Showtimes not focusing on profit with Mayweather.
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profit in the long term is what they care about.
businesses take losses on certain items, entire years, all the time.
ever bought a $1 beer at happy hour? it's the same concept.
there's a level of depth and planning that comes with owning and steering a business, and most people do not have it. they don't think in those terms. they get paid by the hour and go home.
lets just call it balls. showtime signing mayweather and taking a loss on some of his fights takes f#cking stones. these are not ****** people. they aren't doing this because they're dumb. they're doing it because they have balls that are bigger than yours.
you need balls to do what showtime is doing right now, because it may not pay off. if it works, which isn't starting to look that off base, they will pass HBO in terms of their boxing coverage.Comment
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See that is the thing people get twisted and think a one off profit on a small event in the grand scheme of things is a big deal to a company as big as CBS/Showtime, before they even signed that deal they knew the risks and what their goals for the deal were.
It is about growth which you could call long term profits, and growth is worth more to the stock price than just a profit because it is looked at as a multiplier.Comment
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Some people on this site are just...
''The company has been around for 30 years''- And? Google has been around for 20 years; that didn't stop them from investing money on things like Twitch, Youtube and others that I do not know of. Companies are always making acquisition, even if it comes at short term loss; it helps them stay relevant long term and improves the marketability of other products.
"Showtime aired big fights in the past"- And. Microsoft was unrivalled in the 90s, Yahoo was once a top search engine and ******* was the dominant social networking site. Relevance is subject to change; it cannot be denied that in the 00s HBO was the dominant network for boxing, having a strangle hold on Pacquiao and Mayweather, the two biggest ppv stars of this era.
"Showtime is losing money"- A narrow and inaccurate view. Due to the Canelo fight, things should be breaking even or have a slight profit, but that's not the main point. We do not know what their long term strategy is, or how improving their boxing brand will affect ad revenue for their non ppv bouts. Whether or not acquiring Mayweather's services is profitable will show, in the next 5 years, through whether or not that they have a sought after stable of fighters.
Guys like Thurman, Broner, Canelo, Maidana, Matthyyse and Guerrero have seen an increase in their marketability. The long term goal will probably be turning them into ppv stars. If they can collect even 400k ppv bouts, it would be a good thing because they will command less money.
good post.
"the next floyd mayweather" isn't going to start at a 30 million dollar guarantee.
the guy who beats mayweather is something that showtime is thinking about right now. floyd's not going to fight forever.Comment
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Listen, Showtime is part of a mult-billion dollar conglomerate, and it's down right ignorant to be discuss its business on the level it's being discussed, because none f us on this board know how Showtimes revenue has been marginalized, to increase its overall Capitol and market share.Comment
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Ratings? Mayweather don't fight on Showtime Network, they just had a Record Breaking PPV Event with Mayweather vs Canelo that is what they signed Mayweather for not for the Network Ratings
Before Mayweather deal Showtime did not even have a PPV StarComment
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It's not balls, it's ******ity. HBO thrives not because of boxing, but because of their regular programming. You don't need Mayweather to attract subscribers. All you need is improve your regular programming. If you want to attract subscribers interested in boxing, all you need is produce meaningful non-PPV fights at a regular basis. SHO hasn't produced as many fights as expected. Many who bought subscriptions were very disappointed. Non PPV fights have become extremely rare.Comment
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They also had the replay of the fight on their free preview weekend and I see his mug on every commercial hocking Showtime so obviously there is more to it than just short run profits.
Hell I wouldn't be surprised to see Mayweather pop up in a Penny Dreadful commercial at this pointComment
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