Mooie leerzame collumn over TNA en hun shows enzo door Dave Meltzer
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I think if TNA produced a product that people wanted to see, they could be profitable running house shows every weekend, return to the markets and draw the same or bigger crowds, and do PPV shows that would draw 2.5% of their viewers. Considering they were doing considerably more PPV buys when on Fox Sports Net with 250,000 viewers, that tells you if they produced better quality shows and built them up in a way people wanted to buy them and enjoyed them and felt they were can't miss, the potential is there.
TNA wasn't losing money before the economy went down but there was no sign they were making much either, and the last few months they've cut back on bringing people in (not just talking wrestlers they don't use but people who help with the show and office people) for tapings and a lot of good ideas were nixed because of money being tight. They also eliminated the day off on road PPVs as a cost saving plus are doing fewer PPV shows on the road because their product is so popular they can't sell many tickets for the PPV events so make out better staying in Orlando and allowing people in free, even though everyone in the company readily admits it makes the PPVs seem minor league and hurts growth of the genre.
It's not an either/or. If they produced better television, by this point the ratings would be a lot higher. But they are in a position where Dixie, who knows nothing about wrestling, doesn't know any better, and they have no confidence in their abilities to make stars, so they put TV shows based around Kurt Angle, Mick Foley and Sting and they are big enough stars from the past that people will watch them feud for free. Maybe more will pay to see them than usual as well in the next two months.
The fact they have the stars they have, and can't do profitable house show business unless they go to mid-level and small-level cities like Spencer, IA, where the costs are low and no other wrestling comes to town, speaks volumes. And then they can only do it once a year. They came to New York, drew well once, and the second time, did worse than ROH with no TV and no stars. They can bring all their stars to Booker T's home town or to Atlanta where Sting has a legacy and still can't sell many tickets, and eventually do most of their PPVs giving tickets for free should tell you they are hardly maximizing their potential as an entertainment company.
WCW had that mentality of relying on ready-made stars thinking it lasts forever, and didn't build new stars because Eric always believed as long as he had Hogan, everything would be fine. It worked for a few years but the shelf life was short.
I don't know the number for 2008, but they made $1 million on international TV deals in 2007. It's probably up in 2008, but probably also not a lot. It's money, but it's 7% of total income and not going to save the company. They are only around because of Spike TV, so they are dependent completely on Spike not having any financial problems with the economy hurting ad sales. WWE has taken a major merchandise hit so one would expect TNA is doing so as well, and TNA was counting on videogame money that isn't going to materialize. And when push comes to shove and Spike has to decide between the UFC deal that is $33 million per year and wrestling if their budget is cut, no matter what the ratings of the two, the UFC is a prestige product in their eyes and more important to the station. UFC will have multiple suitors almost for sure when the deal is up. If TNA can't get multiple suitors, it doesn't matter its ratings, it won't get any increase because there is no need to increase. That's if Spike stays healthy. If Spike doesn't stay healthy, TNA's entire existence is at their mercy. But TNA will also continue to exist as long as Spike is healthy, because Spike helps pay the big salaries.
But you could say the same thing about UFC. They could probably cut back on live shows and run a streamlined company for $33 million per year off the Spike money if PPVs were break-even or stop running PPVs if they are money losers. Instead, they were significantly more profitable than WWE was last year because they ran a far more effective company in a business that it is significantly tougher to be successful in than the wrestling business.
Spike is happy with the ratings, but the idea that what they are doing now is maximizing ratings is a joke when you see that WWE with no thought and just throwing C team wrestlers out beat them most weeks on Sci-Fi, a network unlike Spike which is not really conducive to drawing a wrestling audience.
If they had a well rounded business, they would be building new stars who are building legacies now instead of relying on people who go on TV and talk about their glory days when they used to wrestle Shawn Michaels, HHH and Randy Orton, the real stars. And if, like WWE with MyNetwork, if their key outlet goes down, it wouldn't threaten the existence of the business.