Conference Call Report - future of WWE Studios in question?

http://pwtorch.com/artman2/publish/WWE_News_3/article_58473.shtml

After a series of impairment charges and quarterly losses related to the WWE Studios division, one of the two big stories coming out of Thursday's quarterly conference call with investors was WWE management revealing they have thought about scrapping the films division in the future.

WWE CEO Vince McMahon was optimistic that the new model under the supervision of Studios head Michael Luisi will ensure the long-term viability of the division. However, McMahon and CFO George Barrios made it sound like this is the last hurrah.

"If new films strategy does not work, we will get out of films business," McMahon said. "(But) I really feel strongly that under this new guidance, this really will work."

Asked if there is a breaking point when WWE will know it's time to get out, McMahon replied, "I really think this is going to work." He added, "There is a specific time when we say, 'This is not working.' But, I don't think we'll get there."

McMahon noted most losses from the previous model have been accounted for, which means there will not be a constant series of impairment charges going forward. McMahon also stressed the strategy of spreading out expenses and risk with other production companies.

WWE is budgeting a significant amount for expenses to hold up their end of the bargain. Barrios noted WWE is budgeting $15-25 million for 2012, which allows them to "participate in" 4-8 movies. And, it will take time to evaluate the success or failure of the movies produced and distributed under the new model, as some movies may not hit theaters until 2013 or even 2014.

With WWE unable to evaluate the success/failure until next year, a question was posed whether WWE will know whether to continue in the movie business and budget money in 2013. Barrios replied that they anticipate seeing some indications by the end of this year to know whether to continue making movies under the new strategy.

Movies aren't your thing, WWE. Let it go! At least the movies aren't as big a bust as the XFL.

^ LOL..

Yeah they need to just accept that they can't make movies that are good or very profitable..

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