there. PPV sales were up last year. I think they sold around 4 million buys total for 2012. Just over a quarter of those came from their WrestleMania event.
On the negative side: Five years ago today their stock was valued at $15.40 per share. Today they are valued at $8.40 per share.
Even with the UFC being down in PPV buys in recent years. They still sold 6 million PPVs in 2012. Thats an average of about 450,000 per PPV. NOt very bad considering the multiple brazil cards that always hurt sales and many cards were headlined by small guys who are new to the UFC. This did around 200K on average but the total sales and average stayed respectable.
Hard to believe how the WWE PPV business has declined. Wrestlemania really just hides a collapsed market for the WWE. Without Wrestlemania. The remaining 11 WWE PPVs averaged about 200K buys.