Update on WWE Studios

Along with fewer dollars from the TV Rights Revenue category, the poor performance of WWE Studios last year was viewed by WWE management as a top reason for WWE's annual performance "not looking good" on paper. WWE detailed how they plan to correct the issue and try to make money with the films division during the annual shareholders meeting Friday.

WWE CEO Vince McMahon identified TV Rights Revenue and the movie division as key areas to address during his opening remarks at the meeting. Studios head Michael Luisi was then given his own speaking segment to sell shareholders on why movies is still a worthwhile investment despite WWE reporting numerous losses in 2011, and following a $150 million total investment in the previous two films strategy that did not pan out.

Luisi identified a three-point Films strategy focusing on a new content strategy, a new distribution strategy, and a harder push to sell the movies to WWE's current audience and to non-WWE fans.



Part of the new content strategy is co-producing and co-financing PG-13 and R-Rated movies in the genres of Action, Crime, Horror, Sci-Fi, and Thriller. WWE will also consider movies that match up with the PG-TV product.

WWE CFO George Barrios noted WWE plans to invest $15-20 million in 4-8 projects this year. Asked why not focus on quality over quantity, McMahon replied he thinks they can do both. He said they can't do a big-budget one-off movie, but they can try to distribute the risk with production/financing partners and create more upside for successful movies.

For movies not featuring WWE stars that may be more appealing to non-WWE fans, the objective will be to either (a) produce a movie with a partner after WWE acquires it or (b) simply come alongside an already completed movie to share in revenue and cost.

Luisi said the goal will be to take a non-WWE film, brand it as a WWE Studios movie, and introduce it to the WWE audience and to a broader non-WWE audience. The implication is that even if a movie does not star a WWE wrestler, the movie will be pushed on WWE television and through WWE's other means of promoting their products.

Upcoming Schedule Announced Friday:

- Aug. 17: "The Day" release as part of 50/50 co-financing with Anchor Bay.

- 2013: "No One Lives" release that is 50/50 co-finance with Pathe.

- "Dead Man Down" began principal photography this week. WWE is doing a 50/50 co-financing split with IM Global.

- In Production: The next installment of "The Marine" begins filming in June.

- The "Leprechaun" franchise will be re-booted with Hornswoggle in the lead role as part of a 50/50 co-financing deal with Lionsgate. It will be the first of two movies partnering with Lionsgate, with an announcement on the second still to come.

source: pwtorch.com