Comments Thread For: Could The DAZN-Canelo Deal Lead To The Demise of PPV?

[KTFOKING]

As far as paying for both Sky and BT goes.. youll find the majority of the UK audience pay for one or the other as both Sky and BT offer home phone, broadband and TV all into one.

A UK customer will be with one provider for everything, and simply have a small package on top of that for the SKY and BT sport channels, which isnt a huge amount. I pay 90 a month for TV with Sky sports, BT Sports , 250mb broadband and unlimited home phone landline usage, thats roughly 118 dollars. sure i buy PPV

Below are the PPV fights from Sky box since the beginning of 2017. Theres 9... thats half of what you said.
BT Sports have njot yet put on a PPV show with fury / wilder being its first.



It doesnt matter what network Spence and Crawford are on.. it wouldnt matter if theyre on the same network. The fight doesnt generate any buys .. therefore no network can give them the purses they want by providing a guarantee against PPV buys.

The only people who could would be something like DAZN who would provide a guarantee against subscription figures, maybe even make a loss, but offset that using financials from their other territories.

If showtime boxing makes a loss out of its funding, it doesnt get offset by the entertainment sector giving them money to prop it back up again. DAZN would have expendable cash from other sources to alleviate whatever loss may potentially be made.

The spence crawford PPV is a pipedream unless they both settle for a lot less money

Was Groves/Eubank not PPV? Or even Groves/Smith? Thought one of those two were, but even if you want to say only those four, you have Usyk/Bellew, Wilder/Fury, Chisora/Whyte and Frampton/Warrington coming up. So you will be at 8 PPVs if neither of Groves fights were on PPV. That still ends up getting you close to $200 bucks for PPVs in 2018, more than stateside.

And it would depend on the type of purses Spence/Crawford will be wanting. I mean they made Garcia/Thurman where both made over $3 million each. The problem here is Spence gets $3 million to fight O'campo, and Crawford gets $3.6 million to fight Benavidez. That fight by end of 2019 can be built to do decent numbers. If Crawford keeps drawing these big ratings and Spence gets another marquee win over someone like Garcia or Porter, his star would only rise. And imagine if he gets Garcia or Porter on CBS or FOX? Will it do 500k as Bob says? Highly doubt it, but potentially 275-300k? Sure.

[KTFOKING]

They aren't going away. PBC is going to be doing them on average every other month. They are going to really rely on them. December is Wilder-Fury then Jan is Pacquiao-Broner plus there is talk of Spence-Garcia for February, Mayweather-Pacquiao2. They will probably have 6 ppvs next year.

The big question is how many are SHO PPV and will any be FOX PPV?

I don't consider Mayweather PPVs as PBC. He's his own entity as I stated. No one was saying Mayweather/Pacquiao was PBC.

We shall see on Spence/Garcia being PPV. Maybe, but doubt it especially if Broner/Pac goes in Jan on PPV.

And FOX from their deal will get two PPV shows a year I believe. The Broner/Pac card will likely be FOX PPV.

[REDEEMER]

Pay Per View cannot continue on over the 2019 period. No one is going to want to pay for one event when the majority of them are going to APPs ,not hard to figure this out at all . Maybe in the U.K and other places where PPV is cheap but it cant thrive in the U.S here.

[yammy25]

Can somebody tell me how do you recoup the $80 in revenue per buy/sub when one costs $90 and the other costs $10. And you're also losing out on international TV rights fees. How would Canelo and GGG make the same amount of money at $10 a sub that they did at $90 a buy?

probably offsetting costs to minimize losses on DAZN's part, but i mean i agree with you here.. youd need 3.6 million subs just to poay canelos guarantee per fight not counting any other costs.

They likely have a coffer of money they expect to lose through paying such a high guarantee.

I dont think that theyd lose out on international TV rights though.. i imagine that whilst the fight will be shown in DAZN's territories GBP would be free to sell to non DAZN territories such as the UK. Sky would probably bid for UK rights if those fights included matchroom fighters.

If they included matchroom fighters it still wouldnt be part of the SKY/DAZN agreement as that only extends to the 16 matchroom US shows... so i think Sky would still have to bid if they wanted to show it here.

[JackJohnson1908]

I really think that they have underestimated the overall power of illegal streaming in th U.S, and the fact that we are already overwhelmed with monthly subscription apps. That 365 million would have best served them if they used it to build a casual boxing friendly stable and build stars from the ground up. That would have had more of a long term financial impact than banking on Canelos fanbase and popularity. It sounds good in theory, but we will soon see.

[rolshans]

Can somebody tell me how do you recoup the $80 in revenue per buy/sub when one costs $90 and the other costs $10. And you're also losing out on international TV rights fees. How would Canelo and GGG make the same amount of money at $10 a sub that they did at $90 a buy?

Well they'd get their money from DAZN, who seem willing to pay more than the networks. Now, how does DAZN make up that money?

The answer is customer retention.

First, it's important to remember that networks take 45% of PPV revenue, which is an insane profit margin. DAZN doesn't need to hit those margins to stay afloat.

DAZN is banking on a certain number of people paying $10/month for the whole year. $120 for the whole year as opposed to the $140 that would be spent on PPVs.

Still, DAZN is taking risks, and they will be in the red until they get their subscriber base up.

[Butch.McRae]

Showtime App is 8.99. On my directv its $12 and HBO $17. Now I get DAZN and ESPN+ for less than I paid for HBO. They both are great deals

I cancelled my original SHO plan after the last Mikey fight lol I was planning to start it again for Garcia v. Porter, then I got offered their 4.99 plan lol signed back up.

HBO was a complete rip off (well until GOT comes back lol). ESPN+ has become much more appealing now that Arum has made those international deals (you called that; I remember). DAZN has a solid boxing lineup now too. I think the best content they have is the WBSS. So less than $25/month will get me all I need now.

Things have rounded out well.

However, people are crazy to think PPV is going away lol

[Butch.McRae]

Well they'd get their money from DAZN, who seem willing to pay more than the networks. Now, how does DAZN make up that money?

The answer is customer retention.

First, it's important to remember that networks take 45% of PPV revenue, which is an insane profit margin. DAZN doesn't need to hit those margins to stay afloat.

DAZN is banking on a certain number of people paying $10/month for the whole year. $120 for the whole year as opposed to the $140 that would be spent on PPVs.

Still, DAZN is taking risks, and they will be in the red until they get their subscriber base up.

They'll be in the red for close to a decade. It'll take landing a big deal (like the NFL or NBA), then a few years after before they'll see the black.

However that's not all that uncommon for a tech startup. It's early.

[jbpanama]

Who the hell watches full movies/fights on their phones using data instead of wifi???

I've only streamed a couple of fights on Showtimes platform...

And the quality was very poor and unless they get it better I say:

NO MAS...!

[Randall Cunning]

probably offsetting costs to minimize losses on DAZN's part, but i mean i agree with you here.. youd need 3.6 million subs just to poay canelos guarantee per fight not counting any other costs.

Its all about retaining the subscribers. Say Canelo brings in 1.5million unique subscribers, they'll be trying to retain the highest % of that number. If they manage to keep a third, that's $5 million a month extra.

Its why theyre making the first one free, card will probably be loaded aswell. They want as many as those viewers to stick around as possible.