World Wrestling Entertainment

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  • Topic: World Wrestling Entertainment, Vince McMahon, WWE Raw
  • Pages : 7 (2608 words )
  • Download(s) : 284
  • Published : November 28, 2012
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WWE, Inc.
The WWE is not just the biggest wrestling company in the United States, but it is also the biggest in the world. The company has gone about this by spreading the WWE name and logo all over the world through international expansion. The expansion of the WWE product into overseas market was more of a necessity considering the current situation of the wrestling industry in the United States. Linda McMahon, CEO of World Wrestling Entertainment, Inc. outlined her reasoning behind the push to expand globally in a press conference held on August 23, 2004. The main reason being an increased demand for the WWE product abroad, as well as impressive attendance numbers when events were held internationally. Additionally, attendance at live events or house shows, were very low. Linda McMahon said that by providing more shows overseas to fans that normally do not have the chance to see the WWE live, they will be satisfying a need as well as covering for a declining market in the United States (wwecorporate.com 2011). Due to the increase in live events overseas, the WWE also hired more international staff members in order to handle and continue the expansion. Another aspect that helped the WWE expansion internationally is their television presence in many countries. On their corporate website, the WWE lists thirteen countries in which they have television deals. Included are the United Kingdom, Japan, France, Mexico, and others. Obviously, this is important because their push to increase live events overseas would not be successful if they did not have television deals in place. Otherwise, the people in these international markets would have no clue as to who the wrestlers are and no reason to want to pay money to see them live or purchase WWE products. The WWE also has licensing agreements with about 75 licensees worldwide. The licenses use the WWE logo and its trademarked wrestling characters on all types of products and merchandise. This licensing program has expanded internationally to include the United Kingdom, Italy, India, Japan, South Africa, and Australia. (www.wwe,inc.com) World Wrestling Entertainment, Inc. used horizontal integration in 2004 with the purchase of their rival, World Championship Wrestling. With the acquisition of World Championship Wrestling, it allowed World Wrestling Entertainment, Inc. to be the only major wrestling company in North America. WWE had monopolized the wrestling industry. With World Wrestling Entertainment, Inc. as the only big name in town, the wrestlers were in an awkward position. If the wrestlers were let go by the WWE or had a dispute with management over their contracts, their only alternatives would be to work for a much smaller company that could not match the kind of wages the WWE offered, or to find a new line of work. WWE Superstars do not have a union to represent them. The biggest asset in the acquisition of World Championship Wrestling wasn’t the company and all intellectual property that went with it; rather it was the video tape library it possessed. The WWE went on to acquire the video tape libraries of other defunct promotions like the AWA, ECW, and Jim Crockett Promotions. Collecting a majority of the wrestling video tape library in existence gave the WWE a competitive advantage. Linda McMahon has publicly said that the video library “is a leading growth project for the company”. The library of video footage allowed them to test the waters of an on demand channel featuring all of the classic material. At her press conference on August 23, 2004, Linda McMahon said that the WWE 24/7 On Demand service is being counted on to provide the company a strong source of revenue in the future .The exciting news for fans of the WWE is that they have so much footage that only a portion of what they have now has been digitalized (November 4, 2010 - World Wrestling Entertainment, Inc). .When Vince McMahon and Linda McMahon decided to buy out all other...
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