Toned down pro wrestling looks to hook kids

By Vidya Lakshmi - Analysis

BANGALORE (Reuters) - The macho world of World Wrestling Entertainment Inc (WWE.N) is kidding around.

The sports entertainment company, better known for staging dramatic and violent wrestling matches, is all set to woo a younger audience as it collaborates with toymaker Mattel Inc (MAT.O) and tones down the violence in its TV shows.

The company recently got a Parental Guidance (PG) rating for all of its TV shows, allowing more children to tune in and bringing in more advertising dollars.

WWE's new licensing agreement with Mattel, the largest toymaker in the world, will replace its existing toy license deal with toymaker Jakks Pacific Inc (JAKK.O) in January.

"What Mattel is going to do that Jakks Pacific never did is make a line for young kids," WWE Chief Operating Officer Donna Goldsmith said, adding that the deal will positively impact results in the second quarter of 2010.

WWE will launch a new range of products for children aged 6 and up -- including Ultimate WWE Championship belts, megaphones, action figures and replicas of masks worn by wrestlers -- as well as a line of collectible action figures aimed at their parents.

And though WWE, founded and run by the McMahon family, does not have plans for any stuffed toys for children, the company sees this as an option in the future.

"Part of (WWE's) strategy has been to try to grow their fan base down younger," Hudson Square Research analyst Marla Backer said.

"They are having in-school initiatives, they just launched a kids magazine, they are doing a number of things to generate interest among younger children."

The PG rating for the company's TV shows helps reach young fans who can then grow with the brand, analyst Backer said.

The company also recently signed blue-chip advertisers like ConAgra Foods Inc (CAG.N), PepsiCo Inc (PEP.N) and AT&T Inc (T.N).

"We have taken away some of the edginess, and as a result have signed on a number of advertisers," COO Goldsmith said.

ConAgra stopped advertising on WWE's top-rated "SmackDown" show in September 2000 after the conservative Parents Television Council, a non-profit that monitors TV content, requested the food giant to stop supporting the show due to its violent content.

SMACKING DOWN VIOLENCE

While the rating change could lose the company some of its audience who like violence on shows like "SmackDown," any loss would be offset by new fans, said Jorge Orduna, who writes the popular "Pro-Wrestling Blog."