Following in the footsteps of boxing pay per views, UFC is bumping up the price of its PPV for UFC 168 by $5. The cost for the December 28th event will be $59.95 HD and $49.95 SD.
If you are DirecTV subscriber, you may have received your December 2013 “DirecTV Cinema” flyer in the mail. On the back page, there’s an ad for UFC 168 which reflects the price hike.
Earlier this year, boxing hiked up its PPV price points starting with Floyd Mayweather’s return to the ring this fall as he faced Canelo Alvarez. The $75 HD price point did not deter fans as it hit 2.2 million PPV buys. The next month, Juan Manuel Marquez faced Timothy Bradley which received over 375,000 PPV buys and charged fight fans $64.95. The Manny Pacquiao-Brandon Rios PPV cost $64.95 but the PPV numbers are disappointing for a Pacquiao fight as Bob Arum believes it will end up between 490,000 to 510,000 PPV buys.
Payout Perspective:
The big question is whether the price increase is a one-time thing or the new price point from UFC 168 on. The uptick in price was likely inevitable due to the success of boxing’s price increases this past fall. Obviously, boxing events are spread out more while the UFC puts on PPV events every month. Also, the quality of PPVs varies. However, the UFC is banking on UFC 168 being its biggest event of the year with Silva-Weidman II and Rousey-Tate headlining. We shall see what the price increase does to PPV buys and whether this is an across the board raise in price.
Any news on the GSP PPV?
“However, there are some in the boxing industry who claim the fight didn’t crack 400,000 buys.”
http://espn.go.com/boxing/story/_/id/10080373/manny-pacquiao-brandon-rios-hits-500000-pay-per-view-buys-promoter-bob-arum-says
That means it did Under 400K PPV Buys
My prediction was Pacquiao v. Rios 550K $69.95 (est.),650K $59.95 (est.)
HBO BAD: 11/30/13 HBOM 10:21 PM 1.10 million viewers Manny Pacquiao V. Brandon Rios
HBO BAD: 11/30/13 HBOM 11:09 PM 1.13
HBO BAD: 11/30/13 HBOM 11:31 PM 1.25 million viewers Sergey Kovalev V. Ismayl Sillakh
HBO BAD: 11/30/13 HBOM 11:36 PM 1.17
HBO BAD: 11/30/13 HBOM 11:59 PM 1.30 million viewers Adonis Stevenson V. Tony Bellew
HBO BAD: 11/30/13 HBOM 12:21 AM 991
http://tvbythenumbers.zap2it.com/2013/12/04/saturday-cable-ratings-college-football-wins-night-sportscenter-let-it-snow-more/219568/
I don’t see there being any chance this is a one-time thing, this is the new price folks. Any idea when the last UFC PPV price rise was?
Don’t remember the date the last one was. But I have had to endure many of them. I started buying them when they were $20-$25. Then they went to 29.99. and then rose 5-10 every few years. The last time they raised it for a big event and then went back to the lower price for a few events and then back up for good. They kind of soften you up to the blow.
I would like this to be the price of the major events. A way to milk mainstream trend followers rather than everyone. But I do think the price will stay up. Its just good business to raise the price. Boxing has shown the market will pay it. MMA demo has always had more disposable income. Not to mention this will help reduce the revenue loss if the UFC cuts the number of PPVs like they said there were.
@LeonThePro
I heard differing information on the GSP PPV. I would defer to Jose on that one.
@BS
According to our friend, 2008 was the last time there was a price increase.
Boxing raises the price when it’s a massive fight like Mayweather Vs Canelo, and Mayweather fights usually cost more but if he fights someone like Khan or Alexander next i’m guessing it will go down a bit. Pacquiao Vs either Marquez or Bradley will cost a bit more than both Pacquiao-Rios and Marquez-Bradley did because both are seen as bigger fights.
Thanks Jason. I knew it was post TUF. Just wasn’t sure when. The only way this PPV increase isn’t permenant is if PPV sales are weak and the UFC thinks the increase is the reason.
To be honest this was a long time coming. Most people who go the HS route just count it as a $60 purchase anyway. Just as I always count it as a $50 purchase when I buy it. To be honest I have bought every PPV and have just assume it was $50. Im so used to just calling in and ordering it I haven’t looked at the price and many many years. I don’t think this increase will have any negative effect at all. $5 increases are much easier to swallow than $10 for some reason. % and no one cares. 10 and all hell breaks lose.
Seems like the right business decision for their biggest fight of the year. I personally don’t see it affecting the buy rate which should reach 800 to 900K mark.
I think it is shameful for DirecTV to charge me $10 extra for HD PPV when I’m already paying them extra for an HD receiver and HD service. I’m not going to miss the fight, which is what I’m sure they are counting on, but they are going to take a big hit in my loyalty when it comes time to renew my service or go elsewhere. The little nickel and dime strategies like this are things customers remember for a long time.