Paramount buys UFC rights in the US for $7.7B
What's the story
Paramount has bagged exclusive streaming and broadcast rights for the Ultimate Fighting Championship (UFC) in the US. The deal, which is worth around $7.7 billion, will kick off in 2026. Under this agreement, Paramount will show a full slate of 13 marquee events and 30 "Fight Nights" on its Paramount+ streaming service. Some of these events will also be simulcast on CBS, a network owned by Paramount.
Deal details
Departure from traditional pay-per-view model
The deal sees Paramount paying an average of $1.1 billion per year to show the full slate of UFC events. However, unlike ESPN+, which charged a monthly subscription fee and an additional pay-per-view fee for select premium UFC events, Paramount has said it won't charge any extra fees from subscribers to access these events. This marks a departure from the traditional pay-per-view model used by ESPN+ for streaming specific premium UFC events.
Strategic shift
Media companies pivoting toward live sports content
The deal with UFC comes as part of a larger strategy by media companies to focus on sports content amid rising cord-cutting. Other major players like Netflix and Disney have also made similar moves to strengthen their content libraries with live event rights. David Ellison, Chairman and CEO of Paramount, emphasized the importance of live sports in their broader strategy, calling UFC a "global sports powerhouse."
Merger impact
Paramount merges with Skydance Media
The announcement of the UFC deal comes just days after Paramount completed its merger with Skydance Media. The $8.4 billion deal was finalized last week after a long negotiation process marred by political scrutiny and shareholder concerns. Now, under the new leadership of Ellison, Paramount is all set to take a major step into live sports streaming with this landmark agreement.