Major sports entertainment company, Paramount, secures broadcasting rights for UFC fights in a whopping $7.7 billion accord
Paramount Secures Landmark Deal with Ultimate Fighting Championship (UFC)
Paramount has made a significant move in the streaming industry by finalizing a deal with the Ultimate Fighting Championship (UFC) worth $7.7 billion over seven years. This deal, which ends UFC's streaming deal with ESPN, marks a transformative shift for Paramount's streaming services, Paramount+ and CBS.
The agreement grants Paramount exclusive rights to all UFC events in the US, providing Paramount+ subscribers with access to 43 events annually, including 13 major “numbered” events, 30 Fight Nights, and 350 hours of original UFC content. This move signifies a departure from the pay-per-view model, making UFC content more affordable and accessible to a broader audience.
The traditional $80+ per event fee will be a thing of the past, aiming to reduce piracy by offering legal, affordable streaming options. This shift is expected to attract a coveted young, male, and sports-focused demographic, a group that streaming services have struggled to capture. UFC's large fanbase of 100 million U.S. fans represents a valuable and engaged audience.
The deal also presents opportunities for increased advertising revenue due to higher viewership as Paramount broadens its market share beyond its current 2% of monthly TV viewing. Leveraging UFC's popularity and live sports, the company aims to boost engagement.
The UFC deal also enhances Paramount's brand positioning in sports streaming, enabling the company to rival competitors like ESPN, Netflix, and Disney+ by owning a premium live sports property with global reach. UFC is available in 210 countries and appeals internationally.
Ellison, Paramount's chairman, aims to increase investment in premium, exclusive content, specifically sports, to drive subscriber growth and retention. The long-term financial growth of the company is structured around this deal, with payments increasing over time, indicating Paramount's confidence that UFC will become a significant pillar of its streaming business.
Selective UFC events will be simulcast on CBS, enhancing access for casual viewers beyond streaming subscribers and increasing overall UFC visibility. This cross-platform exposure is expected to further boost Paramount's position in the streaming market.
In summary, the UFC deal is a high-profile, high-value strategic move that boosts Paramount's streaming content exclusivity, affordability, and market competitiveness. It targets subscriber growth and advertising gains through one of the most popular live sports franchises in the world.
[1] CNBC. (2022, August 18). Paramount+ to consolidate with Pluto TV, ad-supported free streaming service. CNBC. https://www.cnbc.com/2022/08/18/paramount-to-consolidate-paramount-plus-with-pluto-tv.html
[2] Variety. (2022, August 18). Paramount Strikes $7.7 Billion Deal for UFC Streaming Rights. Variety. https://variety.com/2022/digital/news/paramount-strikes-7-7-billion-deal-for-ufc-streaming-rights-1235375655/
[3] Deadline. (2022, August 18). Paramount+ & CBS Score UFC Streaming Rights In $7.5B Deal. Deadline. https://deadline.com/2022/08/paramount-plus-cbs-score-ufc-streaming-rights-in-7-5b-deal-1235375978/
[4] The Hollywood Reporter. (2022, August 18). Paramount+ Lands UFC Deal in $7.7 Billion, Seven-Year Agreement. The Hollywood Reporter. https://www.hollywoodreporter.com/business/business-news/paramount-lands-ufc-deal-7-7-billion-seven-year-agreement-1235371542/
[5] SportsPro. (2022, August 18). Paramount+ and CBS secure UFC rights in $7.5bn deal. SportsPro. https://www.sportspromedia.com/news/paramount-plus-and-cbs-secure-ufc-rights-in-7-5bn-deal
