In a significant move for sports broadcasting, Paramount has secured the US rights to UFC for an impressive seven-year period, as reported by NBC News. This monumental agreement, valued at $7.7 billion, will commence in 2026 and encompasses the full lineup of 13 marquee bouts along with 30 Fight Night events each year.
Under this new contract, all UFC matches and events will be available for streaming in the United States exclusively on Paramount+, with select fights also simulcasting on CBS. This transition marks the end of the traditional pay-per-view (PPV) model that has been a staple of the UFC's broadcasting strategy, particularly through ESPN+. Mark Shapiro, president of UFC's parent company TKO Group, expressed that the PPV model feels "outdated and antiquated," suggesting that the shift to a subscription model will better cater to the UFC's dedicated fanbase.
Unlike many other sports that have a defined season, UFC events occur throughout the year, which is expected to keep the organization's massive fanbase engaged with their Paramount+ subscriptions. This consistent content availability is a key strategy to attract and retain subscribers in a competitive streaming market.
This landmark deal comes shortly after Skydance Media acquired Paramount and its subsidiaries for a staggering $8 billion. Industry experts are noting the contrast in investment, with Skydance paying such a large sum for the entire company while Paramount allocates $7.7 billion solely for the rights to air UFC fights in the United States for a limited duration.
David Ellison, CEO of TKO Group, referred to UFC as a "unicorn asset" that emerges only once a decade, highlighting the organization's unique position within the sports industry. This acquisition is not just about broadcasting rights; it reflects a broader strategy by Paramount to solidify its place in the competitive landscape of sports entertainment.
Paramount is also eyeing the international rights to air UFC matches and has been granted an exclusive negotiation window with each country to pursue this goal. This expansion could further enhance the UFC's global reach and boost Paramount's subscription numbers on a worldwide scale.
Interestingly, reports suggest that Paramount may have taken steps to gain favor with former President Trump to facilitate the acquisition's approval by the FCC. The company reportedly paid $16 million to settle a controversy related to a 60 Minutes segment featuring Kamala Harris. This financial move was aimed at easing tensions and ensuring a smooth regulatory process, marking the intricate interplay between corporate interests and political landscapes.
Moreover, CBS, also under the Paramount umbrella, made headlines by canceling The Late Show With Stephen Colbert, a decision viewed by many as a strategic move to appease Trump. While the former president denies this claim, asserting that the cancellation was due to "a pure lack of talent," the situation reflects the complex dynamics at play in the media and entertainment industry.
As this situation develops, the implications of Paramount's acquisition of UFC rights will be closely monitored, particularly in how it reshapes the viewing experience for fans and alters the landscape of sports broadcasting.
