UFC discusses future of PPV
March 7, 2012
One of the more interesting issues that came up at yesterday’s UFC on Fox 3 press conference was the issue of the future of PPV and the UFC. MMA Junkie writes about Zuffa’s perspective on the issue and the possible future for the UFC.
The article addresses the changing landscape of technology and Zuffa’s current pay TV revenue model. Dana White acknowledges the evolution of the business model which may change over time. With the UFC-Fox agreement, there may be a time in the promotion where PPV revenue is not the main producer for company. The Fox deal so far has been a success and according to the article, a success with advertisers. Yet, there is a need to find other sources of revenue.
Via MMA Junkie:
…the UFC also needs other sources to feed the till, and it’s embraced other platforms to bolster revenue from TV and pay-per-view. The promotion’s online business sells fights through the UFC’s website and through online partners. It has yet to replace the revenue brought by pay-per-view. That could change, however.
We have discussed in the past the potential for Zuffa to find alternative platforms to the current PPV model through showing its events on its own web site, Facebook, YouTube, XBox Live and even through your cell phone. It also has toyed with showing events in 3D in theatres. However, none of these have yet to replace the current structure. A portion of the reason the UFC would like to see its events on other platforms is that it could mean more of a cut of the revenue directly to the company rather than share it with PPV providers. Obviously, it may have to share revenue on other platforms (e.g. XBox Live) but the partnership structure could be more advantageous for the UFC.
In catering to a younger demographic, the options are available to the UFC. It has shown to be a company as an early adapter to new technology and willing to try new things for its fan base.