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


1/9/14 8:44 PM
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xXJayRobXx
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kalt - I bet it will be revised down to 500k or less. No way it did 1.1 million buys, never mind the slightly raised price. These tentative estimates always turn out wrong.

UFC is making bad business decisions now. It's loaded with 'yes men' who won't tell dana no or offer any alternative ideas or criticize anything. "Awesome idea Dana, hell yea" is the only thing said over there. And Dana will always cite previous success as the reason why current plans will turn out profitable. Bad mistake.

Oversaturating the market with events is a horrible idea, and now they're oversaturating the talent pool as well. I hope they realize and correct their mistake before it's too late. They probably think they're "too big to fail" now but that is never the case and the worst business fallacy you can ever make.
Cause your in the meetings right? Phone Post 3.0
1/9/14 10:55 PM
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titoc123
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The 1.1 million (if true) shows that big fights will sell PPV!!

I wish Zuffa would cut down on the PPV and have all their Tv programming lead to a huge stacked PPV once every 2-3 months Phone Post 3.0
1/10/14 2:13 AM
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crsjedi1
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titoc123 - The 1.1 million (if true) shows that big fights will sell PPV!!

I wish Zuffa would cut down on the PPV and have all their Tv programming lead to a huge stacked PPV once every 2-3 months Phone Post 3.0

yes

1/10/14 6:40 AM
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ChucoV
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Rambo John J -

 

 

 
 
Ha! Phone Post 3.0
1/10/14 7:35 AM
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Standup29
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Haulport -
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...
Well technically neither can you. We don't know the ppv numbers as they are never officially released.

Avg buys per ppv in the numbers you provided are up. So not sure why your thread has the tone it does when looking at the numbers they are doing very good. Obviously they could be a whole lot better if they had more viewd on the FS1 shows but they are starting to climb. Phone Post 3.0
1/10/14 7:46 AM
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6ULDV8
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UFC FIGHT PASS IS AWESOME!

1/10/14 8:43 AM
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SevenLeggedSpider
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What is your source that UFC isn't making money with the Fox deals, or as much money with the Fox deals?

Wouldn't that be pure speculation on your part?(or anyones part for that matter)

 

I don't think anyone knows if and how much of a cut UFC gets for sponsorships run on UFC/Fox shows.

I do think however that is something to take into conisderation, which I don't think you are.

1/10/14 10:18 AM
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Blak302
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I think another thing that should be taken into consideration is the number of establishments that are now showing the PPV events - look back at the early 2000's and there were not nearly as many bars and restaurants that were hosting these events.

So although the buy-rate may suffer from this, the number of viewers I'm sure has increased over the years - the FOX deal proves this, ESPN coverage proves this, countless mainstream publications that are now running stories on a sport that they would never have thought about running before proves this...for god sake - home and fucking gardens magazine was at the 168 post fight presser....
1/10/14 10:20 AM
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dabigchet
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I think we should all be able to agree that PPV business is collapsing EXCEPT for the increase. Phone Post 3.0
1/10/14 11:52 AM
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crsjedi1
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JimmersonzGlove - 

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


this is a few days after christmas and the end of the year... o there doing so poorly....stfu toolboxes

1/10/14 12:39 PM
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TARRat
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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

#s have gone up, then gone down, and are going back up.


Doyouevenmath bro?
1/10/14 12:46 PM
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Tad Ghostal
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FETT_GayFerPayNINJA - 
Tad Ghostal - Pretty crazy that GSP brought in over 25% of all PPV buys last year (I'm sure he made 25% of the UFC's total PPV profit though, right?).

At least they'll have a good reason not to increase fighters pay now that their PPV model is collapsing.
Yess because PPV is the only way zuffa makes profit....so clearly GSP should get the same %....derp. Phone Post 3.0

I'm clearly an idiot because I have no idea what your point is. Unless you misread my post and thought that I said GSP should get 25% of the UFC's overall profit as opposed to just PPV profit?
1/10/14 12:51 PM
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Tad Ghostal
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tenchu - 
RKing85 - With Anderson and GSP not going to fight in 2014, the total number will decline this year I think it's safe to say. Phone Post 3.0

Likely.

Their 4 fights made up over 50% of all PPV buys in 2013. Jones vs Gus 2 should be a big fight (if it happens) but I'd be surprised if they don't see a big drop in numbers next year.
1/10/14 12:52 PM
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json123
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Not an expert and won't pretend to be but I think the UFC will be alright as long as they properly promote and stack ppv cards with fights the fans want to see.
1/10/14 12:53 PM
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Tad Ghostal
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*over the next year.
1/10/14 12:56 PM
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YouCantHandleMyRiddum
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It's funny that Ronda is already fighting at UFC 170. Milking the new cash cow I see.

1/10/14 1:17 PM
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goldenboyart
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Rambo John J - 

 

 

 

WTF............................hahaha
1/10/14 2:19 PM
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Mike_in_CA
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Keyboard accountants....... Phone Post 3.0
1/10/14 7:02 PM
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LDX
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With the new TV deals, ppv numbers do not cause as much concern.
if the average price for a ppv is 53 (since most people buy HD)
6,150,000 ppvs * 53 = 325,950,000
since the distributor takes about half, you are left with 163,000,000

the fox and globo deals alone are a total of 160 million (100 fox and 60 globo)
then you add to that deals in strong markets such as canada, england, australia, deals with big companies such as televisa in mexico, and the rest of the world.

the ufc will not live or die by ppv numbers. their international expansion is the thing to look at. their deal with globo was for 3 million just 3 years ago and now it is for 60. if the ufc can strongly push their brand in a few markets in europe/asia and get big tv deals out of them, they could do without ppvs.
1/10/14 7:17 PM
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RyannVonDoom
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tttt

1/10/14 7:19 PM
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musu123
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CrazyPope - 1.1 million's a lot more than I thought it'd do

really ? i think Ronda is huge in a mainstream level, and AS vs Weidamn would obviously buy the hardcores, this number were exactly what i expected
1/10/14 7:24 PM
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musu123
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its not because im a Diaz fan but the UFC should offer him tons of money to fight, he might be the biggest PPV draw they have, was 158 a card full of stars like 168? no and they cracked esealy 1mil
1/10/14 7:31 PM
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xXJayRobXx
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YouCantHandleMyRiddum -

It's funny that Ronda is already fighting at UFC 170. Milking the new cash cow I see.

She just sat out for months because of tuf Phone Post 3.0
1/10/14 7:35 PM
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FETT_GayFerPayNINJA
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musu123 - its not because im a Diaz fan but the UFC should offer him tons of money to fight, he might be the biggest PPV draw they have, was 158 a card full of stars like 168? no and they cracked esealy 1mil
That had nothing to do with GSP and his hatred shown towards an opponent for the first time since BJ.... Phone Post 3.0
1/10/14 7:56 PM
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clown makeup
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The OP does indeed present interesting food for thought; consider

1. At the very end of 2013 20 years + of the UFC, in order to garner 1 million views requires 2 x's novelty title fights in one single card.

2. The last 1 million veiws was 1 x serious title fight. GSP vs. Diaz

3. GSP vs. Hendicks garnered all of 500,000 or so views.

Therefore the money ticket is indeed Diaz.

4. Other 1 million views was other novelty fight. Brock Lesnar.

So if we graph that out, it really does seem that the UFC is struggling, in the midst of their hight of popularity at the end of the year at the end of their 20 year tenure, the very best they can do is 1 million views if they put on 2 novelty title fights. This in the most obvious way show decline not growth. That and a very very serious lack of star power. Real fans and serious fans tuned in for Diaz since he is a real serious fighter.

The novelty part II, or part II rematches  combined with the novelty of young women engaging in combat sports @ the end of 2013 = 1 x serious fight with serious fighters seriously looking to fight.

This is tantamount to a circus show, perhaps even a cirque du soleil, where the next big thing hand better be more entertaining that the one before. The road to novelty that the UFC has taken is riddle with speed bumps and pot holes.

Want 1 millon views? Put on a real fight with real fighters really looking to fight. Cant do that? Put on an entertainment show with a combination of novelty re-matches, woman, and toss in  maybe 1 armed midget bandits all on one card to generate that all elusive 1 million views.

This is the road we are travelling on :-(


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