Why is ufc on pay per view

Offer it at a low price and you entice more consumers into the market. The UFC is not subject to the same market forces as other products.

Pierre or Frankie Edgar. Thus, consumers are forced to make decisions. Having all the events available to the subscription buying public would negate the decision making process for consumers. They would draw many new fans into the sport. A UFC subscription would become a Christmas gift favorite wives buy for their husbands. The goal should be to draw new fans into the sport, fans that after being able to follow the fights for a while will become loyal fans.

By fostering an environment where fans could easily and affordably follow the sport, the UFC would be creating new fans Clear the market won't support per year anymore. According to Iain , with the amount they are making from their new ESPN broadcast deal , it would make more financial sense to sell their pay-per-views as television or streaming content. They make less than that on average on PPV buys for the last 12 months.

Iain makes a strong case. Revenue is generated for both through ticket and merchandise sales, while sponsorships are usually sold on a contractual basis and then allocated to each card. The major difference between the two is when it comes to how it can be viewed by the home audience. Even this number of buys is too high because it ignores another source of revenue available to PPV events — commercial PPV closed circuit.

Instead the overall number seems to stay the same, only individual shows sells more the fewer of them there are. There are a couple of likely reasons. They feature championship fights and other high-profile bouts with the biggest stars on the UFC roster. But, they got a huge surge in popularity in the mids, mostly because of the popularity of a related reality show on the cable channel Spike, The Ultimate Fighter. In , UFC would pull an all-time record for the promotion, with estimates indicating that the event attracted nearly 2.

These events cost money to watch.