DAMN iNATOR
03-01-2007, 11:21 AM
Ultimate Fighting matches WWE for top pay-per-view events' revenue
By Adam Goldman, Associated Press
NEW YORK -- In the tough business of putting on pay-per-view events, Ultimate Fighting Championship is no longer getting counted out.
The upstart company that specializes in mixed martial arts matched the once dominant World Wrestling Entertainment Inc. in pay-per-view revenues during 2006 and surpassed boxing-titan HBO. The three companies make up the bulk of the pay-per-view business.
"It was a killer year," UFC president Dana White said.
UFC, a privately held company owned by Zuffa LLC, does not release financial results and White would not discuss them. But an industry executive familiar with the results said the company's 10 pay-per-view events generated more than $200 million in customer retail revenue.
WWE said it had 16 events that generated approximately $200 million in revenue and HBO had 11 events, reporting revenue of $177 million.
Typically, the companies take home about half of hose customer retail revenues with cable companies getting the rest. The cost of the fights vary. People paid $39.95 to see UFC fighters pummel each other while WWE's brawls ranged between $34.95 to $49.95. HBO's most expensive events cost $49.95.
The performance marks a significant turnaround for the Las Vegas-based company -- once maligned as nothing more than a money-losing venture that promoted brawlers in a cage. UFC fought back using a television show on Spike TV, getting more states to sanction the fights and drawing huge crowds to the live events.
The strategy has appeared to work in a big way, helping spur more PPV buys -- sales of one event per household -- thanks to the popularity of UFC fighters such as Tito Ortiz and Chuck Liddell. UFC has a major PPV fight Saturday in Columbus, Ohio, where heavyweight champ Tim Sylvia and Randy Couture will slug it out.
"UFC has reinvigorated the pay-per-view category," said Deana Mears, a senior analyst at Kagan Research LLC that tracks the industry.
To spark interest in pay-per-view events, WWE and UFC also air bouts on various networks. WWE's shows -- "SmackDown", "RAW" and "Extreme Championship Wrestling" -- have been the top rated shows on their respective networks. HBO helps promote its fighters on "Boxing After Dark".
One big difference between WWE and UFC is their audience. Thirty-nine percent of WWE's buys came from international viewers. UFC doesn't have a slice of the international arena but intends to grab market share from WWE when it holds its first pay-per-view fight in Manchester, England on April 21. White noted UFC has initiatives in Canada, Mexico and England, where it recently opened an office in London.
Discuss.
By Adam Goldman, Associated Press
NEW YORK -- In the tough business of putting on pay-per-view events, Ultimate Fighting Championship is no longer getting counted out.
The upstart company that specializes in mixed martial arts matched the once dominant World Wrestling Entertainment Inc. in pay-per-view revenues during 2006 and surpassed boxing-titan HBO. The three companies make up the bulk of the pay-per-view business.
"It was a killer year," UFC president Dana White said.
UFC, a privately held company owned by Zuffa LLC, does not release financial results and White would not discuss them. But an industry executive familiar with the results said the company's 10 pay-per-view events generated more than $200 million in customer retail revenue.
WWE said it had 16 events that generated approximately $200 million in revenue and HBO had 11 events, reporting revenue of $177 million.
Typically, the companies take home about half of hose customer retail revenues with cable companies getting the rest. The cost of the fights vary. People paid $39.95 to see UFC fighters pummel each other while WWE's brawls ranged between $34.95 to $49.95. HBO's most expensive events cost $49.95.
The performance marks a significant turnaround for the Las Vegas-based company -- once maligned as nothing more than a money-losing venture that promoted brawlers in a cage. UFC fought back using a television show on Spike TV, getting more states to sanction the fights and drawing huge crowds to the live events.
The strategy has appeared to work in a big way, helping spur more PPV buys -- sales of one event per household -- thanks to the popularity of UFC fighters such as Tito Ortiz and Chuck Liddell. UFC has a major PPV fight Saturday in Columbus, Ohio, where heavyweight champ Tim Sylvia and Randy Couture will slug it out.
"UFC has reinvigorated the pay-per-view category," said Deana Mears, a senior analyst at Kagan Research LLC that tracks the industry.
To spark interest in pay-per-view events, WWE and UFC also air bouts on various networks. WWE's shows -- "SmackDown", "RAW" and "Extreme Championship Wrestling" -- have been the top rated shows on their respective networks. HBO helps promote its fighters on "Boxing After Dark".
One big difference between WWE and UFC is their audience. Thirty-nine percent of WWE's buys came from international viewers. UFC doesn't have a slice of the international arena but intends to grab market share from WWE when it holds its first pay-per-view fight in Manchester, England on April 21. White noted UFC has initiatives in Canada, Mexico and England, where it recently opened an office in London.
Discuss.