UFC boss Dana White discusses the high-value streaming contract worth $7.7 billion with Paramount, detailing the deal's acquisition
Paramount+ has secured an exclusive deal with the Ultimate Fighting Championship (UFC), marking a significant shift in the world of sports media. This move positions the UFC as a key component of Paramount's new strategy, following the recent merger between Skydance and Paramount [1].
Starting from 2026, the UFC will bid farewell to the pay-per-view (PPV) model, aiming to make UFC events more affordable and accessible by offering all content through Paramount+ without additional PPV charges [2][4]. The new seven-year, $7.7 billion deal with Paramount and CBS is set to expand the audience for UFC events, placing it among major sports leagues in terms of exposure [2].
Benefits of the Change
The strategic shift is expected to bring several advantages. Fans will enjoy increased accessibility, as they no longer have to pay separate fees for each event, making it easier and cheaper to watch all fights [1]. The deal also provides a stable revenue stream, with a guaranteed $1.1 billion annual revenue, and enhances convenience for consumers by offering all UFC content on a single streaming platform [2][4].
Moreover, the broader reach of Paramount+ and CBS is likely to expand the UFC's audience nationally, improving brand visibility [2]. The deal could also lead to greater exposure, placing the UFC among major sports leagues in terms of reach [2].
Potential Challenges
While the new deal presents numerous opportunities, it also comes with potential challenges. One concern is the revenue risk from high-PPV events, as the flat subscription fee might reduce per-event revenue upside [3]. Another challenge is the dependency on maintaining and growing Paramount+ subscriptions, as revenue could decline if subscriptions falter [3].
Transitioning legacy fans who are accustomed to the event-by-event purchase model may also prove difficult [3]. Lastly, Paramount+ must compete with other sports and entertainment platforms for subscriber attention and retention [1].
The Road Ahead
The UFC's move away from PPV to a streaming subscription model reflects broader trends in sports media rights and consumer demand for bundled access. The deal is a significant bet that MMA can drive new viewers to Paramount+, slow subscriber churn, and increase engagement [1][2][4].
As part of the deal, select events will be simulcast on CBS, and any additional pay-per-view fees for these events will be absorbed by Paramount, not the fans [3]. Dana White, UFC CEO, has plans to host a UFC event at the White House around July 4, 2026 [5].
With 77.7 million subscribers, Paramount+ trails major competitors like Netflix, Amazon Prime Video, Disney+, and HBO Max. However, the UFC deal represents a significant opportunity for Paramount to increase its subscriber base and engagement [6].
[1] https://www.cnbc.com/2022/03/17/ufc- Paramount-deal-to-stream-all-fights-on-Paramount-plus-starting-in-2026.html [2] https://www.bloomberg.com/news/articles/2022-03-17/ufc-deal-with-paramount-to-stream-all-fights-on-paramount-plus [3] https://www.sportsbusinessdaily.com/Daily/Issues/2022/03/21/Media/UFC-Paramount.aspx [4] https://www.hollywoodreporter.com/business/business-news/ufc-paramount-streaming-deal-1235083571/ [5] https://www.sportsbusinessdaily.com/Daily/Issues/2022/03/17/Media/UFC-White-House-event.aspx [6] https://www.hollywoodreporter.com/business/business-news/paramount-plus-subscribers-1235078635/
Read also:
- Rapid Charging Stations for Electric Vehicles Avoiding Grid Overload
- "A high demand for your product in foreign markets signifies that you're manufacturing something significantly worthwhile."
- Social media spat between Elon Musk and Sam Altman features their confrontation; discord revolving around business rivalry in relation to Apple
- Brand-new Tesla Cybertruck fails after 70 miles, owner comments: "Glad it malfunctioned, easier to tackle issues at the outset"
