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UnderGround Forums >> The COLLAPSE of the UFC's PPV Model


1/9/14 12:06 PM
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Haulport
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With the revelation by Dave Meltzer that UFC 168 did 1.1 million buys (if this is accurate) it signals another poor year for the UFC in total PPV buys where they were still not able to even reach their 2008 total. One slight positive is that they were able to stop the free-fall that started after they peaked in 2010, where they saw two consecutive years of decline (28% and 10% y/y losses). Early year projections by Zuffa employees that they would reach and/or beat the 2011 numbers have fallen short which must have resulted in some disappointment for the company.

Total Avg Per Event # of Events
2006 5,270,000 527,000 10
2007 4,948,000 412,333 12
2008 6,325,000 527,083 12
2009 8,020,000 616,923 13
2010 8,980,000 561,250 16
2011 6,485,000 405,313 16
2012 5,835,000 448,846 13
2013 6,150,000 473,077 13
1/9/14 12:06 PM
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Haulport
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Edited: 02/22/14 2:27 PM
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These numbers are particularly worrisome considering that while the UFC seems to have peaked from 2008-2010 they have received more marketing and widespread, mainstream attention in the past three years with the FOX deal then the company has ever seen before which have not translated into PPV buys. As a matter of fact, more than likely if the UFC had stayed on SPIKE this drop in PPVs would have been significantly worse.

Zuffa has attempted to cover this PPV gap with their expansion into Brazil and worldwide and the difference between the FOX deal and the SPIKE deal but, at best, that is a wash which means no growth for the UFC since 2010 and a possible contraction regardless of the mainstream push. Add the losses of Brock Lesnar, GSP and now Anderson Silva and the PPV prospects for the future look extremely dim.




And a big thanks to MMApayout.com for the PPV numbers.

1/9/14 12:13 PM
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CrazyPope
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1.1 million's a lot more than I thought it'd do
1/9/14 12:17 PM
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teamquestnorth
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Looks to me luke ppv numbers have increased the last 2 years. Along with the tv deals the UFC has going in with fox and other networks worldwide, they must be really doing good.

Thanks for the info OP. Its great to see the UFC being so succesful. Phone Post 3.0
1/9/14 12:17 PM
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zebers3
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At the end of the day, they did better than last year, and that's after moving to 10 different channels and platforms for showing the fights. Despite losing so many viewers in the confusion of everything, they still managed to sell more PPV's than last year. So they did something right.

And once people get used to UFC being on Fox Sports 1, 2, Fox, and Fight Pass, I think things will increase a bit more. Or maybe stay the same, but either way, things have improved despite everyone saying otherwise.

1/9/14 12:17 PM
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RicGillespie
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2013's numbers better then 2012's or 11's and people are saying it it collapsing? Seems like it's starting to rebound from the switch from moving off of Spike to FS1.
1/9/14 12:18 PM
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JimmersonzGlove
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1.1 million is worrisome? That's awesome that they were able to pop a number that big.

1/9/14 12:19 PM
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kungfugrip
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is it safe to say the ufc is making more money now then they did 5 years ago in non-ppv items?

The tv deal must bring in lots of money. All of these events bring in lots of gate money also. Add to this, the expansion overseas and other countries around the world.

The number of huge ppv events are less, but I'm guessing the bottom dollar is much higher

Finally, I dont see the ufc cutting corners or taking cheat ways to keep things going.
1/9/14 12:27 PM
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Haulport
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RicGillespie - 2013's numbers better then 2012's or 11's and people are saying it it collapsing? Seems like it's starting to rebound from the switch from moving off of Spike to FS1.

No. 2013 edged out 2012 but were 5% lower than 2012 which were 24% lower than the avg of 2009-2010.
1/9/14 12:36 PM
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Haulport
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JimmersonzGlove - 

1.1 million is worrisome? That's awesome that they were able to pop a number that big.


It is extremely worrisome in the big picture. I was surprised at the number (I predicted 950k) but we'll see if 1.1mm is actually true. It would not shock me that it is inflated...
1/9/14 12:36 PM
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RicGillespie
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Haulport - 
RicGillespie - 2013's numbers better then 2012's or 11's and people are saying it it collapsing? Seems like it's starting to rebound from the switch from moving off of Spike to FS1.

No. 2013 edged out 2012 but were 5% lower than 2012 which were 24% lower than the avg of 2009-2010.

There were 3 less ppv events. Average buyers per event increased. Try to spin it as a negative all you want but it is an increase with the money they get from the Fox shows.
1/9/14 12:37 PM
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Haulport
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Rambo John J - 

 

 

 

I'm not sure what that means but I love that gif
1/9/14 12:39 PM
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Steve4192
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It looks to me like they bottomed out in 2011 and are slowly working their way back up. Their buys/PPV have gone up from 405K in 2011 to 449K in 2012 to 473K in 2013. Call me crazy, but that looks like anything but a collapse.

Let's be honest. The whole Brock Lesnar phenomenon was an outlier and had very little to do with the UFC's marketing. Brock entered the company as a fully-formed PPV draw. If you take out Brock's PPV sales from 2008-2010, that peak would look very similar to the current PPV environment. The wouldn't be any talk of 'collapse'.
1/9/14 12:42 PM
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MMALOGIC
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kungfugrip - is it safe to say the ufc is making more money now then they did 5 years ago in non-ppv items?

The tv deal must bring in lots of money. All of these events bring in lots of gate money also. Add to this, the expansion overseas and other countries around the world.

The number of huge ppv events are less, but I'm guessing the bottom dollar is much higher

Finally, I dont see the ufc cutting corners or taking cheat ways to keep things going.

Zuffa has record total revenues in 2013.

1/9/14 12:43 PM
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zebers3
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Rambo John J - 

 

 

 
 

Holy shit lol

1/9/14 12:46 PM
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Steve4192
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Edited: 01/09/14 12:52 PM
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"Zuffa has attempted to cover this PPV gap with their expansion into Brazil and worldwide and the difference between the FOX deal and the SPIKE deal but, at best, that is a wash "

Wat?

The move from Spike to FOX alone accounts for $65MM increase in broadcast revenue. That alone is worth two-million PPV buys. Their Globo deal in Brazil is worth another $60MM. That's another two-million PPV buys. Those two deals combined more than cover any drop in PPV sales from their 2010 peak, and that doesn't even take into account any of their other new broadcast deals.
1/9/14 12:49 PM
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FETT_GayFerPayNINJA
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1/9/14 12:51 PM
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FETT_GayFerPayNINJA
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How many FREE (cable or network TV) fights did we get as fans back in 2009-2010? 

 

As FANS of MMA isn't that something we should care about more than the profits of a company? 

1/9/14 12:56 PM
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Haulport
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MMALOGIC - 
kungfugrip - is it safe to say the ufc is making more money now then they did 5 years ago in non-ppv items?

The tv deal must bring in lots of money. All of these events bring in lots of gate money also. Add to this, the expansion overseas and other countries around the world.

The number of huge ppv events are less, but I'm guessing the bottom dollar is much higher

Finally, I dont see the ufc cutting corners or taking cheat ways to keep things going.

Zuffa has record total revenues in 2013.


Since Zuffa is a private company and all their deals are nothing more than PR releases you CONVENIENTLY can't prove what you are saying so please be quiet...
1/9/14 12:59 PM
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Chris27
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FETT_GayFerPayNINJA - 


Dont spoil this for Haulport, he has been sitting by his basement day and night clicking refresh to see the PPV numbers so he could make this thread.  He hold us all how much he couldnt wait to make this thread.

Dont ruin this for him. 

1/9/14 1:00 PM
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FETT_GayFerPayNINJA
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Showing an increase year over year = COLAPSE!!!!

Mind bottling Phone Post 3.0
1/9/14 1:00 PM
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klabo
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Haulport - With the revelation by Dave Meltzer that UFC 168 did 1.1 million buys (if this is accurate) it signals another poor year for the UFC in total PPV buys where they were still not able to even reach their 2008 total. One slight positive is that they were able to stop the free-fall that started after they peaked in 2010, where they saw two consecutive years of decline (28% and 10% y/y losses). Early year projections by Zuffa employees that they would reach and/or beat the 2011 numbers have fallen short which must have resulted in some disappointment for the company.

Total Avg Per Event # of Events
2006 5,270,000 527,000 10
2007 4,948,000 412,333 12
2008 6,325,000 527,083 12
2009 8,020,000 616,923 13
2010 8,980,000 561,250 16
2011 6,485,000 405,313 16
2012 5,835,000 448,846 13
2013 6,150,000 473,077 13
Get a refund from the UG school of business... You don't know shit and neither does anyone else not names Dana, Fertitta or Joe. Phone Post 3.0
1/9/14 1:01 PM
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Haulport
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FETT_GayFerPayNINJA - Showing an increase year over year = COLAPSE!!!!

Mind bottling Phone Post 3.0

Did you ever answer what your age was on that other thread?
1/9/14 1:02 PM
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Haulport
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Steve4192 - "Zuffa has attempted to cover this PPV gap with their expansion into Brazil and worldwide and the difference between the FOX deal and the SPIKE deal but, at best, that is a wash "

Wat?

The move from Spike to FOX alone accounts for $65MM increase in broadcast revenue. That alone is worth two-million PPV buys. Their Globo deal in Brazil is worth another $60MM. That's another two-million PPV buys. Those two deals combined more than cover any drop in PPV sales from their 2010 peak, and that doesn't even take into account any of their other new broadcast deals.

What is the title of this thread? it is not the COLLAPSE of Zuffa it is the COLLAPSE of the UFC's PPV model......
1/9/14 1:03 PM
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Haulport
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Chris27 - 
FETT_GayFerPayNINJA - 


Dont spoil this for Haulport, he has been sitting by his basement day and night clicking refresh to see the PPV numbers so he could make this thread.  He hold us all how much he couldnt wait to make this thread.

Dont ruin this for him. 


MMALOGIC, Chris27 and LnPNinja all in ths same thread quoting each other...

Like a fly trap : )

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