Is this a one time event? or is it sort of a company that will keep putting more and more events on as time goes by?
Cause i was looking at it from the perspective of the first of many online performances to come.
Advertising Dollars won't appear instantly, its sort of a loss you have to eat at first in order to get viewers, advertisers want viewers ( if you have a great Account Rep/Sales Person, often they can get buyers by just promising the potential, but generally you'll need a strong following before the advertising dollars flow in)
As long as your fights are solid, you'll progressively gain viewers even charging the $5, and it will progressively grow to the point where you may be able to offer the service for free for a few times, to gain viewers.
I guess my main beef, from the marketing perspective is $5 is so little that it seems like its doing more damage than good, $9.95 is nearly double the amount, and will probably get the same amount of viewers as $5, I feel that $5 may give you just enough to pay your bills but turn off thousands of potential viewers, $9.95 would also turn off thousands of potentially viewers and maybe even a few hundred more, but would earn you significantly more profit, as most people that are willing to throw $5 at this, would throw $9.95 at this as well because they're fans willing to pay to watch boxing prospects.
In summery, I'd rather have 50k people watching and eat my expenses, because 50k watching this one, means 100k will be watching the next one, and thats a number i can give to an advertising agency to get some sponsors, and even if the fights blow or their ends up being technical difficulties, i'm still going to get more viewers on the next event, but if i charge and have those problems, i'm going to lose viewers for the next event.
If I'm going to charge, i'm going to charge $9.95 cause i think out of the 1000 people that will be willing to pay $5 i think 700 of those people would be willing to spend, $9.95 - 1000 fans when i charge, and put on a good show should parlay into 1100 - 1500 viewers next time, creating a gross earning of $5,000 for this event, and $5,500 for the next, for the grand total of $10,500
However, if i charge $9.95 but lose a few of the fans that are willing to pay $5 for a stream when they're used to streaming boxing for free, but for some reason not pay a little more at $9.95 I'm lowballing my true estimate of how many people i think i'd lose, and saying i'd lose a little more than 1/4 of the viewers and have 700 i make = $6,965 then next event based on a 10 percent growth rate for a successful product i get 770 viewers $7,762
Grand Total of 14,627 instead of 10,500
Just some thoughts
PrizeFight has been involved in some of the biggest fights in history for years now including, Lennox Lewis vs Mike Tyson, Lennox vs Vitali, Jones Jr. vs Johnson, Tarver vs Johnson to name just a few, they are planning to continue this as a series. Should be lots of fun.