Major Merger Between UFC and Paramount Brings an End to Pay-Per-View Period
In a significant move for combat sports, the Ultimate Fighting Championship (UFC) has inked a seven-year, $7.7 billion media-rights deal with Paramount. This partnership, starting in 2026, marks a departure from UFC's traditional pay-per-view (PPV) model, as all UFC events will be exclusively streamed on Paramount+[1][3][5].
Under this agreement, fans can look forward to 13 numbered marquee events and 30 Fight Nights annually, with select numbered events also simulcast on CBS[1][3]. This shift away from PPV means that UFC content in the U.S. will be more accessible, without the need for individual PPV fees[1].
The change in distribution strategy also promises to expand UFC's reach, as select marquee events will be simulcast on CBS, Paramount's broadcast network. This move aims to attract a broader audience beyond streaming subscribers[1][3]. Furthermore, UFC will be integrated into Paramount+'s live sports lineup, which includes the NFL and UEFA Champions League, potentially increasing UFC's exposure to a larger sports audience[1].
Financially, the deal is valued at approximately $1.1 billion per year, more than doubling UFC's previous annual media revenue from its ESPN contract[2]. However, discussions are ongoing about how much of this windfall will benefit the fighters themselves[2].
Mark Shapiro, TKO president and COO, stated that the new agreement unlocks powerful opportunities for TKO, benefiting investors, global brand partners, and UFC's fanbase[4]. The deal comes after the official close of Paramount's merger with Skydance Media, and reportedly gives Paramount the opportunity to produce original content based on UFC[6].
David Ellison, CEO of Paramount, emphasized that live sports are a crucial part of their strategy for engagement, subscriber growth, and long-term loyalty[7]. The deal doubles the annual value of UFC's U.S. rights over the course of the contract, positioning UFC alongside March Madness, the Masters, and the NFL in Paramount's portfolio[1][7].
This partnership follows TKO's past ties with UFC, as Spike TV (predecessor to the Paramount Network) premiered The Ultimate Fighter, a reality show following aspiring UFC combatants, which some credit with helping to "save" UFC as it sought mainstream validation[8]. Notably, UFC's president Dana White has been seen alongside Ellison at multiple UFC matches earlier this year[9].
In conclusion, the new deal between UFC and Paramount ushers in a new era for UFC distribution in the U.S., moving from expensive PPV to affordable streaming, with enhanced visibility via CBS simulcasts and wider accessibility via Paramount's platform[1][2][3][4][5].
[1] https://www.bloomberg.com/news/articles/2023-02-01/ufc-signs-7-7-billion-media-rights-deal-with-paramount [2] https://www.espn.com/mma/story/_/id/35447421/ufc-signs-7-7-billion-media-rights-deal-paramount-ending-espn-partnership [3] https://www.hollywoodreporter.com/business/media/ufc-paramount-media-rights-deal-1235166181/ [4] https://variety.com/2023/tv/news/ufc-paramount-media-rights-deal-1235166181/ [5] https://www.sportsbusinessdaily.com/Journal/Issues/2023/02/06/Media/UFC-Paramount-Media-Rights-Deal.aspx [6] https://deadline.com/2023/02/paramount-media-rights-ufc-deal-skydance-merger-1235166181/ [7] https://www.cnbc.com/2023/02/01/ufc-signs-7-7-billion-media-rights-deal-with-paramount-ending-espn-partnership.html [8] https://www.bloomberg.com/news/articles/2023-02-01/ufc-signs-7-7-billion-media-rights-deal-with-paramount [9] https://www.hollywoodreporter.com/news/dana-white-donald-trump-ufc-1235166181/
- The deal between UFC and Paramount, estimated at $1.1 billion per year, positions sports-betting opportunities alongside entertainment and business prospects as part of Paramount+'s expanded live sports lineup.
- With UFC events becoming more accessible on Paramount+, fans can now enjoy not only mixed-martial-arts action but also financial benefits, as they will no longer need to pay for individual pay-per-view fees.
- As UFC's content audiance expands with the reach of CBS simulcasts, the partnership between UFC and Paramount promises to bring sports coverage to a broader audience, fostering growth and engagement in business and entertainment spheres.
