10 Step Investigation: Just How Successful Is WWE In 2017?
6. House Show Business
The last available quarterly financial report - i.e., one of few things the company cannot manipulate for its own ends, even if they maintain the 'Mania 32 attendance illusion on it - confirmed that Live Event revenue increased 17% percent throughout 2016. The company made $38.6M on the house show circuit, which is damn impressive considering how much the industry has changed.
The house show circuit used to be the place you'd go to see the real stars perform, having seen just a tantalising glimpse on television. Now, the talent is ubiquitous - so much so that main event level matches are frequently and casually given away for free. That number was offset by a number that, viewed in isolation, may be more troubling. Average attendance has dwindled to 5,300 - more or a less half of the number the WWF averaged during the white-hot Attitude Era, during which high five figure crowds were the norm.
WWE has compensated for that reduction by inflating both ticket prices and the number of shows promoted; again, WWE by this metric is far less popular at its mainstream peak, but more lucrative. Essentially, contrary to those diehard fans who claim that the company has continuously failed to present a product aligned with their expectations, the company's modern strategy is to do precisely that. Live Events have been amplified in alignment with it, as outlined by Barrios:
"It’s about super serving our most passionate fans, and one of the things we have learned is they will consume just about everything we throw at them,” he remarked earlier this year.
WWE has embraced the shrinking world. The Live Event strategy has been successful because they know their audience not to be particularly discerning.