![]() Because many places take them up on this offer it means that many of the locations showing the fight will be paying a much lower price than they would have if they had purchased only this single event. If Khabib vs McGregor was a blockbuster boxing match it would surely generate much more from commercial pay-per-view sales, but because the UFC tries to convince bars to carry all their pay-per-views, they offer owners the chance to commit for a year at a discount. Over 20% of Zuffa’s total pay-per-view revenue every year is generated by commercial pay-per-view sales, although this percentage is guaranteed to be much lower for UFC 229 than it would for most of their other pay-per-view events. In addition to the residential pay-per-view sales the UFC will also collect a sizable amount of revenue from commercial pay-per-view sales, which are the closed circuit sales to bars, theaters, and other public venues. The average of all these different options is estimated to be around $36 a buy.īase on that $36 average here is what the UFC can expect to generate in revenue for a wide range of sales:ģ.6 million $129.6 million * UFC average for 2017 ** UFC 196 PPV sales What the UFC makes from the pay-per-view is therefore dependent on a wide range of variables, including what country it is purchased in, the provider it is purchased from, and whether it is the SD or HD version. Today digital buys are estimated to make up more than 20% of pay-per-view revenue. Five years ago digital sales made up less than 10% of all residential pay-per-view revenues. The VOD sales, categorized as digital pay-per-view buys by the UFC, have seen their proportion of the total pay-per-view revenues increasing over the years. (Endeavor also owns a streaming service in NeuLion, meaning that if it is purchased using that service the other 30% of that sale is still going to Endeavor.) For video on demand streaming, approximately 70% of the sale goes to the UFC. With cable television providers (Time Warner, Spectrum, AT&T), it is around 60%. With satellite providers (Dish Network and DirecTV), around 55% of the sales price goes to the UFC. Today the split is much more favorable to the UFC. On average the UFC would only receive 44% of a pay-per-view’s sales price. Years ago, before The Ultimate Fighter made the UFC a pay-per-view juggernaut, the split was much more in the provider’s favor. When someone does purchase a pay-per-view, the UFC does not get the full price but instead they have to split it with the pay-per-view provider. In US dollars the price of an Australian UFC PPV event is about 70% of what it costs in the US, while Canadians pay only 80%. With both the Canadian and Australian dollar being weaker than the US dollar, PPV sales in those two countries will generate less revenue per buy for the UFC. These prices are in the local currency though. Pay-per-view prices are typically the same in the US, Canada, and Australia: $54.99 for standard definition and $64.95 for high definition, with 2/3 of purchases being the more expensive HD. The international market is responsible for only 15% of the total PPV revenues, with Canada being by far the largest market, followed by Australia. The vast majority of the revenue generated by these residential PPV buys – 85% – will come from the domestic US market. The buys that Dana White is referring to when he predicts it will sell 2.5 to 3 million is the residential sales (homes) and doesn’t include commercial sales (closed circuit theaters and bars). The biggest source of revenue for the event will be from pay-per-view sales. ![]() The major difference will be the scale at which it is generated. Like many other UFC events, Khabib’s vs McGregor will be depending on ticket sales, sponsors, television rights fees, and pay-per-view sales to generate its revenue. So let’s say White is being honest, what does a blockbuster for the UFC look like? While White may not be the most trustworthy source, web traffic and other metrics do support the idea that it will be a very successful pay-per-view.
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