The Sports Business Journal recently ran an in depth section focusing on the importance of content. One of its features included Top Rank Boxing and its strategy of producing its own feed for PPVs with the future hope that fans will turn to its web site as opposed to cable and satellite providers.
When subscribers pay $60 for a PPV, half of it goes to cable and satellite companies. Top Rank is attempting to cut into that pie by offering its own broadcast on its web site. Top Rank has teamed with MLB Advanced Media in developing content for its web site and offering its own production of its events. This includes its own feed of the PPV with its own camera angles and broadcast team.
Top Rank states that 3,000 people paid the same amount charged by satellite and cable providers for Pacquiao-Marquez IV. The belief is that with the growing amount of cord-cutters, the number of those ordering PPV online in the future will increase.
In addition to airing PPVs, the Top Rank site includes weigh-ins, interviews and behind the scenes content.
Payout Perspective:
The UFC has looked into partnering with XBox in hopes of finding alternatives than the traditional PPV measures. The one issue pointed out in the SBJ piece is that a move to online PPV eliminates the promotional assets of the satellite and cable companies. This is something that boxing and the UFC rely on in promoting its upcoming events. The other issue is the reliance of live streaming. Several organizations including Invicta and the WWE have experienced technical difficulties during its live events. This can be a big issue if the platform becomes unreliable. But, turning to its own self-production of its product can mean bigger profits for the company.
Top Rank is outdated and old.
The web is based on platforms. You will always have to share revenue with distributors that help market the product.