Who's the main attraction? Star power as a determinant of Ultimate Fighting Championship pay-per-view demand

ABSTRACT

Research Question: In recent years, global mixed martial arts organization Ultimate Fighting Championship (UFC) has experienced ups and downs with respect to North American pay-per-view (PPV) sales. A prevailing belief suggests the volatility of demand for the league's primary revenue stream is largely attributable to the organizational presence and loss of star fighters. Extant research indicates that star athletes are those individuals who display both great skills and are popular in the media. With respect to the primary two facets of star power and the growth of UFC, the purpose of this research was to quantitatively operationalize the variable and assess its influence utilizing a longitudinal, comprehensive data set.

RQ: What impact does star power have on UFC PPV demand?

Methods: The sampling frame consists of 102 observations, UFC numbered events 72–183 (2007–2015). A generalized linear model using maximum likelihood estimation was developed to examine the impact of star power on PPV demand, controlling for other factors deemed relevant from previous literature.

Results and Findings: Results indicate that UFC star fighter performance in the ring significantly impacts demand, while star popularity was less of a contributor. Demand was most influenced by PPV cards featuring the league's highest ranked fighters and champions (current and former), and less by fighters' presence in traditional and social media outlets. Consumer preference for champions exists regardless of fighter weight class.

Implications: These findings extend the literature on UFC PPV demand through a more comprehensive understanding of the role of star fighters. Based on these findings, league organizers should be certain to include at least one championship title match on each PPV card, and supplement those cards with additional current and former champions, and high ranking fighters (i.e. title elimination matches). Fighters should be encouraged to build their respective brands via social media outlets while the league can support these efforts by arranging for them to be exposed to new audiences in traditional media outlets (e.g. network television shows etc.).

KEYWORDS:

• Athlete star power
• consumer demand
• pay-per-view
• Ultimate Fighting Championship
• combat sports

Disclosure statement

No potential conflict of interest was reported by the authors.