Olivert -- Any word on recent ratings for TV poker shows?

[wins_pot]

It seems like they're getting less attention than they used to. I'd guess that ratings are down 15% or so from last year. --BA

[olivert]

Ratings for the "top two" TV poker series, NBC Heads-Up and WSOP on ESPN, are FLAT year-to-year. NBC heads-up averaged 1.4 million households, while WSOP on ESPN averages abut 1 million households per episode.

NBC created and owns NBC Heads-Up so there is no rights fee involved. NBC does have a deal with Harrah's running through 2007 that 1) allows Caesars Palace to host NBC Heads-Up, and 2) ensures that Harrah's will NOT holds a heads-up tourney under the WSOP brand.

Note that Harrah's and ESPN have reworked their TV contract so that 1) ESPN no longer pays any CASH to Harrah's in terms of a rights fee, as Harrah's and ESPN now have a revenue-sharing agreement instead, and 2) ESPN is currently NOT involved with either the 2006-2007 WSOP Circuit or any future TOC beyond the 2006 edition. The new TV contract runs through the 2010 WSOP Main Event.

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Ratings for WPT on The Travel Channel is down about another 15% or so year-to-year, to about 700,000 households on average when you add up the viewership to the 2 airings on Wednesdays at 9pm ET/PT and midnight ET/PT.

WPT TV ratings in the U.S. no longer matters as WPTE knows that WPT will NEVER get any more cash from any TV network in the U.S. as soon as The Travel Channel 1) either declines to pick up the option for 2008 and/or 2009, or 2) let the contract run out after the 2009 season.

There is no reason why any U.S. TV network should be paying WPTE $500,000 in cash per 2-hour episode when the likes of MansionPoker.NET and TiltWare (FullTiltPoker.NET) are paying over $500,000 in cash to buy 2 hours of TV time on FSN.

WPTE is repositioning itself as an online gaming company, with WPTOnline.com version 2.0 scheduled to launch in the 3rd Quarter of 2007, just in time for WPTE to take its best shot at getting into 1) the world's largest and most lucrative gambling market, and 2) a market without any online poker incumbents. That market of course is Mainland China.

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NBC Cable has killed off Bravo's Celebrity Poker Showdown (CPS). NBC tried to take a shot at the WPT by having CPS run head-to-head against the WPT, but that failed.

[wins_pot]

Thanks Olivert!

WPTE is hovering near a market cap of $85 million. The market does not see much value in the TV franchise. You think it's a decent buy based on the prospects in Asia?

So, if Travel Channel drops the WPT, WPTE will just get out of the business of TV poker and into the business of online poker?

The TOC was the first example of really big money being added to player prize pools by sponsers --- it's ashame that it didn't work out.

I have a two-part article on The Poker Economy coming out soon in Bluff. PArt 1 covers high buy-in tournaments and PArt 2 covers the online world.

Brandon

[No Fizzle]

So does the impending end of the WPT contarct mean that this is the first and last year of a televised PPT?

[Thundercat32]

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So does the impending end of the WPT contarct mean that this is the first and last year of a televised PPT?

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One can only hope

[Wetdog]

OT, Brandon, please post your opinion about Prahlad's behavior in this thread.

[olivert]

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Thanks Olivert!

WPTE is hovering near a market cap of $85 million. The market does not see much value in the TV franchise. You think it's a decent buy based on the prospects in Asia?

So, if Travel Channel drops the WPT, WPTE will just get out of the business of TV poker and into the business of online poker?


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In my opinion, WPTE is an EXTREMELY SPECULATIVE "China Play" at this point in time.

WPTE wants to use the existing video library of WPT and PPT shows (6 seasons' worth of video) in order to drive the WPTOnline.com business when WPTOnline.com Version 2.0 launches in the 3rd quarter of 2007.

By the 3rd quarter of 2007, both the U.S. and Europe will be saturated with incumbent online poker websites that WPTOnline.com's only shot, in my opinion, will be in East and Southeast Asia, where 1) no incumbent current exists, and 2) the Communist Party in Mainland China can decide which online poker site to license explicitly to operate in China, and therefore decide where all China-based players (which could ultimately account for more than 50% of all online poker players in the world), will end up playing.

The pending introduction of Texas Hold'em into China, starting with Macau as the gateway into the Mainland, will be a disruptive event that could potentially reshape the poker industry as we see it today.

You beat me to Bluff Magazine. Given my reputation in the industry (I have it on good authority that PartyPoker threatened to cut off the affiliate revenue stream of any poker media outlet that decides to accept a freelance submission from me, in retaliation to my work in the Robert Neary/NCAA case), I don't expect to be able to get paid for any poker article I write.

[Ignignokt]

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There is no reason why any U.S. TV network should be paying WPTE $500,000 in cash per 2-hour episode when the likes of MansionPoker.NET and TiltWare (FullTiltPoker.NET) are paying over $500,000 in cash to buy 2 hours of TV time on FSN.

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I've mentioned before that you don't fully understand how this works (it's a GREAT deal for an entity that can sell sponsorships), and that you're comparing apples to infomercials.

But in WPT's case, people (even the poker-playing public) has grown tired of their overly hype-filled product (poker as pro wrestling), their lack of "big name" pros (due to their restrictive publicity releases) and inability to create their own stars (most people wouldn't recognize The Grinder on the street). This will make it a hard sell whether they look for a traditional package or go in-house with ad sales and rent cable time.

The WSOP coverage is considered the "gold standard," with its more laid-back style and its focus on telling a story. My guess is that with the same ratings, Harrah's is making more money under their new deal than they made from the "cash up-front" plan last year.

I might add that the WSOP ratings are STELLAR considering ESPN is giving it next to zero promo spots, and a time slot where most west-coasters can't see the new episodes without TiVo. This kind of proves the staying power of the WSOP.

And Bravo's timing of CPS was a network bungle, pure and simple. Combined with their inability to get even the C-list stars from their first couple of seasons, it was time to knock it on the head. Dave Foley needs a kick in the ass to get him back into comedy.

[olivert]

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I've mentioned before that you don't fully understand how this works (it's a GREAT deal for an entity that can sell sponsorships), and that you're comparing apples to infomercials.

But in WPT's case, people (even the poker-playing public) has grown tired of their overly hype-filled product (poker as pro wrestling), their lack of "big name" pros (due to their restrictive publicity releases) and inability to create their own stars (most people wouldn't recognize The Grinder on the street). This will make it a hard sell whether they look for a traditional package or go in-house with ad sales and rent cable time.


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Ultimately, there are only three TV poker events in the U.S. that create "TV poker superstars" instantly, based on data in the past 4 years:

1. WSOP Main Event

2. WPT Ladies Night

3. Harrah's/ESPN TOC (on indefinite hiatus after 2006)

That's it.

Chris Moneymaker, Greg Raymer, Joe Hachem, Clonie Gowen, and even Evelyn Ng went from absolute nobodies to "TV poker superstars" overnight.

One can argue that Evelyn Ng has a higher "Q" rating than "The Grinder".

Annie Duke went from "poker pro" to "TV poker superstar" overnight by winning the 2004 TOC. She now spends at least 10 times more time inside TV studios than at the poker table.

Jennifer Tilly went from "B-list/C-list" actress to another "TV poker superstar" by winning the WSOP and WPT Ladies events in the same year.

Mike Matusow is another one whose "Q" rating went through the roof after he won the 2005 TOC.

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Isabelle Mercier parlayed her WPT Ladies Night II win into a modest sponsorship contract with PokerStars, as she mainly focused on marketing herself in France and Quebec.

It'll be interesting to see which direction J.J. Liu will go after her win in WPT Ladies Night IV, at a time where the likes of Steve Lipscomb, Johnny Chan, Stanley Ho and his daughters, MGM MIRAGE, and even Harrah's are making "plays" for the Mainland China gambling market.

[Ignignokt]

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One can argue that Evelyn Ng has a higher "Q" rating than "The Grinder" among college age single dudes who watch poker.

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I would agree with that. But that was what, 2003? 2004? I think most guys have started to lust after much more attractive, much more successful female players by now.