Financial Community Expecting 3 Hours Of Smackdown
WWE is preparing moving Smackdown Live to Fox beginning 10/4, with their first broadcast emanating from the Staples Center in Los Angeles, CA.
In preparing of the move, the company continues to explore revenue streams pertaining to television deals.
WWE Management met with Wall Street Analyst Currey Baker this week to discuss television deals that are not currently affecting stock prices.
Following the meeting, Baker is convinced there are additional stock catalysts for WWE’s international content deals in India, Latin America, the Middle East, and China.
In a report published by Bezinga, Baker stated WWE should add a third hour of taping at Smackdown, which could provide an additional $75 million in OIBDA.
Curry said WWE should improve its monetization of the third hour of taping at “SmackDown” live events. He said adding a third hour to the weekly “SmackDown” show on FOX could add an additional $75 million in OIBDA.
Dave Meltzer spoke on the situation on today’s edition of Wrestling Observer Radio, and stated the WWE could do add an additional hour of Smackdown on FS1 from 10 – 11 p.m., following a live broadcast on FOX from 8-10 p.m.
The reason behind having the third hour on FS1, is due to that network losing UFC, and FOX having content already in place from 10-11 p.m.
Meltzer adds the financial community is now expecting this additional hour, due to the additional revenue that will strengthen the valuation of the stock.
Meltzer also stated that 205 Live is currently not working, and it’s a “waste of air”. If WWE decides to move forward with a third hour of Smackdown, it’s not clear that they will do with 205 Live.
In the past the company has taped episodes prior to Smackdown, but the duration of the taping still remained 3 hours.
As of right now, no concrete plans are in place to add this additional hour, but based on Wall Street Analyst Currey Baker’s recommendations, the financial community will be keeping a close eye on the situation.