Recent streaming agreements could pave the way for two big brands to re-enter the pay-per-view arena.
In recent times, sports fans primarily forked over money for pay-per-view events related to boxing, mixed martial arts, and professional wrestling.
The latter two fan bases have felt quite frustrated, as they used to pay a single fee to access shows, but now find themselves stuck behind subscription paywalls.
Rope the Dope
When the UFC signed a deal with ESPN in 2019, they shifted away from traditional pay-per-view. Instead, events were made available only through ESPN+, requiring additional subscription costs. So, viewers effectively had to pay just to pay for an event, which was understandably irritating.
On the other hand, WWE, which is owned by TKO Holdings along with UFC, has previously aired premium events on Comcast’s Peacock without extra charges.
Recently, TKO Holdings may have taken steps to change this model for good.
Under the new rights agreement, UFC is likely to do away with the pay-per-view structure. This change might make viewing feel more like conventional television.
Down for Counting
Last week, TKO announced a new deal with ESPN, moving WWE’s major live events to networks owned by Disney. Essentially, WWE shows will be available simultaneously on the ESPN app and on TV.
As for the UFC, they’ve transitioned from ESPN to Paramount, which secured the UFC event rights for $7.7 billion over seven years. All major UFC events and “Fight Nights” will be accessible on the Paramount+ app without additional fees for subscribers.
Fight Club
This evolution leaves us with two giant brands. Instead of relying on the pay-per-view model, some of the biggest wrestling events during the year will be featured on ESPN’s cable networks.
“The pay-per-view model is a relic,” remarked TKO Group’s president Mark Shapiro. “Are you still using pay-per-view? It’s become outdated,” he expressed to CNBC.
He continued, “When fans think, if I subscribe to Paramount+ for $12.99, will I automatically get UFC numbered fights? That’s the message we want to share.”
For the time being, subscription services appear to be the future. However, it seems there’s the potential for premium content to be accessible for free on various screens, even on a living room TV.
