UFC Strikes a Deal with Paramount+, Shifting Away from Pay-Per-View Model
Major Merger Between UFC and Paramount Brings an End to Pay-Per-View Tradition, Valued at $7.7 Billion
In a move that is set to revolutionize the world of mixed martial arts, the Ultimate Fighting Championship (UFC) has announced a significant partnership with streaming giant Paramount+. This deal, which is expected to contribute to substantial subscriber gains for Paramount+, will see UFC events become an integral part of the streaming service's content package.
A Subscription-Based Revolution
The UFC's transition from the traditional pay-per-view (PPV) model to a subscription-based streaming service marks a shift towards increased accessibility and affordability for viewers. Under the new arrangement, all UFC events will be included in the Paramount+ subscription, eliminating the need for fans to purchase each event separately.
Expanding Reach and Attracting New Subscribers
By bundling UFC events into a broader content package, Paramount+ aims to attract a wider audience and increase the UFC's reach. This approach reduces the "per-event friction," making it easier for fans to access UFC content without having to make a decision about each individual event purchase.
The UFC's New Home in the U.S.
The deal provides access to 30 Fight Nights and 13 marquee numbered events annually, starting in 2026. This makes Paramount+ the exclusive U.S. home for all UFC events, a status that is expected to attract new subscribers who want access to UFC content without the need for PPV purchases.
A Win-Win Situation for Both Parties
Mark Shapiro, TKO president and COO, has praised the new agreement, stating that it provides "meaningful economics for investors," expanded premium inventory for global brand partners, and deeper engagement for UFC's fanbase. Shapiro also mentioned that "our athletes will love this new stage."
David Ellison, CEO of Paramount, has also expressed enthusiasm for the deal, stating that live sports are a key part of their strategy. He believes that the UFC's deal will benefit TKO financially and provide opportunities for growth.
A Long-Standing Relationship
The UFC's deal with Paramount+ comes after the official close of Paramount's merger with Skydance Media. This partnership continues a long-standing relationship between the two entities, as twenty years ago, Spike TV (predecessor of Paramount Network) premiered The Ultimate Fighter, a reality show following aspiring UFC combatants.
A Shift in the Sports Streaming Landscape
Notably, in both the Paramount and WWE deals, traditional sports buyers have acquired the assets instead of new streaming players like Amazon or Netflix. Combat sports have shown to be particularly valuable for modern media companies seeking year-round draws, and this deal is expected to further solidify UFC's position in the sports streaming landscape.
Original Content in the Works?
There are reports that the media company may produce original content based on UFC, adding another layer of excitement to this already thrilling partnership.
With the UFC joining other events like March Madness, the Masters, and the NFL in Paramount's portfolio, sports fans have even more reasons to tune in to Paramount+. The UFC's deal with Paramount+ significantly impacts the organization's pay-per-view (PPV) model, making UFC events more accessible to viewers and potentially driving subscriber growth for Paramount+.
The UFC's partnership with Paramount+, as they move from the pay-per-view model to a subscription-based streaming service, could attract fans interested in business and finance, as larger subscription numbers could bring significant profits for both parties.
By providing UFC events as part of a broader content package, Paramount+ aims to expand its reach in the sports industry, particularly in mixed-martial-arts, a sector that has been growing in popularity in recent years.
