UFC pay-per-view costs have elevated 4 instances because the promotion inked its broadcast take care of ESPN in 2018. Unsurprisingly, that has led to a major enhance in piracy.
Over the past 5 years, the price of a UFC pay-per-view occasion has jumped up from $59.99 to the present $79.99 asking value which was implemented in 2023. Throughout a quarterly monetary name on Thursday, TKO Group Holdings president Mark Shapiro acknowledged that the aggressive enhance in price over the previous couple of years has resulted in a fair larger variety of pirated playing cards.
“ESPN and Disney had been very aggressive, if you’ll, on pricing the pay-per-views they usually have full management over that, however they’ve management given what they’re paying us for these rights,” Shapiro mentioned. “Over the interval of our partnership, they in all probability went a little bit faster and a little bit larger than we might have favored.
“We voiced that to them, particularly on this period of piracy the place we’re seeing our piracy numbers actually jacked up and we predict that’s pushed by them pricing it too excessive. They had been very receptive to that suggestions” (h/t MMA Fighting)
Shapiro additionally revealed that executives with TKO, together with UFC CEO Dana White, had a gathering with ESPN chairman Jimmy Pitaro to debate rising issues over the present value construction and the following piracy.
Because of this, ESPN started providing a reduced value for individuals who buy an occasion early versus ordering the cardboard on struggle evening.
“We had a gathering in Las Vegas just a few months in the past with Jimmy Pitaro and Dana [White],” Shapiro mentioned. “They took the value down, if you’ll, when it comes to providing a brand new advertising and marketing promotion the place if you happen to purchase by a sure date, properly in superior of the numbered fights, you will get a reduction after which the value after all will increase when you cross that date. They’re seeing good success with that.”
ESPN’s take care of the UFC expires on the finish of 2025
Whereas the promotion has seen its live-event revenues skyrocket lately, the identical can’t be mentioned for pay-per-view. Nonetheless, the general marketplace for UFC PPVs seems to be settling which Shapiro suspects may result in elevated income sooner or later.
“Like audiences within the dwell occasions the place we’re promoting out and breaking information and also you see all of it within the press launch, and just like the yield that we’re commanding, which in lots of circumstances particularly with WWE have been larger than we even deliberate for, we’re additionally sustaining our buys in terms of pay-per-view,” Shapiro mentioned. “So we really feel actually good about that.”
ESPN and the UFC are anticipated to go to the negotiating desk quickly as their present broadcast deal expires on the finish of 2025. With the promotion’s enterprise buddy World Wrestling Leisure making the transfer to Netflix subsequent yr, we may probably see the UFC comply with swimsuit and go solely to streaming.
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