When it launched its streaming network, World Wrestling Entertainment (NYSE: WWE) lost some of its ability to make big money from limited-appearance attractions.
It used to be that a visiting celebrity or a former wrestler coming back (think Dwayne “The Rock” Johnson or “Stone Cold” Steve Austin) could spike some interest, leading to a major increase in pay-per-view (PPV) buys. Now that the WWE Network has more or less eliminated PPVs, the value of a returning star or big celeb is less clear.
If, for example, Hulk Hogan comes back, he may cause a spike in the Nielsen ratings, but it seems unlikely that many people would pay $9.99 a month to get the network to see him appear on a special (the former PPV events). That means that for big stars to actually be a business driver for the company, they have to stick around for a longer-term story — the kind of arc that casual fans might sign up to the network for so they can see how it plays out.
Enter Bill Goldberg
Recently, WWE found a star from pro wrestling’s past who can still move the needle today. It originally brought back Bill Goldberg for a series of appearances in order to build up the buzz for a match with Brock Lesnar, the company’s current top attraction.
At the time the deal was made, WWE expected Goldberg to get a big nostalgic reaction, and hoped that his appearance would lead to an increase in network signups. It was widely expected that Lesnar — who is under a long-term contract — would beat the returning star, who might get in one of his signature moves after the loss to send people home happy.
Instead, Goldberg’s return was met with very enthusiastic crowd responses, increased television ratings, and likely an increase in network subscriptions. Because of that interest, WWE did something unexpected. It quietly signed Goldberg to a longer-term deal and had him, not just beat Lesnar, but beat him convincingly.
What does this mean for business?
It’s unknown exactly how long Goldberg will be around, but he is likely going to stay through Wrestlemania, where he would have a rematch with Lesnar. He will also be appearing at perhaps the second-biggest event of the year, the Royal Rumble, which lets the company tease out the rematch.
The return of Goldberg is likely to make a measurable difference in both TV ratings (which it has already) and, ultimately, network subscriber numbers. Whether those viewers stick around after the returning star’s run is over, remains to be seen, but so far, his return to the ring has been a difference maker.
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