Combats sports like boxing were once a mainstream of linear TV and pay per view. But fighting leagues, from upstart ones such as the Professional Fighters League to those more established such as the UFC, are increasingly turning to streaming to expand their reach.
After finishing up its first season, the Professional Fighters League turned heads in the industry two weeks ago when it announced a major multiplatform deal to make ESPN and ESPN+ the exclusive media homes of its second and third seasons. The league, which presents MMA through a format familiar to fans of the major U.S. sports—with playoffs and a championship—inked the deal after an inaugural season on NBC Sports that spanned NBCSN, NBCSports.com, and the NBC Sports app.
The PFL-ESPN tie-up is interesting not only because it puts the upstart league on the biggest sports broadcaster’s linear and digital properties, but also because it enables the company to emphasize what it refers to as “cageonomics,” or analytics and live stats that power second screen mobile experiences. The league will use biometric sensors and other “SmartCage” proprietary technology to measure and deliver real-time fighter performance data, such as the speed of punches and kicks, heart rate tracking, and energy exertion. All 10 PFL events will air live across ESPN2, ESPN Deportes and ESPN+, but the direct-to-consumer ESPN+ will have three hours of exclusive action versus just two on the linear ESPN2.
“Our smart cage platform is a big part of the video experience,” said PFL CEO Pete Murray. “The benefits of that data is for the athletes: once we baseline our athletes, we share that data and then our athletes are using that data and preparing for their upcoming fight by increasing their own individual performance and preparing for opponents. And it also makes for a great fan experience.”
This isn’t to say that linear TV is dying. While streaming sites such as ESPN+ and DAZN are emphasizing their combat rights—DAZN’s U.S. launch initially focused on combat sports through deals with Bellator MMA and Matchroom Boxing and a $365 million-plus contract with boxing superstar Canelo Alvarez—there is still significant prestige in landing a traditional broadcast network, given the large scale of linear TV compared with nascent streaming platforms. Rich Greenfield, a media analyst at BTIG Research, said the reality is that “all major sports rights are still sticking with traditional television.”
“I think the question is will we see one of these streaming platforms acquire ‘marquee’ rights?” he said.
Now here’s an accurate breakdown. @Canelo @espn @dazn_usa pic.twitter.com/lXloQSeQxF
— Oscar De La Hoya (@OscarDeLaHoya) March 1, 2019
However, upstart streaming platforms, such as DAZN, are building names for themselves by leveraging exclusive combat sports rights. Upstart combat leagues, such as the PFL and the Jiu-Jitsu league Kasai Grappling, are growing and spreading content through social media and streaming.
“The world is evolving towards more these types of communications: social media, internet platforms. And we’re more and more distancing ourselves from traditional TV, from cable,” said Rolles Gracie, the president of Kasai. Gracie holds a fourth-degree black belt in Brazilian Jiu-Jitsu and comes from a family of BJJ pioneers. “I feel these subscription internet-based platforms, from FloGrappling to DAZN, are the future. And what I like about that is you can expand your reach. Traditional TV might be local, but through the internet you’re reaching the world.”
Kasai Grappling, which puts on premiere Jiu-Jitsu live events, has leveraged social media and the streaming platform FloGrappling to expand its growth over the past year and a half. Since its first event in December 2017, Kasai’s outreach on social media has rocketed nearly 250 percent to more than 30 million social impressions through its November 2018 show. The company is awaiting official data from its most recent event in February but said early looks demonstrate substantial strength in engagement.
Kasai’s events have been streamed around the world, with people tuning in from countries spanning Brazil and Portugal to India, Russia, and China. The in-person attendance at its live events has been growing in tandem, reaching 3,000 at its February show compared with a few hundred when the league was first starting out.
“The advantage of these platforms is that it doesn’t matter if you’re a huge company or a startup,” Gracie said. “They are suited for anyone. And I’m glad we started this way.”
This shift to streaming as a second home for combat has been ongoing for several years, with the trend tracing back to early 2014 with the launch of UFC Fight Pass. HBO Sports specifically pointed to streaming competition when it announced at the end of 2018 that it would stop broadcasting boxing on its premium network after nearly half a century of coverage.
“Boxing has been part of our heritage for decades. During that time, the sport has undergone a transformation. It is now widely available on a host of networks and streaming services,” HBO Sports said in a statement. “There is more boxing than ever being televised and distributed.”
To give some perspective, the PFL reached five million global users during its championship event on New Year’s Eve 2018, with four million of those coming from 130 countries watching on over-the-top platforms like Facebook Watch.
“What that illustrates is that this particular consumer looks for quality content and they’re accustomed to engaging and experimenting with live events via mobile devices and streaming,” Murray said. “We have those avid fans in large part because of over-the-top direct-to-consumer platforms.”
Streaming platforms also enable leagues, such as the PFL, to experiment with innovative ways to tell stories and drive revenues. Fresh off its ESPN deal, the PFL is now exploring new OTT deals in other countries, analyzing opportunities on a country-by-country basis, according to Murray.
“Digital and OTT distribution is a critical and paramount part of our overall strategy,” he said. “In a short time we’ve proven that out and it will continue to propel what we’re doing.”
The league is also now building a more robust second screen experience through cageonomics, which Murray said is preparing the PFL for an eventual move into legalized sports gambling.
“We’ll have a live experience on ESPN 2 and ESPN+, then a second screen experience where we’re tracking all data in real time to complement what’s going on with the televised or streamed event,” said Murray. “This will be invaluable data as we plan our approach to the gambling space.”