The Barter Model
Instead of paying the promoter for the right to air the program, a local network affiliate, multicast network, or an independent television station gives the promoter 6 to 7 minutes of advertising time. While the station sells 6 to 7 minutes of advertising time to local market businesses, the promotion monetizes its advertising time by securing national sponsors (direct-to-consumer brands or products available nationwide). The promotion can also use that time to advertise upcoming events, merchandise, archives on a direct-to-consumer sports streaming platform, etc.
[Case Study] NWA POWERRR on COMET
An example pro-wrestling promotion for this model is the NWA and its weekly program, POWERRR. While continuing to show that territories still matter today, the NWA has expanded its footprint via COMET, a national multicast network owned and operated by Sinclair Broadcast Group. COMET uses the syndicated over-the-air model to reach approximately 82% of U.S. television households on local broadcast channels (it can be picked up in high definition for free using an HD OTA antenna). Sinclair utilizes a barter arrangement with the NWA to fill a one-hour Saturday afternoon slot with established content so that they can attract a large audience (NWA POWERRR attracts a viewership of 275,000) and sell its national ad inventory to major advertisers at high rates.
The transaction between the NWA and COMET is that commercial advertising time within the broadcast hour is split between them. Sinclair utilizes its portion of the advertising inventory to run standard brand commercials and product-sales ads, generating immediate revenue for the network. Sinclair gives the NWA 6 to 7 minutes of commercial time per episode of NWA POWERRR, which it uses to secure direct-to-consumer sponsorships, such as CashNetUSA.
In addition, the NWA utilizes its airtime as a marketing vehicle to drive television viewers toward live event gate attendance by advertising upcoming events. Thanks to their barter agreement with COMET, the NWA is able to eliminate monthly overhead risk ($0 in direct airtime fees) and protect its cash flow while simultaneously expanding its brand visibility nationwide.
The Time-Buy (Paid Programming) Model
In a time-buy arrangement, a promotion purchases a specific block of airtime directly from the broadcaster. The promotion accepts 100% of the production and airtime costs (e.g., $500 to $2,000 per month depending on market size and time slot), and gets about 85% commercial advertising inventory within that hour (roughly 10 to 12 minutes) to sell to local sponsors. To offset what they are going to spend in order to get a guaranteed time slot and the exposure that comes with it, the promoter should look into getting sponsorships, so that the brand can continue to grow. The primary benefit is a guaranteed time slot that the promoter gets to choose- time-buy slots most commonly are late night and early morning. If they are having difficulty getting sponsorships, they should use their advertising inventory to advertise upcoming events, merchandise, archives on a direct-to-consumer sports streaming platform, etc., so that the monthly airtime bill doesn't become a drain on their operating budget.
No matter which option a pro-wrestling promotion chooses, it can be further capitalized on. If a promoter prefers a barter arrangement, in addition to having a traditional broadcast television deal, they could also join a FAST (free ad-supported streaming television) platform. These live TV streaming services are delivered over the internet via PC, connected TV (CTV) apps, or smart TV interfaces, entirely free- users do not have to pay a subscription fee, sign a contract, or need a login; the service is funded by advertisements (similar to broadcast TV). A FAST channel can expand brand visibility globally without expensive satellite transponder or traditional distribution fees. And rather than compete with a variety of genres on an SVOD dashboard, a wrestling show on a FAST channel benefits from being discovered by channel surfers browsing combat sports-related grids. FAST is available 24/7, which means both new and archive content can generate ad earnings even while the promoter is asleep. Although the immediate earnings generated from traditional TV carriage deal ad breaks are typically much higher, consumption habits are changing. Streaming is becoming increasingly dominant, with the number of video streamer users worldwide expected to increase to 4.6 billion by 2027.
As for the time-buy model, if a promotion buys a single weekend morning or late-night time slot on one or two strong independent stations in the area where they host events, it would help increase attendance and the promotion's chances of being able to get local sponsorships.
Television is a structured marketing engine, and whether a promoter chooses the cash-preservation of a barter or the guaranteed visibility of a time-buy, the ultimate goal remains the same: convert viewer attention into dollars. If you are a promoter who is trying to decide between barter and time-buy or doesn't know where to go from there, you can reach out to discuss your specific needs via info@harold-williams.com
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