From Lance Pugmire of the LA Times:
Promoter says boxing pay-per-views will become few and far between
http://www.latimes.com/sports/boxing...103-story.html
Promoter says boxing pay-per-views will become few and far between
After last week’s proposed $85-billion*purchase of HBO’s parent company Time Warner by AT&T, Arum said he’s come to theorize that the landscape for televising big fights will change.
“There’s no reason for [premium cable providers] to be in the pay-per-view business,” Arum said. “They don’t make any money to speak of in pay-per-view. When you add in the staffing expenses, it’s not a profit center.
“Take a good 500,000-buy pay-per-view. They make $1.25 million and pay a [replay] delay [cost] of $750,000. When you take into account the expenses —*travel, hotels —*if they make $250,000, it’s a lot of money. It’s not worth it; $250,000 is nothing. So I believe pay-per-view will be left to promoters, or a company who can do it. … There’s no real role for a premium network to do pay-per-view anymore.”
“There’s no reason for [premium cable providers] to be in the pay-per-view business,” Arum said. “They don’t make any money to speak of in pay-per-view. When you add in the staffing expenses, it’s not a profit center.
“Take a good 500,000-buy pay-per-view. They make $1.25 million and pay a [replay] delay [cost] of $750,000. When you take into account the expenses —*travel, hotels —*if they make $250,000, it’s a lot of money. It’s not worth it; $250,000 is nothing. So I believe pay-per-view will be left to promoters, or a company who can do it. … There’s no real role for a premium network to do pay-per-view anymore.”
As Arum’s awareness of the television business has increased, he speculates the proposed AT&T purchase of Time Warner will boost Turner Sports’ standing in the fight game.
“My theory is Turner Sports will handle all sports activities for the new company, including HBO, with just three, four major fights on HBO and Turner [functioning] like ESPN to ABC.
“If [AT&T] feels boxing is important, fights that would be on [HBO’s secondary boxing show] ‘Boxing After Dark,’ and other activities, will be on Turner, and they’ll be out of the pay-per-view business,” Arum said.
“My theory is Turner Sports will handle all sports activities for the new company, including HBO, with just three, four major fights on HBO and Turner [functioning] like ESPN to ABC.
“If [AT&T] feels boxing is important, fights that would be on [HBO’s secondary boxing show] ‘Boxing After Dark,’ and other activities, will be on Turner, and they’ll be out of the pay-per-view business,” Arum said.
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