News Summary
Paramount has announced a transformative seven-year media rights deal valued at $7.7 billion with the UFC. This agreement will enable Paramount+ to stream all UFC events exclusively in the U.S., set to commence in 2026. The deal includes numerous events and aims to enhance subscriber growth and accessibility while replacing the traditional pay-per-view model. As part of strategic developments, UFC plans to continue international media rights sales, contributing to revenue growth. The deal comes shortly after Paramount’s merger with Skydance, reflecting its commitment to sports broadcasting.
Paramount Secures $7.7 Billion UFC Streaming Rights Deal Following Skydance Merger
Los Angeles, CA – Paramount has announced a groundbreaking seven-year media rights deal with the Ultimate Fighting Championship (UFC), valued at $7.7 billion. Set to begin in 2026, this agreement will enable Paramount+ to stream all UFC events exclusively in the U.S.
The extensive deal encompasses 13 numbered events and 30 “Fight Nights,” with select events being simulcast on CBS. This partnership comes on the heels of the recent merger approval between Paramount and Skydance Media, marking a pivotal moment for both entities.
Financial Implications and Market Position
The average annual value of this deal is estimated at approximately $1.1 billion. This positions UFC media rights revenue comparably to other major sports leagues, including Major League Baseball (MLB) at $1.8 billion, the Olympics at $1.3 billion, and both March Madness and Nascar at $1.1 billion. In contrast, the National Hockey League (NHL) generates about $635 million, while the PGA Tour earns around $700 million.
This deal is expected to nearly double UFC’s current media revenue from its agreement with ESPN, which generates around $350 million annually and is set to conclude in 2025. Unlike the previous deal, which included a pay-per-view model, the new agreement with Paramount eliminates this model, a move that is anticipated to enhance accessibility for viewers and mitigate piracy issues.
Strategic Developments and Future Plans
As part of its strategy, UFC plans to continue its international media rights sales through IMG, projected to bring in an additional $250 million annually. This approach allows the UFC to maintain control over its broadcast productions, ensuring the integrity of its events while providing a more seamless viewing experience.
Mark Shapiro, president of TKO Holdings, noted that the company aims to move away from the high-cost pay-per-view model, which has been a contributing factor to increased piracy. The shift towards streaming-only broadcasts aligns with the growing trends in media consumption and the changing landscape of sports broadcasting.
Initially, there were considerations for developing the media rights package with multiple partners, including discussions with Netflix and Warner Bros. Discovery. However, Paramount’s final deal underscores the importance of sports rights in the company’s broader engagement and subscriber growth strategy. Paramount CEO David Ellison pointed out that this agreement is crucial for enhancing the platform’s content offerings.
Current Subscriber Dynamics
As of July 31, Paramount+ boasts 77.7 million subscribers, significantly trailing behind competitors like Netflix and Amazon Prime Video. The UFC deal is expected to bolster Paramount’s content portfolio while appealing to the sport’s dedicated fanbase, potentially driving subscriber growth significantly.
In a notable event for promoting the new deal, Dana White, UFC’s CEO, has confirmed plans for a UFC event at the White House around July 4, 2026, which is likely to be broadcast on CBS, further maximizing exposure for the UFC brand.
Following the announcement of the new deal, TKO’s stock saw an increase of over 10%, while Paramount’s stock experienced a slight decline. This financial fluctuation reflects investor sentiment surrounding the strategic move and its potential long-term impact on the companies involved.
Conclusion
The $7.7 billion streaming rights contract marks a significant development in sports media, showcasing a strategic shift for both the UFC and Paramount. As they move forward in their partnership, this deal aims to provide fans with improved access to live events while enhancing revenue streams for both organizations.
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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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