Initially this is what a user gets:
- feature the entire Zuffa library (all of the past UFC, Pride, Strikeforce, WEC, WFA fights).
- 12 or more international fight nights live. (singapore card, gustaffson vs manuwa, etc...) - These cards may also air on fs1/fs2 via tape delay.
- some original behind the scenes shoulder programing.
- everything you currently get on ufc.tv (post and pre fight press conferences, weigh ins, q and a's, special angles, audio feeds etc...)
you'll be able to stream this network on your computers, tablets, phones and through internet ready devices like Roku, gaming consoles, etc... on your TV.
A very limited version of this is UFC select (limited library of fights) and that's priced at 5.99 a month.
This network has to be priced right because eventually if you also include live fs1, fs2 and fox fights/content and even ppv's then it's going to be very difficult to raise the subscription price... you'll have alot of drop off in a subscription service if you force people to re-enter payment information.
The lowest price for a subscription service should be 7.99. that seems to be the threshold for minimum attrition... people cant seem to take the time to cancel a service if it costs less than 8 bucks per month... the vast majority just stick around even though they stop using it.
so that's the low end. Unfortunately the economics may not work at that price. netflix can do 7.99 because they have such a bigger universe to play with.... they make up for it in volume. The universe of consumers for UFC content is more limited so you have to make up for that with a higher price.
if you take the highest buy rate for a UFC ppv, that means you have around 1.5million potential buyers. You need to take that and all the content that will eventually be delivered through the network into consideration to come up with the right price.
Zuffa has digital rights so even though the content on fs1, fs2, and fox may not be on the network now it eventually will (unless fox buys the digital rights in which case the online network would go away or be absorbed into fox's portfolio).
a potential of 1.5m (american) buyers and the amount of content potentially being delivered gives me a price of around 14.95 per month. That would be around 270m a year in potential revenue that could replace fox and ppv (not counting the in content ads and sponsorships Zuffa can sell on the network).
I believe the UFC network should be priced at 14.95 per month with a one month free trial.
What do you think the price will be and what do you think the price should be?