Canelo and Mayweather Could Signal the End of PPV, Streaming Poised to Take Over
By: William Holmes
“I don’t fight for legacy. I don’t fight for none of that, I fight for that check. I’m in the check cashing business.”
-Floyd Mayweather Jr.
Boxing isn’t just a martial art, it’s also entertainment. Floyd Mayweather was wise enough early on in his career to understand that having a public persona sells, and when you’re a fighter it’s best to minimize the physical damage while maximizing your earnings.
He has professed that his career is over, and it’s hard to argue against the proposition that he has been boxing’s most profitable star.
Entertainment value is not the only key to a pay per view’s success, nationalistic pride can also be a driving force in PPV sales.
Manny Pacquiao was a pay per view force in part because of it. Today, the Mexican pride for Canelo Alvarez leads many to express their patriotism with their wallet.
But the long term stability of PPV fights is at risk with the rise of streaming platforms.
New outlets like DAZN and ESPN+ now offer a reasonable financial alternative for fight fans. PPV’s were costing anywhere between $60 and $100 for the opportunity to watch one fight. $60 will get you half a year subscription with DAZN. DAZN promises to have 32 US and UK Matchroom Boxing Events and 15 World Boxing Super Series Events for the year.
ESPN+ has a partnership with Top Rank Promotions and will broadcast 54 live boxing events annually. ESPN + is available for only $5 a month.
The value for fight fans is with the streaming services, and a fight fan that’s spending $15 a month for both DAZN and ESPN+ will be less inclined to shell out another $60 or more for a ppv.
The expansion of heavily invested streaming services combined with boxing’s lack of marketable stars to the wide casual sport fan, spells the beginning of the end for pay per view.
The past two years have been particularly troubling for the boxing pay per view business. The rematch between Golovkin and Canelo is the only notable boxing pay per view fight of 2018. In 2017, Canelo’s fights with Golovkin and Chavez Jr. did well on pay per view, as well as Floyd Mayweather Jr.’s one off showcase with Conor McGregor, but outside of these two Boxing PPV has floundered.
Andre Ward rematched Sergei Kovalev on HBO Pay Per View, but by all accounts that fight underperformed and only sold 125,000 pay per views.
The money for boxing is still present for promoters and boxers alike to take advantage of, even with the decrease in PPV events. The contract DAZN has with Matchroom is worth a reported $1 Billion dollars over eight years (125 million a year) and while the official financials that Top Rank has signed with ESPN hasn’t been reported, it is for seven years and was lucrative enough to lure Top Rank away from their long time partners at HBO, and to resign one of their top stars, Terrance Crawford, to a recent contract extension.
The rise of streaming will present many problems for the Pay Per View model. The obvious one is the value that streaming provides. Fight fans will be able to get high quality fights, and a large number of them, for a substantially cheaper price than PPV.
Additionally, streaming services like DAZN and ESPN+ provide access to other events besides boxing. DAZN has locked into an agreement with Bellator MMA and provides other sport offerings, and ESPN has an agreement in place with the UFC as well as other professional and collegiate sport leagues.
The CEO of DAZN, James Rushton, believes DAZN will be a big disruptor in the industry and he believes DAZN will help change the game of Sports Broadcasting. He recently stated, “We are the world’s first truly dedicated, which stand alone, OTT live sport streaming business. We focused on what that means, is providing fans with unlimited access to some of the best premium sports content available, for one affordable monthly fee. No contracts, no bundles, all that stuff that people don’t like with traditional network television. We are live in five markets right now, and we are launching here in the US later on this summer, we are super excited. We are looking to disrupt and change the game of sport broadcasting starting off with fight sports with our partnership with Matchroom Boxing US and Scott and his team at Bellator. We’re looking forward to our first event going live on the 29th of this September with Bellator.”
The introduction of ESPN+ and DAZN into the boxing viewership marketplace will also force each to be competitive and put on high quality fights. Under the PPV model, boxing broadcast mainstays like HBO and Showtime would showcase their best fighters against boxers that would basically be considered “enhancement” talent, in order to build their popularity for the almighty goal of PPV.
With streaming, DAZN and ESPN+ will have to put on high quality competitive fights to draw the consumer away from the traditional televised boxing model to the new streaming boxing model. Tune-up fights won’t attract paying customers.
Mayweather’s last hurrah was likely against McGregor. If he chooses to come back, he will undoubtably remain a PPV attraction. But as of now, he’s officially retired.
Canelo is still in his athletic prime and has many productive and profitable years ahead of him. A loss to Golovkin will hurt his financial drawing power, but he still has that passionate and loyal Mexican base and will still be a bigger draw than most in the sport.
But outside of Canelo and Mayweather the PPV pickings are slim, and for fight fans and their wallets, that’s probably a good thing.
Is PPV Dead? Not yet, and PPV will likely remain an option for promoters who want to cross promote. But it’s on wobbly legs, and the streaming platforms look fresh and ready to go.