2. The History In 1980, the son of Vincent J. McMahon, Vincent K. McMahon, founded Titan Sports, Inc. and in 1982 purchased Capitol Sports from his father and associates Vince became steadily involved in his father's wrestling business until the latter was ready to retire. The elder McMahon had already established the northeastern territory as one of the most vibrant members of the NWA by recognizing that pro wrestling was more about entertainment than sport. Against his father's wishes, McMahon began an expansion process that would fundamentally change the sport.
3. WWE BRAND Passionate and Heart-Pumping Entertainment Deep emotional connection with our fans Intense brand loyalty Three Branded Television Shows & Live Event Tours
15. Organizational Threats Rising Competition In Their Area Of Entertainment Already Well Established Competition Other Forms of Athletic Competition
16. General Environment Live Event revenues were $27.2 million as compared to $20.3 million in the prior year quarter. Revenues increased 34% primarily due to higher average attendance and an increase in the number of international events. There were 94 events, including 17 international events, during the current quarter as compared to 89 events, including 12 international events, in the prior year quarter.
17. General Environment -Venue Merchandise revenues were $4.3 million as compared to $4.2 million in the - Television Rights Fees revenues were $28.3 million as compared to $24.4 million - WWE Classics On Demand™ revenues were $1.2 million as compared to $1.4 - Consumer Products - Home Video net revenues were $11.2 million as compared to $11.0 million in the - Licensing revenues were $7.9 million as compared to $10.6 million in the prior year
19. Strategic Options Expand Internationally Focus on live event productions Increase traffic on web-based market place Enhance guest appearances to increase attendence
1prior year quarter, as higher average attendance and the impact of five additionalinternational events was offset by an 11% decline in lower domestic per capitamerchandise sales to $8.71 in the current quarter.2in the prior year quarter. This increase was primarily due to fees received from ournew WWE Superstars television show and contractual increases from our existingprograms.3 million in the prior year quarter.4 Revenues from our Consumer Products businesses were $23.0 million versus $26.6million in the prior year quarter, representing a 14% decrease5 prior year quarter. The increase reflects the performance of our new releases andcatalog titles.6quarter. The decrease primarily reflects the reduction in royalties earned on thesales of toys and videogames, particularly in international markets.
Live Events & TV: Television programming and live events are WWE’s principal creative and production activities. WWE’s creative team develops compelling and complex characters and weaves them into dynamic storylines that combine physical and emotional elements. Storylines unfold on our weekly television shows and live events. The drama is played out in the wrestling ring. Stories culminate or change direction in our monthly pay-per-view events.WWE programming reaches 15.9 million people per week in the U.S. More than 2 million fans flocked to 340 WWE live events in 2006. Monday Night Raw is the most-watched regularly scheduled program on ad-supported cable, and Friday Night SmackDown has consistently been one of the top 10 English language primetime programs among Hispanic households.Pay Per View: WWE has been a pioneer in both the production and promotion of pay-per-view events, generating an average $100 million in annual revenue. In more than 20 years, WWE has generated more than $2 billion for the pay-per-view industry. WWE produces up to 16 pay-per-view events annually, and continues to be the largest provider of pay-per-view live event programming in the world. Consumer Products: WWE utilizes the Internet to promote our brands, to create a community experience among our fans, to market and distribute both our offline, online and mobile products, and sell online advertising. During 2006, the company’s primary website, WWE.com, attracted an average 15.7 million unique visitors worldwide per month, who viewed more than 46 million video streams per month. WWE.com’s new broadband network is extremely popular. Digital Media: WWE Films was established to explore options in filmed entertainment in order to promote WWE Superstars and capitalize on WWE’s intellectual property and fan-base. WWE’s third film, The Condemned, opened in theaters nationwide on April 27. VOD: WWE 24/7 On Demand delivers the best of professional wrestling – all day, every day – from the world’s largest professional wrestling video library of more than 90,000 hours of action. Fans can relive legendary matches and moments with wrestling Superstars, past and present, as well as see exclusive new programming.
