UFC Fight Pass launched last week. The $10/mo streaming subscription service allows UFC fans from a few countries to watch live international events and currently grants limited access to the UFC's library of past events and television programs (including international iterations of The Ultimate Fighter that are currently not available state-side). The UFC has suggested they will upload their entire fight library of over 3,000 bouts from the UFC, PRIDE, Strikeforce, the WEC, Affliction, and the WFA, but the current (launch) library is limited. Users of UFC.tv might have an idea of what the current service provides. Searches bring up scatter-shot results and so far the ability to watch past events front-to-back as they were is not possible. The UFC does not offer Fight Pass on mobile platforms nor on streaming devices such as Roku, Xbox, or Apple TV. The UFC will continue to put on 13-16 PPV events per year at $50 each and those are not part of the subscription package. Enter WWE's new subscription service launching next month. Granted it's not like-for-like but it is very similar and reaches a similar target audience at the same price point. The WWE Network will also offer their back catalogue of events from their own history and from the dozens of promotions they've bought up over the last half-century, promising up to 100,000+ hours of content. The only archival footage the WWE won't share is from videotapes that are too degraded to digitize. WWE Network will be available on mobile devices and streaming services though there is some suggestion that Apple won't be among them. The kicker is that the WWE is exiting the PPV market and will offer up their monthly PPV's on their subscription channel for no extra fee. If a new subscriber signs up for a six-month commitment they will be allowed to watch Wrestlemania as well which has a premium price otherwise. In 2012, the UFC did 13 PPV events and about 5.7-million total buys according to Dave Meltzer (a number they aren't expected to come close to matching for 2013). The WWE did 12 PPV's that same year and 4-million total buys. 5.7-million x 50 = 285m gross 4-million x 45 = 180m gross The gross numbers for PPV don't include the PPV provider's exorbitant cut which is 50%. According to some experts the UFC nets about $20 for a PPV buy with the WWE making slightly less based on their lower price point. 5.7-million x 20 = 114m 4-million x 17.5 = 70m The WWE's strategy to recoup their PPV losses is by having more volume. $70-million translates to about 600,000 subscribers. Subscriptions they sell above that are gravy. It's not that they don't have overhead but the WWE is it's own entertainment empire and has built-in infrastructure so continuing to pay 50% to the various PPV suppliers is something they can do without. The UFC would need more subscribers to recoup their PPV losses if they followed suit, likely in the 1.5-million range. The fact that UFC 168 reportedly sold 1.1-million buys suggests that they can reach or exceed that number especially at 1/6th the price. The bottom line is, currently, the WWE charges $120/year for their entertainment not including cable or internet fees while the UFC charges $820.
