Eric Bischoff Explains The Business Reasons Why WWE Changed To PG
The following is from Eric Bischoff’s blog and goes on to explain why WWE may have changed to a PG rated show:
First, the PG rating strategy. WWE is a television company. No one reading this blog will find himself or herself enlightened by this statement. Without a meaningful television platform, WWE would dry up and blow away. Fast. Pay-Per-Views, (a substantial percentage of the companies revenues) would disappear. Live events, arena merchandise, and licensing would follow shortly thereafter. Without a substantial television platform, wrestling, as we know it would be dead in very short order. This isn’t earth shattering inside knowledge.
But now replace the word “television” with “advertising”. Because without a profitable advertising schedule within a given program, networks cancel said program. This means that WWE, and more accurately, USA Network are in the advertising business. Last I heard USA Network controls the inventory of the commercial schedule within WWE programming. That means their ad sales people are out in an extremely competitive market place, trying to sell the ratings and demos delivered by WWE.
Admittedly, I do not have access to current WWE rating and demo information, but while WWE delivers substantial ratings against the 18-49 male demo, advertisers don’t pay top dollars for them (referred to as cpms or “cost per thousands”). The reason? The 18-49 male demo is easily reached by so many other programs, that the value of that demo in the market place is reduced as a result of a kind of supply and demand.
Kids (6-11) and women…..now that’s another story!
From what I remember, WWE delivers some pretty significant numbers in the kids/women demo. But advertisers are reluctant to spend dollars targeted towards this demo inside of programming with a rating that warns parents about letting their children watch it.
By changing the rating to PG in WWE programming, my guess is that it will be easier for USA Network ad sales to maximize its efforts selling against the ratings that WWE programming provides.
Healthier ad sales, makes a happier network and a healthier WWE. But there is a down side.
If history repeats itself as it so often does, a move to a PG rating and the content restrictions that will manifest as a result, will, in my opinion, reduce the over all ratings. Go back and look at what WWF was delivering in terms of content and ratings in the early 90s before NITRO forced WWF to abandon their “family entertainment” strategy and adapt the “Attitude” strategy. 18-49 year old men who are looking for the “Nitro Moments” or “Attitude Era” rush are going to get a softer, kinder, gentler and more cartoonish presentation.
