The issue of piracy in MMA has been brought to the forefront by Lorenzo Fertitta in recent weeks as he and the UFC attempt to crackdown on various forms of illegal copying and redistribution of UFC events. It makes a lot of sense not just to talk about piracy and bemoan the fact that it exists, but to delve deeper into the issue in search of ways to combat piracy.
Here are some of the ways that MMA can fight piracy:
1.) Bring lawsuits upon offending pirates in the hopes of intimidating any would-be infringing parties from stealing MMA content.
This method has proven to be highly inefficient in both the music and film industries. It turns out that most people have an “it won’t happen to me” or “I won’t get caught” attitude regarding piracy, and thus continue to do so regardless of the number of people sued, fined, or imprisoned for their illegal behavior. Moreover, it’s time consuming and costly to pursue every mom and pop bar or restaurant that illegally distributes a UFC event (likewise, every stream site with a $75 setup that can broadcast to 1000 people from a basement in Siberia).
2.) Band together with the rest of the sports and entertainment community to lobby for tougher piracy laws in Washington.
Washington is a tough place to play. It’s necessary to form coalitions not just to increase lobbying leverage, but also to share the immense cost of operating in that environment.
What could some potential anti-piracy laws look like? There’s a very controversial “three strikes” law being bandied about in France that would cut a user off from the internet if he or she committed three acts of detected piracy. Others have proposed legislation which requires ISPs to divulge personal account information of suspected pirates to respective watchdog groups like the RIAA. Both plans, however, have been met with a great deal of opposition from rights and privacy activists.
3.) Enlist the help of the MMA community.
Perhaps one the most powerful and feasible solutions to cutting down piracy is engaging in a community campaign to stop piracy. MMA has some of the most dedicated and die hard fans in sports, and they could be used as a tool to report pirate activity at local bars and pubs or on the internet with live streaming sights. The UFC has already had some success with a similar model as the Boston Herald reports.
However, this plan would also depend on an efficient reporting structure whereby accusations could be submitted via websites like UFC.com and handed over to government authorities that have the ability to shut these sites down instantly. If it gets bogged down by a host of red tape and bureaucratic posturing it won’t work. The only way to beat some of these streaming sites – the kind where two pop up for every one that is taken down – is to become just as quick to mobilize as they are.
4.) Seek to disincentivize piracy through providing alternative means of product viewing.
Ideas have popped up on within MMAPayout.com’s comments section and other websites about using an Netflix or iTunes type approach to fight viewing that would provide an easy, cheap alternative to simply viewing the fights online. It wouldn’t combat PPV stealing, but it would provide another source of revenue for the organization and stem some of these fight sites that usually have individuals up as early as 3-4 hours after the fight.
The UFC has its vault system which charges per fight and is still pretty clunky. It may be in their best interest to partner with an established entity like Netflix to disseminate new content. That, or totally revamp the vault by making it easier to use and offering a monthly subscription fee.
The key to providing alternative means of product viewing is that you give users a reasonable option to pay for the content that they might otherwise steal. Lure them in with demos and one free fight feature per week so that they can see how it works, how easy it is, and how they’re getting value or benefits for their purchase. It also doesn’t hurt to explain how paying for the product goes to help support the sport and the fighters that fans truly care about.
Payout Perspective:
Truth be told, the notion that there’s one cure-all solution to piracy is false. The internet knows no bounds and is far too vast an entity to regulate or control absolutely. Any approach that MMA takes in fighting piracy must be comprehensive and utilize multiple points of attack that include pursuing infringing parties, lobbying for tougher legislation, and disincentivizing piracy through alternative product offerings
However, companies like the UFC have to realize that piracy is a cost of doing business these days. Acting within reasonable limits to minimize piracy should be the organization’s goal, because a truly dogged pursuit of internet pirates is only going to end with the company losing a lot of money and taking its eye off the ball when it comes to expanding its brand.
Lorenzo has talked about the impact of piracy on the industry – lost jobs, stifled expansion, etc. – but like anything else there’s a fine line to walk whereby pursuing piracy too much will eventually produce diminishing and even negative returns. In other words, there’s a point where all this money, time, and effort could be put to better use.
The other thing to consider in this matter, as was mentioned in a previous piece, is that the sports, music, and film industries often fail to entertain the other side of piracy. These groups simultaneously over-estimate the impact of piracy on their business while discounting the promotional value of this content. Only a small percentage of those that pirate material would still purchase the product if a pirated version were not available. But, many of those that engage in piracy – children especially – use it as a means to try a product before they escalate their commitment to purchase.
Sorry if this ends up sounding like a huge rant:
One thing that could possibly work for some curtailing piracy, but also possibly increasing viewership and revenue would be an annual subscription to the UFC events.
Zuffa would need to figure out what the loses would end up being from losing the few hardcore fans that buy every event in comparison to the money gained from people who would be getting the subscription based on the value of the package but otherwise would only buy a few events per year.
Not only that but you’re locking people into YOUR brand–the UFC. Does Strikeforce have a better event for free on CBS coming out this month? Well that wouldn’t matter to Zuffa because you’ve already paid your subscription fee and they’ve gotten enough from you for the year.
It would also increase the exposure of casual fans to the events because Buddy has a UFC party every month, not just every couple of events when there is a good card with big names on it.
You’ve also got consistent exposure to your up and coming stars. Some of these fighters remain unknown because they might not end up on the biggest cards of the year that will get the most viewings. This ensures you’ve got people paying attention to your new talent from the moment these fighters are off the undercard.
Your sponsors will also know that no matter what the event they will be guaranteed a certain number of viewers, which can increase the UFC’s leveraging potential when working out deals for cards which may not be as popular. UFC 108 would be a great example of how this could be beneficial: constant fall throughs in the match ups and a main event without much drawing power–however it ended up being a great event and one that would likely secure more interest from a casual fan, IF they can see it.
They could even tie the WEC into the subscription package as another tier once the PPV model is more established for that organization.
In the end the UFC has to realize that there alot of people that are fans of MMA, but just don’t have the means to buy every event. If Dana White is truly honest in his aspirations to make MMA the biggest sport in the world, he needs to be honest with himself and realize that very few people will pay $600-900 (12 PPV * $50 for the low, 14 PPV * $65 for the high average) a year to follow their sport on TV. Fans need more options. MMA is more exciting than baseball, but a live event has an excitment all its own. I’m not much of a fan of other sports, but I know other people would start looking at season tickets for one thing or another once you get to that price range.
Zuffa could offer online subscriptions for $300 a year and you would get a login to watch every event in high resolution–something the piracy scene can provide for free a few hours after an event. Is there anybody reading this website that WOULDN’T want that for Christmas?
A properly promoted event should have production costs covered by the gate, and once a digital product has been created its dirt cheap to distribute online. What does the cable company take for a cut out of the PPV revenue’s in comparison to the loses by piracy? This system could replace the lost profits of piracy without going out on a Napster rampage like Metallica against the very fans they’re trying to create and secure. Instead trim the 50% (sorry if this is inaccurate, it’s what I’ve read) of their PPV revenue that goes the cable guy.
I think the solution has to be less about demonizing fans who watch illegally because they love the sport and more about providing them a better and more reasonable outlet to stay current with the UFC legitimately if this sport is ever to reach the potential which we’re told about.
Just out of curiosity what does the NFL Sunday Ticket subscription cost for every NFL game?
MMA season ticket. Not a bad idea. It does present some possible problem. Indiviaual events would mean less and less. So the UFC (with most viewers already buys season ticket are locked in) may choose to take some events off very poor fights and production. As of now the buy rates would fluxuate greatly if the UFC tried to get by cheap.
But a season ticket is probably something better suited down the raod for a steady fanbase, not one raoidly growning like MMA. At this point the UFC has no idea how many PPV buys they will get next year. So a season ticket could cost them much more than expected. That will be the case until MMA popularity levels out.
Good points, I think I will definitely subscribe!🙂. I’ll go and read some more!
I think another way to decrease piracy is to have differentiated pricing. I, myself, have no problem chipping in $5 every time there’s a PPV. But, unfortunately, I don’t have 10 local friends who are interested in UFC. And I don’t always have the time to watch it live.
Right now, every time you want to watch a UFC, it’s $45+. It doesn’t matter if it’s on a tiny iphone screen, TV or computer.
What I’d like to see is watching a UFC that’s over a week old drop to under $4. (Same as renting a movie online)
JJ- great points. The UFC needs to realize that we are in an economic recession. Many fans just don’t have the nearly $50 PPV event fee. One pet peeve of mine is that the price to watch a recent PPV event remains at the $50 level, after event results, clips, etc. are already publicized (at least on my cable system). Suing individuals for piracy just won’t achieve the results that the UFC or the fans seek -a thriving sport. I would embrace some subscription based– or season ticket pricing scenario.
“Just out of curiosity what does the NFL Sunday Ticket subscription cost for every NFL game?”
$139-$169 i beleive. BUt that is way unrealistic. A UFC season ticket would be like $499. THe UFC is running like 20 PPVs a year now. Also NFL is charging you for games they normally wouldnt get anything for. Most games are shown locally. So anyone who buys season ticket on Direct TV is looking for games they cant get locally. So whatever they get is extra. The UFC would go out of business real fast giving 20 PPVs for the price of 3 PPVs.
I have a “friend” who has never purchased a UFC product or PPV show – everything bootleg or pirated but spent $450.00 for a ticket to 110 plus the $90.00 to join UFC Fight Club.
The pirates are unpaid marketing agents for Zuffa. The internet in all its evil & good has built the beast the UFC is. My heart aches for Dana and his 2 bosses as they wipe the tears off their Lamborghinis, Porches, Ferrarris, Bentlys & you get what I mean- as my “friend” parks his Camry or pick-up.
The beauty of the internet is the power it gives the 22 year old Ukranian kid in his underwear in a basement somewhere in Odessa.
What is it with degenerates making the UFC out to be the bad guy for creating something most people dont care to pay. Just because you are to cheap and have no problems being a thief dont make what Dana and Zuffa are doing a bad thing. Im not saying i have never used pirated material. But i never acted like i was owed anything by the creator. If not for the money that Zuffa makes there would be nothing for you to steal. Now grow up. Apparently the price the UFC charges is fair because millions of people are willingly paying for it. If you want to justify your actions by all means go ahead. But you look foolish making someone else out to be the bad guy.
When the UFC was 40 million in the red i didnt see you forking over any money. Zuffa stuck with the sport because they cared about it obviously more than you do. Therefore deserved to reap the benifits of their hard work, investments, time, and passion.
The UFC has only been profitable for like 3 years and scumbags want to tear them down.
Brain Smasher you hit the nail on the head.
To some of the other comments rememeber the price of the PPV to watch online is the same as TV because of the contract with the PPV provider. How long they hold that price control I’m not sure. Would be nice if they worked a deal out that they could rebroadcast on the internet like three hours following the event at a very inexpensive rate (ie: $15). But truth be told I’m not sure people would really jump much on that bandwagon much. Unfortunately as long as people can get it for free they will take advantage of it.
Won’t hurt if they could create a yearly package. But with the amount of events at this stage they’d lose money over there current way of doing business.
Like the article says…..it should be looked at as a part of doing business.
P.S.: I always wonder how long the UFC’s current business model (huge chunk of revenue is from PPV) can be sustained at a high rate?
It would be nice if the UFC could offer a cheap streaming broadcast. BUt like said above who knows what kind of problems you run into under cutting the PPV provider. Im sure they wont like it come negotiation time for a deal. There maybe already a agreement not to sell it cheaper that the UFC is bound to.
As far as how much the UFC is dependant on PPV. I believe its was mentioned by the UFC in the past to be over 75%. Since then there have been many other revenue sources created. But i bet it is still well over 50% of their revenue. Wether they can sustain with it being high. It all comes down to circiumstances. As long as things are going good there is no problem with it. BUt being dependant on PPVs leaves them living on the edge a little. Lucky for the UFC they were not effected by the economy. If PPV sales dropped like everything else in the “resession”, Stocks, car sales, realestate, etc. Then the UFC would have been in very big trouble. Because they are so dependant on PPVs.
Pride is a pretty good example of putting all your eggs in one basket. They never tried to grow outside Japan. They were dependant on their Network TV deal to survive. After they lost it and were black balled by other networks. They couldnt afford to run the same quality show they were used to. They couldnt survive and had no where else to go and nothing left but to sell out. The UFC could last forever like they are but there is always risk in being to dependant on one revenue source.
Stealing is stealing and honestly people are either willing to pay for something or they are not. If the UFC lowered the price for some pay per views it wouldnt do anything but lessen the profit for those particular pay per views. There’s a certain segment of the population that will not pay for something if they can figure out a way to steal it. Those people MAY buy a pay per view or two a year if they are totally overcome by wanting to see the fights and can talk people into chipping in. But most of the pirates watch the fights alone on their computer and post on bullshit sites all week saying how much the card is going to suck. Yet they will still watch it and just steal it. Nobody forces these thieves to watch the pay per view yet they always feel the need to say how this show or that show isnt worth “my $45”.
Seriously folks, the UFC just reported a ground breaking year for 2009 in terms of PPV revenue. So Lorenzo claiming that piracy of UFC fights is contributing to unemployment is a joke. Dana White may think his macho tough guy persona pull a lot of weight in the fight community but will it stop illegal downloads? Not a chance. Let’s look at the record industry and the film industry. Take any one player in either industry and they make Zuffa look like a lemonade stand in comparison. Is Dana White that delusional in thinking that he can succeed where Sony, Universal, and BMG failed? I don’t even think that meathead even knows what the internet means. How many times has Joe Rogan stated during live broadcasts that “You can’t stop the internet.” If Dana and Lorenzo want to go down fighting, I have one word for you, Metallica.
LOL at quoting Joe Rogan like he is some authority on the subject. I quit listening to Rogan after he started renaming all the submissions in BJJ because he is a pot head brain washed by Eddie Bravo. Through the govenrment you can stop the internet doubt it will happen but doesnt mean it cant.
As far as “ground breaking year in 2009” meaning people dont lose jobs. The UFC had a ground breaking year in 2006, 2007, and 2008. I garentee the UFC has more employees now than in 2006. If they quit trying to better their business in 2006. All the employess they hired since would not have a job with them. Thats called effecting jobs.