Benedicte Guichard| Wed Oct 12 2016 CET| Live pay-per-view
PPV has a very important role for consumers and broadcasters despite the addition of other new premium options. Cleeng, as a PPV specialist, has tons of know-how and insights on how this model evolves. Our past experience and detected patterns just re-affirm that pay-per-view remains a big market for broadcasters, and the PPV focus is a no-brainer.
As an additional service to the pay TV packages, PPV is a great supplement to on-demand video.
For movies, some users continue to use PPV out of habit, even though broadband connections to the satellite operator’s set-top box and video-on-demand (VOD) provide greater selection and functionality. According to Brett Sappington, senior director of research at FierceCable, there are cases where some consumers (particularly older consumers), prefer to use PPV by calling to order access to an event, though more convenient ways of ordering are available. For homes without fixed broadband connections or with limited connectivity, PPV is still a critical option for accessing movie content, including data-intensive formats such as HD, 3D, or 4K/Ultra HD.
For sports content, the pattern is quite different. Sports organizations (federations, leagues and clubs) are pretty enthusiastic about going direct-to-consumer and do self distribution via over-the-top. Many organizations like the WWE, WFTDA, NBL and IMG transitioned its business (or part of it) online and introduced their own OTT services. Live sporting events always attracted the biggest attention from fans and enriching the full viewers experience is the main focus point for major broadcasters.
Over-the-top sports seem like the most flexible way to do it. One big incentive for this step is setting up a stable stream of revenue throughout the year and making the company less reliant on pay-TV PPV to drive revenues.
The biggest problem that pay TV suppliers face nowadays is the increasing total costs of its services. The average pay TV subscriber paid $73.63 for cable or satellite back in 2011 and now are facing a much saltier bill: $103.10, according to the Leichtman Research’s annual study.
Combat sports, and boxing in particular, were always relying on PPV as their major revenue channel. Boxing pay per view broadcasts have always been part of the sport and the fighting business, people really love gathering with their pals on a Saturday night chipping in for a pay per view. Issues arise where saturation comes in. Flooding the market with too many pay per view event takes away from the appeal of the big fights.
Biggest players, or organizations with millions of engaged fans, will always have pay-per-view in their plans since it guarantees revenues. And that’s because of their freedom to reach the audiences directly.
The most successful broadcasters of live events are the ones that:
Here at Cleeng, we had the chance to help some of the biggest organizations in the boxing world to sell their major live events online. Golden Boy Promotions and One Championship are pretty comfortable to go over-the-top and sell online.
Learn how you can set up a event live stream, plus some industry best practices: