Unmet Advertising Targets Lead to SmackDown’s Departure from Fox
Summary:
– Fox’s partnership with WWE is concluding due to unmet advertising expectations, leading to SmackDown’s exit in 2024.
– Despite the valuable ad space, Fox cited insufficient return on investment and need for significant retransmission revenue.
– SmackDown is set to return to the USA Network as part of a $1.4 billion deal with NBCUniversal.
WWE fans were taken aback by the news that Fox is set to part ways with WWE SmackDown in 2024. The blue brand will transition back to the USA Network, raising questions about the future of Raw and NXT.
The collaboration between Fox and WWE, which began in 2019, is drawing to a close due to the failure to meet anticipated advertising targets. The signs of a strained relationship were evident earlier this year when SmackDown was noticeably absent from a 2024 schedule promotion.
During the Q1 2024 Fox earnings conference call, Lachlan Murdoch, Fox’s CEO, shed light on the reasons behind SmackDown’s departure. He explained that while the ad space during SmackDown broadcasts was valuable, the advertising numbers needed to be aligned with the audience of WWE, leading to an unsatisfactory return on investment. Additionally, Murdoch mentioned that WWE needed to contribute more significant retransmission revenue.
As SmackDown prepares to leave Fox, it is set to rejoin the USA Network, where it was previously aired from 2016 to 2019. This shift is part of a substantial $1.4 billion deal with NBCUniversal, which also includes the introduction of quarterly primetime specials on NBC. WWE CEO Nick Khan expressed optimism for this collaboration, emphasizing NBCUniversal’s longstanding partnership with WWE.
With the USA Network continuing to host WWE NXT and WWE Monday Night Raw, the industry is keenly watching how these changes will unfold in the complex landscape of television rights deals.
