Although the UFC would want nothing more than to sell more than 1 million pay-per-view buys per event, I believe it is close to impossible with their current sales model. First of all, their revenue is based on single-transaction purchases made from events they schedule on a specific calendar date. For example, if a casual mixed martial arts fan saw that his favorite fighter is fighting on an upcoming UFC card, he only needs to purchase that one event and is not pressured to buy the next upcoming event. As I have explained in my previous blog post, this pay-per-view model does not work in most countries all over the world, which limits the UFC's profit margins.
The World Wrestling Entertainment (WWE) is a sports entertainment organization that also used to run on a pay-per-view model. However in 2011 they introduced a subscription-based video streaming service which includes every programming they offer. This move was a success, as they now have over 2 million subscribers that pay on a monthly basis. Guaranteed revenue is what the UFC needs, and if they follow the WWE model I believe they can real a broader target market.
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| The WWE Network lets you watch all WWE content for one flat monthly rate. |
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