Lorenzo Fertitta Talks To Congress.
Two days ago CSPAN 2 showed what I believe was a Congressional Committee meeting on Internet piracy. The particular part I saw had Lorenzo talking about the money that was lost due to internet feeds from UFC 100. He said that they were able to track down over 100 and estimated that $8 million in sales were lost just from the feeds they found. I found three things interesting about this:
1. Lorenzo being the one talking to Congress instead of Dana White.
2. How much bigger could that one ppv have been?
3. How frequently are internet streams used?
Did anyone happen to catch this?
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Firefly...
FTW!
I specializes in grammar fail.
by a tommy point on Dec 23, 2009 9:20 PM EST up reply actions
Joke right
The only people I ever hear about pirating PPVs or any sports content are on the these boards and I’d say that’s a handful of people. Every business losses revenue to stealing, I’m betting the UFC losses 2-5% which is typical of almost any large consumer based business.
Now, I would never say that I watch MMA events illegally in any way, shape, or form. But I wouldn’t say that I haven’t done it hundreds of times either. I will admit that I’m very savvy with such things and a few points to give those that aren’t
- There are two main forms of piracy that the UFC has to worry about. Bit Torrents (a method of downloading/uploading between many many computers at once sharing files, in a nuthsell) and Streaming (Which is basically the video being played on a website)
- Fertitta reported that Zuffa found 271 streams, with 140,000 people watching UFC 106 illegally. (Which is definitely not every stream, only what they found). UFC 106 had 350,000 buys, meaning that the Zuffa CAUGHT nearly one person illegally streaming for every 2 people who purchased the PPV.
http://www.mmafighting.com/2009/12/16/lorenzo-fertitta-140-000-people-viewed-ufc-106-illegally/
- A week out from UFC 107, and still 13,000 people not only have the video but are allowing people to upload it from them on of many bit torrent sites, out of hundreds. Take note- most people delete the file after watching it, and many more don’t allow people to upload from them. The highest numbers are usually within 24-48 hours after the fight. I’ve seen some with over 50,000 people having the file at one time.
In my not-so-expert estimate (cuz a true number could never be found, there is probably a minimum of a quarter million illegal views each UFC event. We’re talking at the very least 1 person illegally watching for every 2 buying.
Even a broken clock is right two times a day.
but before you think im saying they are losing 33% of their business, i must point out that
A. a loooooot of views come from people in bars and such
B. Most people who illegally watch wouldn’t pay for the PPV, but instead not watch the fights period, or go to a bar (and public places pay for the PPV based on their max occupancy, not actually who shows up- and therefore wouldn’t change the UFC’s profit line whether they download or go to a bar. at least short term)
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 12:44 AM EST up reply actions
1. Lorenzo being the one talking to Congress instead of Dana White.
To put it nicely, Lorenzo is much more professional than Dana. You don’t want DW up there dropping the F word every other sentence.
The only thing Jon Jones does better than Matt Hamill is hear.
(And smash faces)
by ufc4 on Dec 19, 2009 12:46 AM EST reply actions 2 recs
Dana is for the 18-whatever it is male demo.
Lorenzo is for adults :-D
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 1:10 AM EST up reply actions
I was just surprised because it showed that the issue was being taken serious enough that they sent Lorenzo. I wonder if the committee invited him or if they just requested someone from UFC to come talk. If he personally was invited, that means that the committee took some time to learn who was really in charge of the company.
by davidhamilton83 on Dec 19, 2009 11:20 AM EST up reply actions
historically, Dana has been more media oriented where Lorenzo has been more government oriented, while sometimes one slips into the other’s realm. Dana is much more charismatic and can sell tickets and such better. But Lorenzo is much better articulated, and professional- which is much better for a political situation
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 8:08 PM EST up reply actions
Do not mess with the internet, Lorenzo
I repeat: Do not mess with the internet. It cannot be stopped. It will always find a way. Just walk away and let it be in its current state.
Everyone in the music industry thought they were all cute and awesome when they shut down Napster and Co. Well, now look at things. There’s this unstoppable bittorrent monster that will eat your face if you try to mess with it. Don’t force the internet to find a new way. It will hurt more later.
Old people will never learn.
I specializes in grammar fail.
by a tommy point on Dec 19, 2009 3:17 AM EST reply actions 8 recs
Valid Point
Historically, each legal shut-down on a way of illegal downloads was a catalyst to making newer, better ways of getting media for free. Every single time.
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 4:34 AM EST up reply actions
AT&T tried to block 4chan. Guess who won that...
Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better. -Samuel Beckett
by Scott C. Broussard on Dec 19, 2009 3:41 PM EST up reply actions
comcast tried to lower bandwidth capabilities for bit torrents, guess who won?
The internet on two levels. 1. legally won in court that they cant do that (bless net neutrality!) and 2. new technology enabling blocking of your IP was invented, furthering the ability for illegal downloads without reprecussion. Thanks comcast!
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 8:09 PM EST up reply actions
The /b/tards?
The only thing Jon Jones does better than Matt Hamill is hear.
(And smash faces)
by ufc4 on Dec 19, 2009 9:21 PM EST via mobile up reply actions
Victory in less than 24h
They somehow got the CEO of AT&T’s cell phone number and published it in Encyclopedia Dramatica, along with the Board, the CFO, et al. It wasn’t pretty.
Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better. -Samuel Beckett
by Scott C. Broussard on Dec 21, 2009 2:17 AM EST up reply actions
My absolute favorite was when they
attacked that graphical social network in the form of a hotel that catered to tweens. There were all kinds of different rooms, each person had their own room number to hang out in, there was a lobby, a parking lot (I think), a pool, etc..
They essentially blocked off the pool, which was the prime hangout spot, and made a sign indicating it was closed due to AIDS in the pool.
They’re like mini-internet terrorists.
There is no such thing as innocence, only degrees of guilt.
Chris Hansen?
"Someone is WRONG on the internet. What do you want me to do? LEAVE? Then they'll keep being wrong!"
-Randall Munroe
I may not pay for every event I watch, but I do buy all the IMPORTANT ppv’s. Put ‘lesser’ fights on free TV, sell more advertising, make more money. Problem solved.
"Negative, negative. I gotta stay lean and lightning and ready to fight." Capt. H.M. Murdock
Wow, you make it all sound so easy, you should start your own promotion.
The only thing Jon Jones does better than Matt Hamill is hear.
(And smash faces)
by ufc4 on Dec 19, 2009 12:45 PM EST via mobile up reply actions
This is the internet. I’m also an astronaut.
"Negative, negative. I gotta stay lean and lightning and ready to fight." Capt. H.M. Murdock
by BadB on Dec 19, 2009 1:07 PM EST up reply actions 2 recs
its hard to make the kind of money on TV that they do with PPV right now. A 500,000 PPV buyrate ($22 million in buys not counting bars, which probably doubles it) is astronomically more than any network deal would give them for 5 million people watching. Really, their TV deals have all been targeted towards selling more PPV’s.
I can only hope that they get a network deal, which makes them far less than a PPV per event, but gets their casual fanbase SO high that their PPV remains the same but their network views rises astronomically, leaving them to make just as much on free tv as ppv and shifting the business model 100% to that of standard sports, which inables longevity and makes nobody care bout pirating of free broadcasts
Even a broken clock is right two times a day.
by Chris Toffer on Dec 19, 2009 8:12 PM EST up reply actions
UFC Testimony Before House Judicial Committee
I work for the Congress and am also a huge MMA fan, so, I’m perhaps the only dweeb here to actually watch all two hours of the Judicial Committee hearing on Internet Piracy. I think Mr. Fertitta did a fantastic job during the hearing; it would have been a joke if the UFC didn’t have any representation since they own the largest share of the ppv revenue generated by that market.
Justin.tv seemed to be the black sheep on the panel since it represented one of the largest platforms for live event streaming. Watching its legal counsel defend the business model while having to sit next to reps from the UFC, MLB and ESPN was very uncomfortable. However, his rebutals were well crafted and it appears that any efforts at loss prevention by ppv promoters will inevitably be in vein. Fertitta also noted that PPVs only represent 50% of UFC’s revenue. This was a little surprising. Would have thought that it was more. The question begs, what are the other streams?
by wrathofreason on Dec 19, 2009 9:54 PM EST reply actions 3 recs
Just guessing...
Advertising/Sponsership deals. Live gates. Possible revenue from TV deals. Merch.
Associate Writer - WindyCityGridiron.com
by Jacob Hayes on Dec 19, 2009 10:31 PM EST up reply actions
That bout covers it.
Even a broken clock is right two times a day.
by Chris Toffer on Dec 20, 2009 2:47 AM EST up reply actions
I’m gonna rec for wrathofreason’s reply alone. good stuff
Even a broken clock is right two times a day.
by Chris Toffer on Dec 20, 2009 2:47 AM EST up reply actions
The real question is...
Would the pirates buy the UFC 100 show if they had no internet to pirate it with? From my understaing, pirates steal becuase they have no money, if they had money they would have bought the PPV like honest people. And some people dont want to spend $50 on a mma event that they might not like. They would rather pirate it and see if they like it and if they did, buy the dvd later.
for all intents and purposes, just consider all my posts as works of satire.
no internet = MMA wouldnt exist in the magnificent form it's in today.
"Like a ballet of violence clothed in fine Brazilian silk." ~ MMASuPreMaCy
DANA WHITE TALKING TO CONGRESS BAHAHA!
It would go something like…. “motherfuckers are stealing my fuckin money bro…… ok? and you’se guys gotta fuckin call it unconstitutional or some shit and i’ll intruduce you to arianny. If you don’t i’ll fuckin take you fuckers down, look at what i fuckin did to trump.”
Some kick ass analysis in this thread.
+1 BE.
"Like a ballet of violence clothed in fine Brazilian silk." ~ MMASuPreMaCy
thank you
and agreed. i rec’d for the commentqry, not the initil post. its almost as if we should make a new post with all the new info…but im fat and lasy
Even a broken clock is right two times a day.
by Chris Toffer on Dec 22, 2009 11:54 PM EST up reply actions
Feh.
More often than not, if I couldn’t find a stream, I’d go to the bar and watch for free.
I dare say most stream-users are kids who don’t have $50 to watch and can’t get into bars showing the event.
There’s very little money lost in streaming. If anything, streams allow people to remain fans when their lack of means would otherwise keep them away.
http://www.vancouversun.com/mma

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