News Summary
Paramount has secured a seven-year media rights agreement with UFC worth $7.7 billion, beginning in 2026. This deal allows Paramount+ to exclusively stream all UFC events in the U.S., marking a major shift from pay-per-view to subscription-based access. The agreement includes streaming rights for 13 numbered UFC events and 30 Fight Nights annually, with additional broadcasts on CBS. This transformation aims to increase accessibility and combat piracy while positioning Paramount to grow its subscriber base.
Los Angeles, CA – Major Streaming Rights Deal Enhances UFC and Paramount Partnership
Paramount has announced a significant seven-year media rights agreement with the UFC, valued at $7.7 billion. The deal marks a major shift in the business model for the Mixed Martial Arts organization and aims to strengthen its media presence primarily within the United States. Starting in 2026, Paramount+ will exclusively stream all UFC events in the U.S., positioning the streaming platform as the primary broadcaster for the sport domestically.
Details of the Streaming Rights Agreement
The comprehensive agreement includes the streaming rights for 13 numbered UFC events and 30 Fight Nights annually. In addition, select events will be broadcast simultaneously on CBS, ensuring wider broadcast reach. This arrangement signifies a shift from the UFC’s previous reliance on pay-per-view models, marking a strategic move toward more accessible content delivery. Paramount’s payments for these rights are estimated to average $1.1 billion annually, positioning UFC media rights revenue close to other major sports leagues such as Major League Baseball (MLB) and the Olympic Games.
Strategic Considerations and Industry Positioning
UFC’s media rights revenue with Paramount will nearly double the current income from its existing deal with ESPN, which is estimated at $350 million per year. The ESPN agreement also included a pay-per-view component, which the new Paramount deal plans to eliminate, reflecting a shift toward subscription-based viewership. Industry insiders note that the change is intended to reduce high costs and combat increasing piracy related to pay-per-view events. UFC’s control over its own broadcast production—unlike other sports leagues that rely on third-party broadcasters—facilitates this more streamlined approach.
Background and Recent Developments
The media rights deal emerged shortly after the approval of the merger between Skydance Media and Paramount. David Ellison, CEO of Skydance Media and son of billionaire Larry Ellison, played a key role in the negotiations, emphasizing an aggressive strategy to advance the deal. This merger and the subsequent rights agreement reflect a broader corporate approach to leveraging sports content for growth and subscriber engagement.
International and Broader Content Strategy
Despite the U.S. rights being secured through Paramount, UFC will continue its international media rights sales via IMG, which are valued at approximately $250 million annually. This approach underscores UFC’s multifaceted media strategy, balancing domestic digital streaming with international partnerships to maximize revenue.
Implications for Viewership and Platform Growth
As of July 31, Paramount+ had around 77.7 million subscribers, which remains below major competitors like Netflix and Amazon Prime Video. The UFC deal is expected to boost Paramount+’s content portfolio and attract more subscribers by capitalizing on the sport’s dedicated fanbase. The strategic move is seen as part of broader efforts to increase the platform’s footprint and appeal in an increasingly competitive streaming market.
Upcoming Events and Future Plans
UFC President Dana White has indicated plans to host a UFC event at the White House around July 4, 2026, potentially broadcast on CBS as part of the deal. This event could serve as a flagship showcase for the sport and the new broadcasting partnership.
Market Reactions and Financial Impact
Following the announcement, the stock of TKO Holdings, which owns UFC, rose over 10%, reflecting investor optimism about the potential revenue growth. Conversely, Paramount’s stock experienced a slight decline, possibly due to market adjustments related to the substantial financial commitment involved in the deal.
This new media rights agreement signifies a crucial moment for both UFC and Paramount, emphasizing a focus on accessibility, discoverability, and strategic growth within the sports entertainment industry.
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Additional Resources
- Las Vegas Sun: Paramount Secures UFC Streaming Rights
- Wikipedia: Ultimate Fighting Championship
- Forbes: Dana White on UFC Streaming Deal
- Google Search: UFC Streaming Deal
- Bloomberg: Paramount Buys UFC Rights
- Google Scholar: UFC Media Rights Deal
- TV Technology: Paramount Inks UFC Rights Deal
- Encyclopedia Britannica: UFC Broadcasting
- Sherdog: Dana White on UFC Events
- Google News: UFC Streaming Rights
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