How Long is HBO Going to Stay in the Boxing Business?

[RSBonos]

It has been a slow start to the year for both networks. I don't mind the upcoming PPVs since they will sell but neither Showtime or HBO have made it worth their customers money for the monthly subscriptions.

It happens sometimes they hit a lull and then come back with a strong summer/fall.

I wouldn't read too much into it yet. The Marquez fight will get big ratings.

[DoktorSleepless]

Here's my ideal outcome. Because of Showtime is constantly outbiding HBO, HBO gets out of the boxing business altogether after it becomes too expensive for what they get out of it. Soon a head Showtime honcho finally wakes up and realizes Haymon has taken over their boxing department, and it's making them unprofitable because what they're paying for purses is unsustainable. Said head honcho disbands Showtime's boxing department following HBO's lead.

The entire premium cable-boxing alliance completely collapses and boxing promoters are forced to start anew. Regular network TV once again has a chance to bid cheap prices to get name fighters on their airwaves. Boxing flourishes with a mass audience. HBO gets back in the boxing business only buying the BIG fights (at reasonable prices this time after they've learned from their past mistakes) instead of a buying a bunch tuneups. All is great the world.

[mrpain81]

I kind of get this impression as well, but without numbers (where would we of the peanut gallery even get them?) it's tough to speculate. Is it possible that HBO's investment is remaining static and Showtime is steadily upping it's budget?

I'm sure the bottom line is the bottom line and HBO's perception of it in the context of their entire business.

Btw, your first post was clear. You have no wish for one or the other to fold (nor does anybody that is actually fan of the sport, I would think). There must be some other issue that's drawing you hecklers.

I keep hearing people say that HBO has this huge boxing budget compared to SHO which isn't the case anymore. Back in 1999-2000 the HBO budget was $100 million!! With that big of a budget they could afford to have DLH fighting on regular HBO, Trinidad vs. Whittaker on was also on regular HBO as were a lot of Lennox Lewis fights. Almost every year since then HBO has been slashing it's boxing budget, 5 years ago the HBO boxing budget was $70 million. Last year the budget was at it's lowest point probably ever at $35 million, I don't know the numbers for this year but I haven't seen any indication that the numbers would have gone up. More then likely the numbers have been slashed again for this year.

Now SHO has always been the little brother to HBO never being able to compete since they have a smaller subscription base and couldn't match the 500 pound gorilla. With HBO neglecting it's boxing SHO has seen an opportunity and is actually increased it's boxing budget, 5 years ago SHO had $20 million for Boxing. Last year they increased it to at least $28 million.

For 2013

Moonves was serious about upgrading Showtime's boxing content after losing Pacquiao back to HBO. He's responded by dramatically increasing Showtime's boxing budget

http://sports.yahoo.com/blogs/boxing/former-hbo-sports-exec-ross-greenburg-joins-showtime-184805714--box.html

SHO got rid of MMA so that money was probably injected into the boxing budget, regardless SHO is making big moves while HBO is keeps downsizing the sport that put it on the map.

So when you see people saying that SHO can't compete with HBO because of the budgets it's simply not true, they are probably neck and neck right now but we don't know the exact figures.

2012 Boxing budgets:

Neither HBO nor Showtime discusses its boxing budget publicly. But two well-connected boxing sources said that, based on what they have been told and observed, HBO’s budget will be about $35 million this year, about half of what it spent as recently as five years ago. In contrast, Showtime will increase its budget to at least $28 million.

http://m.sportsbusinessdaily.com/Jou...BO-boxing.aspx

http://www.boxingscene.com/forums/showthread.php?p=13208192#post13208192

[sdcluser]

HBO used to be boss and would squash Showtime if they even thought about interfering in their plans at all, and now HBO could be letting what is one of the best fights they could make slip away.

it's best if boxing goes out of cable network and go into prime major networks. This will bring the sports back and make boxing truly accountable.

[mrpain81]

I used to think HBO would get out of the boxing business but now I'm not so sure. With the big success of Netflix and HULU, it's not necessary to even have cable for movies or shows. Cable is a huge ripoff if you just need it for a couple movies you watch a week and a couple shows. Young people for sure aren't going to be getting cable like their fathers since it's so much easier to buy a show or even steal it online with great quality.

The important thing is going forward for Cable and Satellite is live sports, that's something where friends/families come together and watch. Football on Sundays, the world series, fight nights. That's something where watching it live is a must and watching a crappy stream that is always pausing isn't going to cut it.

So yeah HBO better double down imo because SHO is in it to win it.

[The Gambler1981]

it's best if boxing goes out of cable network and go into prime major networks. This will bring the sports back and make boxing truly accountable.

I don't think it would go that way, I think it would go to the sports networks seriously there are so many now, I think some would pay quite a bit for quality boxing. Not 1 would make up HBO (unless ESPN got gutsy with boxing which is the best case scenario) but in total they might be able to do better and reach more eyes.

[L3TH4L]

Exactly. I mean you got 7 out of 10 fighters making over 500K a fight not counting all the other costs that go into putting one of those events on. They can only make it showing prospects on the come up but not enough viewers will watch those fights and not enough viewers watch the bigger fights to cover the huge paychecks either.

Once Pac and Floyd retire, there is just Canelo. There are no more "stars" that will attract a big fan base.

It seems that way because Floyd and Pac haven't retired yet. When that time comes the fans won't have any other choice but to direct their attention to the next rising prospects.

[The Gambler1981]

I used to think HBO would get out of the boxing business but now I'm not so sure. With the big success of Netflix and HULU, it's not necessary to even have cable for movies or shows. Cable is a huge ripoff if you just need it for a couple movies you watch a week and a couple shows. Young people for sure aren't going to be getting cable like their fathers since it's so much easier to buy a show or even steal it online with great quality.

The important thing is going forward for Cable and Satellite is live sports, that's something where friends/families come together and watch. Football on Sundays, the world series, fight nights. That's something where watching it live is a must and watching a crappy stream that is always pausing isn't going to cut it.

So yeah HBO better double down imo because SHO is in it to win it.

That is true live sports/entertainment is the most valuable thing in TV currently. I actually think boxing is going to gain value no matter what because the sports networks need live sports and boxing is pretty flexible then if bigger fights become available they will run with that.

[sdcluser]

I don't think it would go that way, I think it would go to the sports networks seriously there are so many now, I think some would pay quite a bit for quality boxing. Not 1 would make up HBO (unless ESPN got gutsy with boxing which is the best case scenario) but in total they might be able to do better and reach more eyes.

You are probably right. Having fights on ESPN, Fox would be fine with me. To be honest, some of the Friday Night Fights are decent. Just need more of it. Or some sort of tourney format. Keep the audience intrigued. But I am hoping less with SHO and HBO the better. If you think PPV or premium cable is the answer then why doesn't NFL do PPV. People would pay thru the roof with PPV for Superbowl.

[al-Xander]

Subscription-based boxing will eventually die. Subscribers are basically getting an average of one fight event per month. Many of them are crap. It's probably best that networks scrap them altogether and do all fights on PPV. Pay for the ones you want to see. But then it will be a slow death for the sport.