The effect of WrestleMania on WWE's share price

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The effect of WrestleMania on WWE's share price

Post by Prometheus on Tue 31 Mar 2015, 3:19 pm

I think most of us were broadly in agreement that the build to WM could have been (much) better, but the showcase event delivered. All except WWE's investors, who disliked WM so much the company's stock dropped by 16% yesterday.

While I'd love a bunch of guys in suits to be complaining about the use of the NWO or getting upset about Big Show going over, I expect it was the results of the Network numbers that got them upset. And I think you could argue that maybe a better build to WM would have increased these.

Now, I have to give a full disclaimer that beyond watching Wolf of Wall Street, I know nothing about financial markets or trading. But, I don't think that WWE were going to be able to produce a number that would make the market happy. This is the same market where the stock jumped when WWE announced it had past the 1M mark at the end of Jan and they put on 30% to that number and the stock goes down.

I think what WWE will announce shortly is that with PPVs this was the most watched WM in history. And it should be because that 9.99 price point is pretty low compared to what consumers in the US would have been paying for Mania. What is going to be important now is for WWE to try to hold onto those numbers, because with no commitment it is easy for fans to see the Network as an alternative vehicle for delivering PPV content and once that event is bought and watched to unsubscribe.

I think we as wrestling fans should be in for an exciting year. We all know that WWE can drop the ball. But next year's WM is even bigger. Vince has to be looking to try to get near 2M subscribers for that, and that means WWE has to deliver "must see" Network content to its Raw audience. Vince is delivering another free month in April, but he has to be keeping an eye on those network numbers and if they dip then he's got to pull out a good couple of PPVs to keep people in. I think it will also be why we see some involvement of Austin at WM next year to pull in those lapsed fans, them pushing ahead with Ronda Rousey to take advantage of her profile and draw and of course Rock (looks like the teased angle will be Rock/Rousey vs HHH/Steph). And, if I were Vince, fans might not like it but Batista is going to be in a big movie again, so I'd not be putting him in the ring as a main eventer, but I can see him re-appearing later in the year.
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Prometheus

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