Luke Thomas over at Bloodyelbow has provided a great summary of his conversation with Reed Harris of the WEC in which they discussed everything related to WEC 48. There are undoubtedly many concerns and angles to cover when launching a PPV business model, but it appears as though the folks at Zuffa are well-prepared.
Here are the early details:
1. The date was selected in part to nail down the Sacramento venue. With their most financially lucrative star in Urijah Faber headlining for a title in the main event, it only makes sense to ensure the crowd will be as loud, thick and MMA-savvy as possible. Sacramento has historically shown to be hugely favorable territory for the WEC.
2. According to Harris, their planning of an April 24th show did not take into account any potential Strikeforce plans to also host a Fedor Emelianenko-headlined fight in April.
3.The decision to move forward with a PPV was done by WEC brass in conjunction with UFC President Dana White and Lorenzo Fertitta. The logic, as it was explained to me, was that with two title fights and a card filled with highly-ranked, pound-for-pound greats, the card merited moving in that direction. “With five fights and two titles on the line, they feel upstairs that we are the same caliber and quality as UFC events,” said Harris.
4. As for the price point, the decision to place the cost at $44.95 “was made corporately”. Harris insists extensive research was done into PPV watching and purchasing habits. He argues the internal data they received gives them the confidence to move forward with the PPV effort, but did not elaborate beyond that. He also insisted given what the event offered, it was worth the cost of a UFC PPV.
5. Here’s a clever twist: the event will be known as “UFC Presents…WEC 48: Aldo vs. Faber”. When asked about the extent to which the UFC would use their marketing and PR muscle to assist the WEC, assurances were made that both organizations would work together to properly promote and cross promote the effort. No specific details were offered as to promotional events, branding, event signage or other items at the time of the call.
Payout Perspective:
I’ve voiced my opinion on this PPV – saying it should happen, but questioning the price point and timing of the event – but I really think the WEC is taking some solid steps towards addressing those concerns and mitigating some of that risk inherent in an initial PPV offering.
The most important step the WEC has made is to label the event as the “UFC Presents: WEC 48 – Faber vs. Aldo” because that’s going to help alleviate some of that brand equity gap that might have caused casual consumers to shy away from an unknown product at $44.95. But it cannot stop at just a label. The UFC and WEC need to build and reinforce the presentation with a host of content and promotional material that further leverages the UFC brand in order to raise the profile of the WEC.
I’d love to see some cross-promotional material done with UFC and WEC fighters, some sort of WEC Primetime show, and even more out of the UFC brass promoting the event. It’s also important for the WEC to ramp up its own PR team: to get these fighters into the media, get its officials like Harris and Dropick into the mainstream media, and pump the idea that Aldo-Faber is a must-see fight for any sports fan.
Time for the MMA community is now
The initial PPV is always tough because distribution isn’t what it should be. Many people balk at the normal UFC price of $44.95, but they’ll usually will go out to the bar or have 10 people over to their home to watch the fight in order to minimize that expense. But that’s a tougher sell for a brand and fight attraction that isn’t widely known. As a result, bar owners are more hesitant to pay the $500-$1500 fee for the PPV because there’s no guarantee they’ll get that money back in the form of good business that night. Likewise, the person that has 10 friends over for a UFC card might only be able to scrounge up 2-3 hardcores for the WEC event.
Thus, Harris is right, this is the time for MMA fans to stand up and show that they want more MMA. The most powerful marketing tool on the planet is viral (word-of-mouth) marketing, and everyone who is aware of this fight needs to spread the word. That means calling local bars and requesting that they buy and advertise the WEC card like they would any UFC event; or, they tell every single one of their sports fan friends that this fight is a must-see.
The key is to reference things that casual fans will be able to comprehend and easily understand. This fight is like Anderson Silva vs. Georges St-Pierre at 145lbs; they’re literally the best two fighters in the world at 145lbs.; or that this fight is likely to be the best scrap of the year.
Strikeforce on 24th may not be a bad thing
There seems to be some concern that Strikeforce and CBS will place their card on April 24th, but I’m not convinced that’s a bad thing: the greatest opportunities in life are borne of the largest problems.
What better way for MMA to showcase its growth and product depth than with a showdown of the two best promotions outside of the UFC? If done properly, on both sides, a savvy media battle could really generate some buzz for the sport by pitting the two promotions against one another.
It’s Kanye West vs. 50 Cent dropping their albums on the same day all over again. Both sold way more than they ever would have alone because of the competition and the rivalry that made fans stand up and choose a side. In the end, both organizations could be better off with a April 24th showdown.
I understand there’s some trepidation on both sides – nobody likes to lose – but neither organization is in this for the short haul, and competition should effectively boost demand in a sporting environment inside of the growth stage of the industry life cycle. The WEC isn’t putting this event together to make a one-time profit. This is the start of a process that will hopefully lead to a new long-term business model, the effects of which will far exceed the revenue of one event.
Something to chew on.
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