Will repackaging a WWE event increase revenues?

Would a mere name change bring in business? It's not the most exciting strategy, but I do agree with it up to a point. Changing the name of an event would be no different than what a major soda company like PepsiCo (NYSE: PEP) does every so often. When a new design is executed on a Pepsi can, the soda itself doesn't change. Yet, it grabs a consumer's attention.

The example given in the linked article is for the event called Unforgiven. That will be called Breaking Point. I see the merit. If WWE does indeed offer some fresh changes to the content to go along with the new moniker, then it might stimulate interest in the fans.

Maybe the biggest issue is with the free programming versus the premium monthly events. At the end of the day, WWE has to realize that, for a consumer to be willing to part with valuable discretionary cash, the consumer had better receive bang for the buck. If you look at WWE's free cable shows, they're pretty entertaining and fun. Yet, there's been so much debate among aficionados about whether the company should hold back a bit when booking the free content.

There has to be a balance. WWE has to pace itself better to fully leverage the net worth of a story arc. When you think about it, there's so much wrestling content every week. It's ubiquitous. WWE may require an entirely new paradigm in terms of how it develops engaging scripts to address the reality that a consumer does not necessarily have to spend a lot of money on a premium event to enjoy wrestling.

Of course, I'm sure the company is always examining how it develops ideas. No matter, though, it can't be said enough: WWE must increase those buy rates to help net sales. When you look at the high yield of the stock, you're so tempted to invest. But you then think about what a high yield means. You wonder why Wall Street hasn't stepped up and bought so many shares that the yield gets driven down to a more normal level. Perhaps Wall Street is worried about buy rates and other fundamentals. WWE is in the hot seat; it has to prove it has the goods to deliver on the promise of its brand. In theory, buying an event on a cable system should represent a unique value to fans in this economic climate. WWE will hopefully be successful in communicating such sentiment to its non-hardcore fan base.

Disclosure: I don't own any company mentioned; positions can change without notice.