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This Paper Looks At Marketing Issues In The World Wrestling Entertainment

1655 words - 7 pages

Stone Cold. The Undertaker. Grandmaster Sexay. The Rock. Y2J. Do these sound more like the names that you would find in a children's cartoon strip, rather than the copyrighted property that is the foundation of a multimillion dollar global corporation, whose product attract over 7 million viewers every week? As crazy as that concept is, you have to look no further than Stamford, Connecticut and the glass encased building on Interstate 95 that houses the World Wrestling Federation Entertainment (WWFE) headquarters. It is within these walls that the ideas are formulated, the storylines created and the plot is developed , resulting in the finished product that is produced for the millions of fans who tune in Monday and Thursday nights for the latest installments of the never-ending, larger than life made sagas involving their favorite personalities. But what exactly is the product that the WWF produces? Many argue that is made for TV violence or provocative trash, while others contend that it is the male version of a soap opera. Regardless of the personal view, it remains evident in the company's financial statements and reporting that whatever it is you feel they are producing, it is well liked universally and is extremely popular in the consumer market. And the industry itself, with WWFE as the leading advocate, has recently come to acknowledge itself for what it basically is at it's core - entertainment. The WWFE produces a bi-weekly television show that is called professional wrestling but in reality is theater. It is theater that consists of macho characters and personas that engage in outlandish scenarios and stories, and is it acted out every week by well paid performers who are, in essence, the companies main assets. These performers, their charcters, their personas and themes that are developed by WWFE are primarily responsible for the generation of the company's revenues that yearly exceed 300 million. An analysis and comparison of the company's financial statements for the years 2000 and 2001 show why the WWFE has become an entertainment industry giant and why it was well received on Wall Street during it's 2000 initial public offering. When examining the financial statements for WWFE, we used the fiscal years 2000 and 2001, which run from May 1st, 1999 to April 30, 2000 and May 1st, 200 to April 30, 2001, respectively. WWFE reported 456 million dollars in net sales revenue for 2001, an increase of 76.7 million (20%) from the 379.3 million dollars it reported in net sales revenue for the fiscal year 2000. This increase was mainly due to an increase of 70.2 million in revenues from their live and televised entertainment activities, which is actually defined and broken down into several segments to show where this increase was generated. Revenues from their domestic and international television rights fees increased by 23.1 million, and was a result of a new agreement with television giant Viacom, which produces WWFE's newest entry into...

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