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If Raw is on one network and Smackdown is on another, how do you think it will work out?
Actually, there is a lot to talk about here. Let’s start with Raw.
First and foremost, if NBC U is tripling the amount that they pay for Raw, or even raising it substantially, it’s a great move for WWE. Raw generates more revenue than Smackdown now, so that would mean that the company would already be ahead of the game financially no matter what happens with Smackdown. Paying that much for the product should give USA certain rights. If I were them, I would ask for certain concessions in the deal.
*I would want some (actually a lot) of say in which talents appeared on Raw. I would want more of the bigger names, since I am paying top dollar, and I would want say in things like the Shake Up and bringing up talent from NXT. Obviously Raw can’t have everyone, but I would want more of the “top” names.
*I would also want some say in any cross promotional matches that happen on PPVs or other events.
*I would also want to control streaming rights. With the amount of money I would be paying, I would want the ONLY place that fans could watch Raw is on the USA Network. If someone is a cord cutter they will need to purchase some plan that will give them access to USA. The Hulu deal could stay since it’s part of the NBC Universal umbrella.
*I would also put a limit on what Raw footage can be run on YouTube. There are a lot of people that watch the YouTube clips and skip Raw. I would want to make that harder for them to do by limiting the amount of clips and the length of the footage that airs.
Assuming that Smackdown finds a home, which it should, the signs point to it being a lesser destination, at least from a penetration standpoint. That doesn’t mean it’s not important. If it lands on FS1, it most probably immediately becomes its top rated show, and FOX can use it to promote their other programs and bring eyeballs to the network. If it ends up on an online service, it could very well be similar to when FOX outbid the other networks for NFC games, a loss leader needed to build up the overall product.
Since the new partner will be happy to get the established product, WWE may even be able to do some things that they probably can’t do with Raw.
*If they end up on a regular network, they can try to outsource streaming rights to another outlet and see how viable the demand would be for down the road.
*They could explore partnering with the new company to see above establishing a tier service on the WWE Network that would contain only their TV shows.
*They could actually try things like booking a more NXT style product on Smackdown and see what the market is for it on a national basis, as well as take other chances to see if they are viable and then later add those changes to Raw to improve the overall product.
So to answer your question, no matter what, I think it will work out well for WWE.
Also, why is it that with ratings being down for Raw, USA is willing to pay so much more for the show?
Ratings are down for almost every show due to the fact that there are so many other options out there. A lot of millennials don’t own a TV and when they do watch, it’s via a table or phone, and not through traditional cable. Reaching eyeballs has become harder and harder so while WWE’s viewership is down, it’s still dependable and USA can plot their future knowing what they have in Raw. Consider this, NFL ratings are down too and yet FOX just gave the league a 25% raise in rights fees for Thursday Night Football. They know what they are getting with it and it’s an established product.
That brings me to the second point. In this day and age, it’s very hard to establish an audience for a new show, not to mention expensive. There’s a reason that Hollywood studies keep making Marvel movies and sequels, they have a built in audience. The same is true in TV. Roseanne, Will and Grace, Murphy Brown, American Idol, etc. They go back to the well because they hope to bring back fans of an established series because it’s easier to do than create fans of a new one.
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