News Summary
Paramount has finalized a $7.7 billion media rights agreement with UFC, making Paramount+ the exclusive streaming platform for all UFC events in the U.S. from 2026. This significant deal, which includes broadcasting 13 numbered events and 30 Fight Nights per year, indicates a strategic shift away from traditional pay-per-view models toward increased accessibility. The partnership aims to boost Paramount’s subscriber base and enhance its sports content offerings, coinciding with the recent Skydance merger. Market reactions to the deal have seen TKO Holdings stock rise, while Paramount’s stock experienced slight declines.
Paramount Secures $7.7 Billion UFC Streaming Rights Deal Following Skydance Merger
Los Angeles — In a significant move within the sports and entertainment industry, Paramount has announced a seven-year media rights agreement with the Ultimate Fighting Championship (UFC), valued at approximately $7.7 billion. The deal will see Paramount+ become the exclusive streaming platform for all UFC events in the United States starting in 2026, signaling a strategic shift for the martial arts promotion and the media giant.
Key Details of the Media Rights Agreement
The new contract grants Paramount rights to broadcast 13 numbered UFC events and 30 Fight Nights annually in the U.S., with select events also simulcast on the CBS broadcast network. This arrangement emphasizes the company’s focus on increasing accessibility and discoverability, moving away from traditional pay-per-view models that have historically been central to UFC’s revenue strategy.
The deal’s average annual value is roughly $1.1 billion, bringing UFC’s media rights revenue to a level comparable with some major sports leagues. Currently, the UFC’s media revenue is estimated to be close to that of Major League Baseball (MLB), which earns around $1.8 billion annually from media rights, and the Olympics, at approximately $1.3 billion. Other comparable figures include March Madness and Nascar, each generating about $1.1 billion, while the NHL and PGA Tour earn roughly $635 million and $700 million, respectively.
UFC plans to continue monetizing its international media rights through its partnership with IMG, with ongoing negotiations estimated to bring in an additional $250 million per year.
Implications of the Deal
This agreement nearly doubles the UFC’s current annual media revenue from ESPN, which is estimated at $350 million. The previous ESPN deal included a pay-per-view (PPV) component, which will be abolished under the new arrangement. The move aligns with a broader industry trend away from PPV models, partly attributable to high costs that have contributed to increased piracy and reduced accessibility.
The deal’s timing coincides with the recent approval of the merger between Skydance Media and Paramount, underscoring a cohesive corporate strategy. Skydance CEO David Ellison, who is the son of billionaire Larry Ellison, has played an influential role in driving Paramount’s entry into sports rights acquisitions, emphasizing the importance of sports content in attracting new subscribers and engaging existing audiences.
Prior to this deal, there was consideration of involving multiple media partners—including discussions with streaming platforms like Netflix and Warner Bros. Discovery—to distribute UFC content, but Paramount secured the exclusive rights in the U.S., indicating a preference for centralized control.
Strategic Goals and Future Plans
Paramount’s CEO has indicated that sports rights are a key component of the company’s broader content and subscriber growth strategy. As of July 31, 2023, Paramount+ had approximately 77.7 million subscribers, a figure notably lower than competitors such as Netflix and Amazon Prime Video. This new UFC partnership aims to enhance content offerings and boost subscriber numbers by tapping into the sport’s dedicated fan base.
UFC President Dana White has also revealed plans to host a UFC event at the White House around July 4, 2026, with the potential for CBS to broadcast such a high-profile occasion, further increasing the reach and visibility of UFC events in the United States.
Market Reactions and Industry Impact
Following the announcement, the stock of TKO Holdings, UFC’s parent company, rose over 10%, reflecting investor optimism about the new revenue prospects. In contrast, Paramount’s stock experienced slight declines, possibly due to concerns about increased content costs or market adjustments.
This record-breaking deal signifies a major evolution in UFC’s media rights approach and demonstrates Paramount’s commitment to expanding its sports and live event portfolio through strategic acquisitions. It also marks a notable shift in the landscape of sports broadcasting rights, with the UFC positioning itself as a leading content provider in the streaming era.
Deeper Dive: News & Info About This Topic
HERE Resources
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
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
