Sunday, 18 September 2011

HBO Pay-Per-View


In 2006 HBO generated 3,700,000 pay-per-view buys with $177,000,000 in gross sales. The only year with more buys previously, 1999, had a total of 4,000,000. However, the record fell in 2007 when HBO sold 4,800,000 PPV buys with $255,000,000 in sales.
But 1999 differed radically from 2006. 1999 saw De La Hoya-Trinidad (1,400,000 buys), Holyfield-Lewis I (1,200,000), Holyfield-Lewis II (850,000), and De La Hoya-Quartey (570,000). By contrast, only one pay-per-view mega-fight took place in 2006: De La Hoya-Mayorga (925,000 buys). Rahman-Maskaev bombed with under 50,000. The other eight PPV cards last year all fell in the 325,000-450,000 range. Pay-per-view fights in that range almost always generate more money for the promoter and fighters than HBO wants to pay for an HBO World Championship Boxing license-fee.
In May 2007, the super-welterweight boxing match between Oscar De La Hoya and Floyd Mayweather Jr. on HBO PPV became the biggest-selling non-heavyweight title fight, with a little more than 2.5 million buyers. The fight itself generated roughly $134.4 million dollars in domestic PPV revenue, making it the most lucrative prizefight of all time. In December 2007 the Floyd Mayweather vs. Ricky Hatton fight appeared on-track to sell well over 900,000 PPV buys,.
The leading PPV attraction, Oscar De La Hoya, has "sold" approximately 12.8 million units in total, giving $612 million in domestic television receipts.[citation needed] In third place in buys, Evander Holyfield has achieved 12.6 million units ($543 million); and in second, Mike Tyson has reached 12.4 million units ($545 million).
HBO Sports President Ross Greenburg calls the expansion of pay-per-view "the biggest economic issue in boxing" and says:
"I can't tell you that pay-per-view helps the sport because it doesn't. It hurts the sport because it narrows our audience, but it's a fact of life. Every time we try to make an HBO World Championship Boxing fight, we're up against mythical pay-per-view numbers. HBO doesn't make a lot of money from pay-per-view. There's usually a cap on what we can make. But the promoters and fighters insist on pay-per-view because that's where their greatest profits lie."
"It's a big problem," Greenburg continues. "It's getting harder and harder to put fighters like Manny Pacquiao on HBO World Championship Boxing. If Floyd Mayweather beats Oscar, he might never fight on HBO World Championship Boxing again. But if HBO stopped doing pay-per-view, the promoters would simply do it on their own [like Bob Arum did with Cotto-Malignaggi in June 2006] or find someone else who will do it for them."
Former HBO Sports President Seth Abraham concurs, saying, "I think, if Lou (DiBella) and I were still at HBO, we'd be in the same pickle as far as the exodus of fights to pay-per-view is concerned."

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