Launching a cable channel isn't any sort of panacea for growth, though, since there will be challenges along the way. One concern I have is if there's enough of an audience beyond the hardcore viewer to justify a channel. I'm not saying this point should stand in the way of an upstart network; far from it. I've argued in the past that WWE should construct new programming platforms for itself. I would say, however, that nothing should be taken for granted. WWE should not assume that casual viewers will automatically point their eyeballs the company's way. It will take a lot of marketing prowess to get things running.

What McMahon should avoid is the temptation to produce new content on a new platform. This would be tough advice to take, I concede. It's very, very difficult for any cable channel to grow over time if it relies solely on catalog titles. But the Los Angeles Times ran a quote by McMahon stating his intention of not interfering with current WWE shows like Raw, which runs on General Electric's (NYSE: GE) USA asset. The focus should therefore probably remain on running old product. Let's face it, though: if McMahon does succeed with launching this initiative, and it gains strength, then eventually all of WWE's programming will probably migrate over to it.

Shares of WWE are still trading at an impressive yield. Management will have to find different avenues of distribution for its content to keep the synergy levels going (i.e., viewers watch the content, buy tickets to the live shows, purchase the merchandise, order up the pay-per-views, and so on). Justifying that yield will take some work. WWE might be a stock to look at on a pullback. Right now it could be overbought.

Disclosure: I own GE; positions can change without notice.