UFC Shifts away from Pay-Per-View Model under $7.7B Media Rights Agreement with Paramount
UFC Strikes a Historic Deal with Paramount
The Ultimate Fighting Championship (UFC) has announced a significant shift in its distribution strategy, with a seven-year deal worth $7.7 billion with Paramount+ set to take effect in 2026. This move marks the end of the traditional pay-per-view (PPV) model and ushers in a new era of affordability and accessibility for UFC fans in the United States.
Key aspects of the deal include:
- Duration and Value: The agreement spans seven years, with a total value of $7.7 billion, averaging approximately $1.1 billion annually.
- Broadcast Scope: Paramount+ will stream all 43 yearly live UFC events, including 13 numbered marquee events and 30 Fight Night events.
- Simulcasts: Select numbered events will also be simulcast on CBS, owned by Paramount’s parent company Skydance.
- End of Pay-Per-View Model: For the first time since UFC's inception in 1993, all UFC content will be available without an additional PPV fee.
- User Impact: Instead of paying about $80 per numbered event under the old system, UFC fans will pay only the Paramount+ subscription fee to watch all events live.
- Strategic Significance: UFC President Dana White called the deal "historic," highlighting the expanded fan accessibility and positioning UFC among the largest global sports platforms. Paramount aims to leverage UFC alongside other major live sports on its platform like the NFL and UEFA Champions League.
- Future International Rights: Paramount also indicated it will explore UFC rights outside the U.S. as opportunities arise.
This deal represents a major evolution in UFC's distribution strategy, embracing streaming and subscription-based models rather than pay-per-view, thus broadening the sport's reach and engagement with U.S. fans.
Notably, the initial contracts with ESPN for UFC events were reportedly valued at around $300 million per year. The UFC deal with Paramount and CBS is described as a "historic deal" by UFC president Dana White, and it is considered a "milestone moment" by TKO Executive Chair and CEO Ariel Emanuel.
This new agreement is another major move for TKO Group Holdings, following the recent WWE-ESPN deal. The stock price of TKO Group Holdings has increased by 8.01%, while the stock price of Paramount SkyDance Corp Com Com has decreased by 10.48%. Despite this, the new deal is said to be a "huge win" for UFC athletes and fans.
In summary, starting in 2026, UFC events (13 numbered events + 30 Fight Nights annually) will be exclusively streamed on Paramount+, with some marquee events simultaneously broadcast on CBS, ending the traditional PPV system and providing all UFC live content under one streaming subscription.
The historic deal between UFC and Paramount will introduce a new chapter for mixed-martial-arts fans in the United States, as all 43 UFC events will be available for streaming on Paramount+ starting in 2026, marking the end of the traditional pay-per-view model. Furthermore, some numbered events will also be simulcast on CBS, expanding the reach of mixed-martial-arts on these platforms.
