Vince is Ready for WWE Relaunch

[ryan86]

Part 1

WWE, for the past 18 months, has gone through a cleansing process.
For those of you who follow economics, you know exactly what I am referring to. Historical references would include 96 and 97, along with 03 and 04 as the most recent examples.

You build a "bubble" of popularity, IE: 98-00/05-09, and when it burst; as in the case of 01 and 10, you immediately institute a business policy of "Creative Destruction". This is the cleansing process. It was delayed by 2 years following the AE, as Vince interfered with the process by centering the product around "quick fixes" with obsolete angles and wrestlers.

The WWE hit bottom in mid 03 and spent the next 18 months going through the cleansing process. If you are lost:

- Creative Destruction: Invention of new poducts that generate new wealth but destroy the obsolete products, with the benefit of the company as a whole.

- Cleansing Process: Taking the initial hit and lost revenue, to rebuild the product in a natural manner without interference.

Next

 

[ryan86]

Vince just might be with-in striking distance of the finish line. The time line is on point but not yet complete. And something that really was a blessing for the process was the Randy Orton injury. The WWE is very smart to keep on track with what they have going and I commend Vince for disregarding the ratings. Things must bottom out and the grass-roots must rebuild it. It can't be manufactured out of WWE headquarters. And this is the best grass-roots rebuilding process that I have seen since 1997.

John Laurenitis and Punk is something that can play out through-out 2012, with the immediate beneficiary being Dolph. Who is in position to play top heel on Raw. On SD, Cody is in prime position to do the same. I think it is safe to assume that 2012 will be the year of Cody and Dolph.

Wade Barret and Sheamus are very important for international appeal, as is Del-Rio. Stars like Drew and plenty other international guys will only grow in imprortance and bring in new wealth. Over seas PPV buys make up 65% of buys

 

[ryan86]

Part 3

All-in-all, I dont see the WWE ever reduplicating the sucess of the AE. Getting 7% of household is just about impossible for cable programming these days. I think the WWE can get back to the 4.8 range, and from my analysis, they have finally gone through the process to allow a relaunch. And if they did get there, which would take a steady popularity rise over the next 18 months IMO, who knows how far they could go?

I can remember back in 99, when the WWE took off from the 5.0 range, straight to 6.8's and 7.0's. But a rise this time will be much slower with no other company to gain viewers from, but in IMO, it will make the next "Bubble" last just a little longer.