Sports giants Paramount and ESPN secure deals with UFC and WWE, introducing steel chairs in their streaming combat encounters
The sports streaming market is experiencing a significant transformation, with major players vying for dominance and strategic shifts shaping the landscape.
In a notable move, Paramount+, the streaming service owned by TKO Holdings which also includes CBS, has secured the media rights for the Ultimate Fighting Championship (UFC). This deal, worth an estimated $1.1 billion per year for U.S. distribution rights, marks a departure from the pay-per-view model, with all 43 UFC events now accessible to Paramount+ subscribers for the base monthly subscription fee. Some major events will also be simulcast on the CBS broadcast network.
Paramount's strategy aims to leverage its larger streaming subscriber base, though it currently lags behind ESPN in social media reach. The move is also intended to combat piracy, as the UFC estimates losing 20,000-30,000 subscribers per event due to it.
Meanwhile, Netflix is carving out a niche for itself by targeting "event" or short-duration sports programming. The streaming giant has outbid traditional broadcasters like ESPN and CBS for specific rights such as the USGA (U.S. Golf Association). Netflix's approach focuses on standalone sports events like the Home Run Derby or discrete tournaments, positioning itself as a potential high-value bidder for non-season-long content without the burden of ongoing inventory.
ESPN, while remaining a powerhouse in sports streaming with a broad portfolio of rights, faces challenges as competitors like Paramount alter their streaming-native deals and new entrants target niche event content. The loss of the USGA rights to Netflix signaled ESPN's vulnerability in very specific sports domains.
Amazon and YouTube continue to pursue sports content aggressively, especially in live and esports streaming. Amazon, through Prime Video, holds significant rights in NFL, Premier League, and other sports, while YouTube remains prominent in esports and game streaming.
The growing importance of data and analytics in sports performance, fan engagement, and streaming experience also shapes the market. The sports analytics market is expected to grow from $2.29 billion in 2025 to $4.75 billion by 2030 at a CAGR of 15.7%, driven by AI-powered analytics, personalized fan data, and innovations like real-time betting and micro-betting.
In the midst of this dynamic market, ESPN is reimagining its approach as the center of sports fans' universe, introducing a direct-to-consumer product on Aug. 21. The new service will cost $29.99 per month but can be combined with Fox One for a $10-per-month saving, totaling $40. YouTube is also preparing for its first NFL game in the first week of the regular season.
The sports streaming wars are heating up, with old players like Disney, Paramount, Fox, and NBC showing no signs of fading away. NBC/Peacock and Amazon have the NBA coming in the fall, while WWE has the legacy brand of ESPN as it enters its next phase. The Great Rebundling, which involves combining services, is being attempted again by ESPN, Fox, and TNT Sports.
This article originally appeared in The Athletic, reporting on the current state and future direction of the sports streaming market. The landscape is marked by aggressive competition and strategic shifts among major players, with each player seeking to establish its position in this evolving market.
[1] Sports Analytics Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Sports Performance, Fan Engagement, Streaming Experience), By Region, And Segment Forecasts, 2021 - 2030.
[2] Netflix is outbidding ESPN for sports rights, and it's a huge problem for the Worldwide Leader
[3] The Sports Analytics Market: Opportunities and Challenges
[4] Paramount+ vs ESPN+: Which streaming service is better for sports fans?
[5] Amazon Prime Video and YouTube are the latest platforms to bid for sports rights
