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NEW MODELS AND REVENUE STREAMS There is no precedent for an online fight business network. The potential for new revenue models and revenue streams are numerous. The prices and percentages of markets that we use below are necessarily educated guesses. Unfortunately, our access to significant data is limited by Nevada statute NRS 467.137 which prohibits the public disclosure of financial information between fight promoters and television. Annual television revenue (cable and pay-per-view) is likely to be at least several hundred million dollars annually worldwide. Fighters Online's model is a vertically integrated fight business network offering (1) self-matchmaking to the fighters and their agents or managers, which creates (2) a flow of made fight content to an online fight auction selling a great variety of fights to promoters and venues for showing on (3) a digital fight channel devoted to showing their fights to fans in different time zones all over the world. We believe this to be potentially a very big business and a very profitable model, with many options for revenue, including subscriptions, transaction fees, pay per view fees, and advertising. Revenue Option 1: A Tiered Subscription Model Tier 1 - Free Services. To attract the most fighters, industry professionals and fans, Fighters Online will offer much of its basic information for free, including basic (simplified) access to our database of fighters and their records, information on current challenges, fighter profile pages, and all social networking tools. In the internet age it is very hard to be a gatekeeper of this kind of information, because so much is already freely available. Offering information for free is also a proven way to grow a customer base. Since videos from the Fight Channel will be part of each fighter's Fighter Page, it is likely that our free services will include some basic quality video as a way of enticing subscribers to our paid Tier 2 video offering. Tier 2 - Premium Services (Online Fight Channel). The main Premium Service will be the full Fighters Online Digital Fight Channel. Subscribers will automatically be shown higher quality video wherever it appears in the system, such as on the Fighter Pages, and have access to our entire video library. Live broadcast of fights, in partnership with promoters, could either be included in Premium Services or charged separately as Pay-Per-View (see below). Premium Services could also include some specialized software tailored to hardcore fans who do not need the rest of the Tier 3 Professional Services package. Since fans are already used to paying for video via cable and Pay-Per-View, it is reasonable to charge a small monthly fee for this high-quality video service. Revenue Sharing: For viewing of past fights, our Fight Channel revenue model will include two ways of sharing revenue with fighters: 1) by paying residuals to fighters on a per view basis, and 2) by donating a percentage of fan subscription revenue to a Professional Fighters Association, a tax-exempt foundation organized under IRS Sec. 501(c)(3) that will administer unprecedented retirement fund and insurance benefits. Because this model is beneficial to them, the incentive for free agent fighters to pressure promoters to use the Fighters Online Fight Channel to promote their fights will be strong. Fighters will have incentive to put on entertaining fights to win more online views. In addition to benefiting fighters, there will be excellent public relations value with fans who will know the fighters are getting residuals when they use our site. While free video services like YouTube will always be our competition on the low end, and cable on the high end, revenue sharing will be one way to ensure that we get exclusive broadcast of the best quality fights. According to a Bleacher Report, UFC programs are broadcast to 430 million homes worldwide in 147 countries and territories, in 19 different languages. They produce 30 live events in stadiums and arenas around the world. According to Satellite TV Market News, there are 500 million broadband subscribers worldwide, One in every five of the world's households now has a broadband connection. This is a truly astonishing figure and one that reinforces the great opportunities the Internet presents for the broadcasting industry. This was revealed at the Broadband Forum's quarterly meeting in Hong Kong, where this very rosy picture for global IPTV was disclosed. The Fighters Online Fight Channel proposed would have an estimated fight fan subscriber universe of 15% of a conservative total subscriber universe of 200 million homes. A monthly $4.95 premiere Fight Channel subscription fee applied to 15% of the market who are avid fight fans (30 million) will result in an annual gross of $1,782,000,000. Tier 3 - Professional Services. Unless we decide to use transaction fees only (the eBay model, see below) we may choose to offer subscriptions to the matchmaking and fight auctioning features of the website. This service will be used exclusively by fighters and industry professionals -- trainers, managers, advisors, attorneys, booking agents, matchmakers, promoters, venues, and television fight producers. This is our unique, patented service, and as a valuable business tool it is reasonable to charge a subscription fee for it. As part of a Professional Services package, we will offer access to all of our data sorting features and research and analysis tools, to help fight professionals use the matchmaking and auctioning services effectively. Fighters Online will use Web 2.0 technologies to create a software like experience in using these services. The estimated universe is 50,000 subscribers worldwide, 10,000 in the U. S. The subscription rate might be $19.95 per month. Realizing 75% of world market over a three year period will result in an annual gross of $16,458,750. Revenue Option 2: Transaction Fees Fighters Online could charge transaction fees from promoters, venues or Pay-Per-View and cable television companies who purchase fixed-price fights or win fight auctions via the Fighters Online system.This is the already accepted and proven eBay model. Revenue Option 3: Digital FIght Channel Pay-Per-View Fees When promoters and venue managers broadcast fights live on the Fighters Online Fight Channel, Fighters Online could follow the established pay-per-view model of the cable companies. While past fights will automatically become part of the Fighters Online video library, integrated into our larger system, live events have a special draw. It may be advantageous to offer these events as Pay-Per-View, separately from the Fighters Online Premium subscription, or it may work better to bundle live viewing with the Premium subscription's normal video access. If Fighters Online offers Pay-Per-View, it will share revenue with the promoter and the fighters, based on the number of viewers. This will add incentive for promoters to use our system, especially for fights that would not be broadcast any other way. With an open, worldwide internet broadcast system providing additional revenue, the number of fights held and broadcast could skyrocket. Many fight markets are underserved, many smaller promoters would like to put on more events, many venues have "dark nights" where the venue is available, and many fans around the world would like to watch more fights live online. Some venues will see the rationale of having their Director of Special Events promote their own shows with Fighters Online as their broadcast partner. Others will look for a fight promoter to work with us. The annual gross income from boxing and MMA shows worldwide is not available, although some information can be found in sports writers' articles which often contain data on gross revenue from live gates, pay-per-view, and televised fights. Never published are the gross revenues from thousands of foreign shows each year and the advertising and sponsorship revenue and sales of concessions, clothing, boxing and MMA equipment, and memorabilia. Revenue Option 4: Advertising This may be very significant in view of the attraction advertisers and sponsors have for the MMA fight demographic of 18 to 35 year old males. The Fighters Online Digital Fight Channel will use country specific targeted foreign advertising and pixel plasticity technology for enhanced signage revenue from fights telecast in foreign countries, and traditional commercials. Home Executive Summary The Fighters Online Free Agency Model Advantages for Fighter and Managers Advantages for Promoters Advantages for Fans Potential for Growth Math Phenomena of Our Matchmaking Creating an Unprecedented All-Heavyweight Series New Models and Revenue Streams A Letter from the President Password Protected Directories Copyright 2011 - All rights reserved |