News Summary
Paramount has finalized a landmark $7.7 billion deal to stream UFC events exclusively in the U.S. starting in 2026. This seven-year agreement covers 13 numbered events and 30 Fight Nights, moving away from the pay-per-view model to enhance accessibility for fans. Following a merger with Skydance Media, this strategic shift aims to significantly increase Paramount+ subscriptions and position it as a major player in sports entertainment. The deal also illustrates the growing revenue potential of UFC media rights, putting it close to other major sporting events.
Paramount Secures $7.7 Billion UFC Streaming Rights Deal Following Skydance Merger
Los Angeles – Paramount has finalized a major multi-billion dollar deal to acquire the media rights to UFC events, valued at $7.7 billion. This seven-year agreement will enable Paramount+ to stream all UFC events exclusively within the United States starting in 2026, marking a significant shift in the broadcasting landscape for Mixed Martial Arts.
Details of the Agreement
The deal encompasses 13 numbered UFC events and 30 “Fight Nights,” with select events set to be simulcast on CBS, enhancing the visibility of UFC programming to a broader audience. UFC CEO Dana White expressed praise for the aggressive strategy employed by David Ellison, CEO of Skydance Media, which played a critical role in securing this lucrative agreement.
Impact on Revenue
This new media rights deal is projected to average approximately $1.1 billion per year, positioning the UFC’s media rights revenue in close proximity to major sporting events such as 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 comparison, UFC’s previous agreement with ESPN, which is valued at an estimated $350 million annually and continues until 2025, will drastically increase financial inflow under the new deal.
Strategic Shift in Broadcast Approach
One of the notable changes under the new deal is the elimination of the pay-per-view model, which was a contentious point due to the associated high costs that contributed to increased piracy issues. TKO Holdings’ president, Mark Shapiro, indicated that the company aims to create a more accessible viewing experience for UFC fans, which aligns with Paramount’s strategy for greater engagement and subscriber growth.
Merger with Skydance Media
This announcement follows the recent merger between Skydance Media and Paramount, which has been approved just days prior to the agreement. David Ellison, the CEO of Skydance Media and son of Larry Ellison, the second-richest man globally, underscores the strong corporate backing behind this initiative. As of July 31, Paramount+ reported 77.7 million subscribers, reflecting a significant gap when compared to streaming giants such as Netflix and Amazon Prime Video.
Future Prospects
In addition to the domestic streaming rights, UFC plans to maintain its international media rights through IMG, estimated at $250 million per year. The strategic focus is squarely on increasing accessibility and discoverability for viewers, making the UFC experience more user-friendly.
Stock Market Reaction
Following the announcement of the streaming rights deal, TKO’s stock experienced a rise of over 10%, indicating positive investor sentiment towards the new agreement. Conversely, Paramount’s shares saw a slight decline, reflecting mixed market reactions to the significant financial commitments outlined in the deal.
Future UFC Events
Looking ahead, UFC is poised to host a unique event at the White House around July 4, 2026, which is likely to be broadcast on CBS, further broadening its reach and engagement with fans. This strategy aligns with the broader vision of harnessing the sport’s passionate fanbase while enhancing Paramount’s content portfolio to drive subscriber growth.
The acquisition of UFC streaming rights represents a pivotal moment for both Paramount and the UFC. The move is expected to not only solidify UFC’s status in the media landscape but also empower Paramount+ to attract new subscribers and elevate their standing as a major player in sports entertainment.
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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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