Friday, January 8, 2010

PPV Sales Revenue is Forecast to be down about 16% in 2009

HA Note: "Overall sales revenue from the pay-per-view showing of University of Hawai'i sports in 2009 is forecast to come in about 16 percent below 2008, the school said yesterday. Because of the way the contract is structured, however, UH said it expects its share of the proceeds to drop only about 4 percent. Based upon unaudited returns, UH said it projects the pay-per-view package to produce approximately $3.4 million in sales, down from just under $4.1 million in 2008. Sales of the season ticket package of nearly 20 events dropped nearly 12 percent from 8,318 in 2008 to 7,347 in 2009, UH said. The school's share of revenues was $2.6 million in 2008 and is projected to be about $2.5 million for 2009."

JD said that UH's share of the revenue will be down $100k despite PPV revenue down $700k:
"because when we renegotiated the contract two years ago we wanted to protect UH athletics in down years." (HA)


About how PPV prices have increased each year since it started in 2002, JD was asked if a ceiling has been reached and said:
"We'll always take look, along with our partners, at the pricing each year. But in general terms right now we have to be very careful on any prices increases." (HA)

http://sports.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20100108/SPORTS02/1080370&template=UHsports

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