The Hidden Benefits of the PPV Model

Dimitar Serafimov | Fri Nov 30 2018 | Industry insights

As OTT expands globally, broadcasters and sports organizations test out many direct-to-consumer options. But, despite the exciting new raft of revenue-making opportunities available to today's OTT players, PPV is still a tried and tested model.

The debut of Golf PPV 

Yes, PPV has its benefits. But, the model itself does not always guarantee success. The whole product and viewer experience must be seamless for it to be a success. And yeah, we live in that complex world of PPV tech. 

Let's take the recent one-on-one golfing ‘death match’ match between legends Tiger Woods and Phil Mickelson, for instance. An event that Turner Sports were offering golf fans the pleasure of viewing this clash of the clubbed titans for a one-off fee of $19.99 through its direct-to-consumer platform, a revolution in the world of sports entertainment was on the cards.

But, in reality, technical difficulties locked paying subscribers out of the viewing experience. Ultimately, the company had to refund everyone and stream the event for free and the losses were projected around $10 million.

The power to lure new subscribers

Was it all bad news for the PPV industry? Not really. 

Essentially,  PPV brings lots of "hidden" benefits for the organizers. It was proved that it attracts young audiences with its new value proposition. The model is by its very nature, innovative, causing disruption and will ultimately get media entities on board in their masses. And, it can be used as a great tool to bring viewers or subscribers to legacy services. And PPV events content, particularly in the golfing world, is only just getting started…

Tiger Woods has recently signed an exclusive deal to develop fresh programming for emerging golf streaming service, Discovery Inc. And as the PGA Tour winds up launching, luring in new subscribers seems inevitable.

The world-renowned golfer has signed a multiyear agreement to create a host of programming features and content on GolfTV, both live and on-demand for streaming service Discovery and the tour plans to launch in January 2019.

Are these "experiments" worth the effort?

Tech companies are getting more involved in sports broadcasting, for a reason.  For media brands to succeed online, they have to be backed by great streaming, subscriber management, and payment technologies.

The growth numbers for the sports industry are on the rise, and there is a big stake up for the grabs. As you can see from the chart below, this trend is expected to expand throughout the sporting sector:

With Tiger Woods' golfing content initiatives about to tee off in the New Year and the growth of sporting content as clear as glass, in 2019, there is one burning question on all of our lips: will more sports explore the untapped benefits and opportunities of PPV, and who will emerge victoriously?


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