Dimitar Serafimov| Thu Aug 24 2017 CET| Cleeng Nuts & Bolts
It’s time to share our own insights on the pricing levels for live pay-per-view events. Ticket prices tend to vary significantly across geography and verticals covered.
Without a doubt, the cord-cutters are the main drivers of OTT and SVOD adoption. This category of viewers doesn’t want to be at the mercy of rigid pay television packages, as they like to choose where and when they watch their favorite events. Price is the key factor that triggered this category of people to cut their cords.
However, a new survey done by Morning Consult showed that people, in general, are not watching less television but they are just increasingly choosing streaming services. The same survey pointed that younger viewers think they’re paying too much for streaming services — but they’re still willing to sign up if they want to watch a specific show.
The pricing associated with subscription VOD services has been heavily discussed in the industry media, including this blog. In this post, we will share our own insights on the pricing levels for live pay-per-view events. The numbers are extracted from a sample of 4000 live events with registered transactions.
The first chart shows that EMEA and North America can afford to put a higher price tag on live events (over 30 EUR) and still attract viewers who are ready to pay. This is mainly due to the general economic strength in these regions and the adoption levels of mobile and e-commerce. Regarding North America, it’s worth mentioning that we recorded a staggering 20% YoY growth of the PPV ticket prices in the last three years.
By looking at the data per verticals or industries, religious and business (conference) events have significantly higher prices compared to sport and entertainment events. This pattern is expected since religious, business and educational events have smaller, but very engaged audiences that want guidance and networking.
When we look at the numbers for the last three years, we can note that the average prices tend to grow only for the religious and sports vertical. The ever-increasing price of the broadcasting rights obviously has a direct effect on the PPV ticket prices, but fans don’t mind paying for a premium service.
We hope these findings are useful for our live broadcasters and their future strategies. Stay tuned for more insights coming from our analytics team.
Here are some handy tips on how to get the most out of your live PPV events: