How PPV works

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  • about.thousands
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    #1

    How PPV works

    The promoter will make a fight between two combatants, along with an undercard to support it. He approaches the pay-per-view distributor, like HBO PPV or Showtime PPV (or the new entrant, Epix) with that fight, and the distributor makes the decision as to whether to carry it or not. If the fight gets the green light, the distributor goes to work clearing the fight with the MSO’s (multiple system operators) who control virtually the entire cable universe. These include companies like Time Warner, Cablevision, Comcast. Cox and Charter.

    The standard breakdown as far as money is concerned is a 10% fee off the top for the distributor, with 45% each for the cable system and the promoter. So when you see a price tag on a fight, you know that the promoter will get about 45% of that

    If a fight sells a million pay-per-view subscribers, HBO’s pay-per-view arm will get $5 million and the promoters will pocket $22,500,000. If that level of revenue, along with the other revenue streams (live gate or casino site fee, merchandising, international rights, etc.) did not meet what the promoter guaranteed the fighters, well, let’s just say that would be an unfortunate occurrence.
    .

    http://goo.gl/5RcL4w


  • HeroBando
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    #2
    Good writeup. Floyds Showtime contract being the exception, with the network making huge Ppv guarantees

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    • fanofslug
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      #3
      Thanks for that

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      • about.thousands
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        #4
        Originally posted by HeroBando
        Good writeup. Floyds Showtime contract being the exception, with the network making huge Ppv guarantees
        The real winners are the MSO's. I wonder what's their cost to host a PPV on their system. I know they ran into trouble the day of the fight because orders were coming in they couldn't fulfill. That happened to a friend of mine.

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        • .!WAR MIKEY!.
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          #5
          The info is pretty much common knowledge, just the percentage change a bit.

          Originally posted by about.thousands
          The real winners are the MSO's. I wonder what's their cost to host a PPV on their system. I know they ran into trouble the day of the fight because orders were coming in they couldn't fulfill. That happened to a friend of mine.
          what happened? lol they ordered it and what the ppv channel was still locked? you would think the providers will have a system where upon payment the channel unlocks automatically but maybe it was a infrastructure problem where they didnt assign enough equipment etc to push ppv event (IDK just guess probably not even how cable works but I know with streamsing you needs to have the bandwidth behind it to push a live stream legitly)

          I order my ppv's days before it happens but I never heard of this but I also dont have that many friends who buy ppv fights (they all come to my house)

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          • HeroBando
            I love Mayweather
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            #6
            Originally posted by about.thousands
            The real winners are the MSO's. I wonder what's their cost to host a PPV on their system. I know they ran into trouble the day of the fight because orders were coming in they couldn't fulfill. That happened to a friend of mine.
            Yeah no doubt, its free money, no risk.

            I do think HBO is partially on the hook for some of these ppvs, in particular Kov vs Ward and Stevenson, if it happens.

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            • about.thousands
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              #7
              Originally posted by !WAR ROSADO!
              The info is pretty much common knowledge, just the percentage change a bit.



              what happened? lol they ordered it and what the ppv channel was still locked? you would think the providers will have a system where upon payment the channel unlocks automatically but maybe it was a infrastructure problem where they didnt assign enough equipment etc to push ppv event (IDK just guess probably not even how cable works but I know with streamsing you needs to have the bandwidth behind it to push a live stream legitly)

              I order my ppv's days before it happens but I never heard of this but I also dont have that many friends who buy ppv fights (they all come to my house)
              A lot of money was left on the table that night. Some people who ordered the day of didn't get the fight or had technical problems.

              http://sports.morganwick.com/2015/05/what-the-mayweather-pacquiao-distribution-problems-say-about-the-future-of-linear-television/#sthash.M48wjOV3.dpbs

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              • Holystroke3
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                #8
                Xfinity wouldn't let me order Mayweather vs Pacquiao on fight night until shortly before the main event. The ad that said "click here to order" had no option to order after you clicked on it

                Then for Mayweather vs Berto I ordered on Live Events Viewer on my PS4 and it cut off after the 11th round

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                • about.thousands
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                  #9
                  Originally posted by Holystroke3
                  Xfinity wouldn't let me order Mayweather vs Pacquiao on fight night until shortly before the main event. The ad that said "click here to order" had no option to order after you clicked on it

                  Then for Mayweather vs Berto I ordered on Live Events Viewer on my PS4 and it cut off after the 11th round
                  Did Comcast (Xfinity) give you some of your money back? Did Sony give you some of your money back?

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                  • Holystroke3
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                    #10
                    I'm not sure about Comcast because it was at a friends house but Sony didn't refund me anything. Live Events Viewer set an expiration time of 12:30 am eastern (I think) and the event cut off at that time but the fight wasn't over

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