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UnderGround Forums >> UFC To Start Online Network In 2014


11/30/13 6:36 PM
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MMALOGIC
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zackthewop - 
MMALOGIC -
Warriormmd - Sounds awesome. Now if only somehow I could see fox sport 2 with Comcast... Phone Post 3.0

I dont know for sure but I believe you'll be able to get the FS2 fights on this online network.. if not live an immediate replay.

There's also a possibility you'll get all the ppv events as well... if not now in the future, either included in a premium monthly price point or ala cart for an additional cost.

once everyone is consuming live action content over the internet through their TV (estimated to be within the next 10 years),  cable tv packages and satelite services will go away just like paper newspapers.  That means most of that 50% of the ppv revenue that goes to the cable and satelite distributors will dissapear from the supply chain and it will be closer to 10 to 15%.  That means a ppv price of around 29.95 in todays dollars.

The question is will zuffa be able to command more total revenue at 14.95 a month inlcuding the ppv events or a lower monthly cost of say 9.95 plus a 29.95 cost per ppv.... or a monthly cost of 24.95 to 29.95 including everything, or etc...  There's also ad revenue to consider which means more users more ad revenue.

at 14.95 a month you'd need a target of around 2 million subscribers to replace ppv/tv revenue.  400k (the current average ppv buy rate) is more of a likely target for a subscriber base in the short term and most of those people dont consume internet content through their television so it will be alot less than 400k initially.

The problem is at the moment you cant include ppv content without charging a minimum of 49.95/mo because the cable and satelite operators will go crazy.      

Lol you think the consumer will see drop in price of ppvs? It's more likely the ufc will keep the same price and make a larger profit. It's not like it's cheaper to order a ufc off their website. Phone Post 3.0

it's not cheaper on the website now because the cable and satelite companies would throw a huge fit over it.  Zuffa cant price it below the cable and satelite companies as long as they're the top distributors. 

DOes that mean the price will have to go down once they are not?  no... but the price almost always goes down when the supply chain becomes more effecient.  The same way music, digital books have dropped in price... news is now free compared to paying 25 cents for a newspaper, renting movies dropped when netflix streamlined the supply chain and continues to drop, digital books are dropping from hardcover, etc...

if everyone is consuming internet content from their television that means more people will stream so you have to drop the price or maybe even do away with it and include it with a subscription package to curtail the piracy.

in 10 years nobody is going to want to pa 50 dollars for a ppv... at 29.95 alot will buy and at a subscription rate with more content (value) even more will buy.

It's also about mazimizing users because you can sell ads.  Ad revenue could be as high as a quarter or even a 1/3rd of the subscription revenue if you can get enough users.

if you take the peak ppv year and the peak tv rights deal in the US and a potential increase in US fight nights, it means the US market is worth roughly 300m to 400m a year for zuffa in todays dollars.  the question is what's the best and most sustainable way to achieve that.

you need a subscriber fee either paid by the user or by the service provider (google, netflix, etc...).  Google will be rolling out a super speed internet service... if you can get 20 cents per subscriber from google that does it. if it's by user then you'd have to go 14.95 or higher and try to get to 2 million subscribers... or less subscribers and price the ppv's seperately.

a million ppv buys is the high water mark for the UFC.... so would 29.95 a month with a target of a million subscribers be better? or will fox buy out Zuffa's digital rights and include the content in their own digital strategy...

This all has to be worked out.

11/30/13 7:02 PM
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Lynchman
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JerodR - I will always try to keep up with the UFC and other MMA organizations, however the UFC is going to get too rich for my blood. $800-$1000 or more a year in PPV's is already a bit too much.

$1000?

They usually run 13 PPVs. HD is $55. That is $715.
11/30/13 8:23 PM
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JeffersonDArcyChoke
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Lynchman -
JerodR - I will always try to keep up with the UFC and other MMA organizations, however the UFC is going to get too rich for my blood. $800-$1000 or more a year in PPV's is already a bit too much.

$1000?

They usually run 13 PPVs. HD is $55. That is $715.
Ummm.

Pizza and wings?

That's what takes you to. 1000 bucks. Phone Post 3.0

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