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New insights on the Louis-Schmeling paradox: determinants of demand for subscription and pay-per-view boxing
European Sport Management Quarterly ( IF 3.6 ) Pub Date : 2020-10-06 , DOI: 10.1080/16184742.2020.1820063
David Butler 1 , Robert Butler 1 , Joel Maxcy 2
Affiliation  

ABSTRACT

Research question

Studies considering demand for professional boxing are almost completely absent from the Sport Management/Sports Economics literature. Little is known about consumer preferences for a sport which attracts global attention but is unique insofar as it is exempt from standard sporting institutions maintaining competitive balance. We use two new datasets to ask, what are the determinants of main event viewership (Nielsen ratings) and pay-per-views buys? In addressing this question we offer new insights on the uncertainty-of-outcome hypothesis and extend research on direct demand for individual sport.

Research methods

The datasets comprise of 210 HBO and Showtime broadcasts from 2006 to 2018. We estimate generalised linear models, controlling for economic determinants, bout features, boxer popularity and scheduling factors.

Results and Findings

For main events, we find conflicting evidence to the uncertainty-of-outcome hypothesis. Fans show a preference for rematches, domestic boxers and heavier divisions. NFL broadcasts and earlier scheduling negatively impact viewership. For pay-per-views, we find a positive price effect. Expectedly, Floyd Mayweather Jr increases buys. Both categories exhibit a negative trend with viewership and PPV buys declining over the sampling frame.

Implications

The results offer new evidence that is contrary to the uncertainty-of-outcome hypothesis for an individual sport. The findings point to differences in consumer preferences between two sources of demand for the same sport. Practically, these can inform the strategic decision-making of broadcasters, promoters, advertisers and potential new broadcasting entrants.



中文翻译:

关于 Louis-Schmeling 悖论的新见解:订阅和按次付费拳击需求的决定因素

摘要

研究问题

体育管理/体育经济学文献中几乎完全没有考虑到职业拳击需求的研究。对于消费者对一项吸引全球关注的运动的偏好知之甚少,但它是独一无二的,因为它不受标准体育机构的影响,保持竞争平衡。我们使用两个新数据集来询问,主要活动收视率(尼尔森收视率)和按次付费购买的决定因素是什么?在解决这个问题时,我们提供了关于结果不确定性假设的新见解,并扩展了对个人运动的直接需求的研究。

研究方法

数据集包括2006 年至 2018 年的 210 个HBOShowtime广播。我们估计广义线性模型,控制经济决定因素、回合特征、拳击手受欢迎程度和调度因素。

结果和发现

对于主要事件,我们发现结果不确定性假设的相互矛盾的证据。球迷表现出对复赛、国内拳击手和更重的分区的偏好。NFL 广播和更早的安排会对收视率产生负面影响。对于按次付费,我们发现了积极的价格效应。预计,小弗洛伊德梅威瑟会增加购买量。这两个类别都呈现出负面趋势,收视率和 PPV 购买量在抽样范围内下降。

影响

结果提供了新的证据,这与单个运动的结果不确定性假设相反。调查结果表明,消费者对同一运动的两种需求来源之间的偏好存在差异。实际上,这些可以为广播公司、发起人、广告商和潜在的广播新进入者的战略决策提供信息。

更新日期:2020-10-06
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