It seems anytime someone asks why the current product is so tame and watered down compared to the last time the business was hot (mid to late 90s) the answer given is always: "They weren't a public traded company then; they have shareholders now to whom they have to be accountable."
That is an absolutely ludicrous answer in my opinion and I graduated from college with a B.A. in Marketing. I've also been a stockbroker. Shareholders don't care whether someone's product has a PG rating or an R rating. The objective of investing in stock is to make money. So suppose you're a shareholder of WWE stock and you have a choice between two options: The first option is to choose to have the situation going on right now. The product is watered down and bland but the stock has risen some over the years. It hasn't risen dramatically, but it's making you a modest return on your investment.
The second option is they change to a more exciting, edgy product. You might possibly find some of their content to be in bad taste. However, the business is hot again and you're making twice the return on your investment that you had been making when they had gone to the PG rated "family friendly" product.
Would any shareholder prefer the first option over the second option? No. Shareholders want the best return on their investment they can get. They don't have to enjoy watching the product. Change the product to something less sanitized and more edgy and exciting than it is now and the shareholders will be perfectly happy as long as the stock starts making them more money than it has been.
That is an absolutely ludicrous answer in my opinion and I graduated from college with a B.A. in Marketing. I've also been a stockbroker. Shareholders don't care whether someone's product has a PG rating or an R rating. The objective of investing in stock is to make money. So suppose you're a shareholder of WWE stock and you have a choice between two options: The first option is to choose to have the situation going on right now. The product is watered down and bland but the stock has risen some over the years. It hasn't risen dramatically, but it's making you a modest return on your investment.
The second option is they change to a more exciting, edgy product. You might possibly find some of their content to be in bad taste. However, the business is hot again and you're making twice the return on your investment that you had been making when they had gone to the PG rated "family friendly" product.
Would any shareholder prefer the first option over the second option? No. Shareholders want the best return on their investment they can get. They don't have to enjoy watching the product. Change the product to something less sanitized and more edgy and exciting than it is now and the shareholders will be perfectly happy as long as the stock starts making them more money than it has been.