Paramount Secures Exclusive U.S. UFC Rights in Historic $7.7 Billion Agreement

Following its merger with Skydance Media, Paramount has finalized a landmark deal to obtain exclusive U.S. broadcasting rights for UFC events under TKO Group starting in 2026. This seven-year contract is valued at an average of $1.1 billion per year,culminating in a total worth of approximately $7.7 billion.

Revolutionizing UFC Access and Streaming Experience

This agreement grants Paramount sole streaming rights to all 13 premium UFC numbered events and roughly 30 Fight Night cards annually within the United States. Fans will be able to watch these fights on Paramount+ without incurring additional pay-per-view fees, marking a significant departure from ESPN+’s previous model that required separate payments for select high-profile bouts.

The elimination of traditional pay-per-view charges makes it more affordable and convenient for fans across the country-especially younger audiences outside major metropolitan areas-to follow every major fight by subscribing to Paramount+ at a monthly cost of $12.99.

Shifting Paradigms in Sports Broadcasting

Mark Shapiro, President and COO of TKO Group, noted that the pay-per-view format is becoming increasingly outdated: “While boxing still occasionally relies on it, even DirecTV’s movie offerings are moving away from this approach.” He emphasized how consolidating all UFC content into one subscription service aligns perfectly with modern consumer preferences for seamless access.

Navigating Competitive Sports Media Rights Landscape

This acquisition comes amid significant shifts in global sports media rights deals-Formula 1’s broadcast rights are expected to transition toward Apple TV+, while Major League Baseball has deferred major negotiations until 2028-making premier live sports properties like UFC highly sought-after assets for streaming platforms aiming to boost subscriber numbers.

David Ellison, CEO of Skydance Media following its merger with Paramount, described securing full U.S. rights as crucial given the scarcity of top-tier live sports content available over the coming years.

“UFC represents a rare ‘unicorn’ asset that emerges only once every decade,” Ellison remarked enthusiastically as a longtime fan himself.

Sustained viewer Engagement Through Year-Round Events

The strength of UFC lies not only in its widespread popularity but also its consistent event schedule throughout the year-with about 43 live shows annually totaling nearly 350 hours of programming-wich helps maintain steady subscriber retention by minimizing seasonal drop-offs common among other leagues.

Global Expansion Strategy and Negotiation Flexibility

Apart from domestic broadcasting rights, Paramount aims to secure international distribution agreements covering over 210 countries where UFC currently airs matches worldwide. These global contracts become available incrementally each year as existing deals expire or renew.

TKO Group offers Paramount an exclusive 30-day negotiation window country-by-country when these international contracts come up-a strategic move designed to maximize reach while preserving adaptability across diverse markets worldwide.

A Swiftly Executed deal Reflecting Market Urgency

The rapid pace at which this comprehensive agreement was reached was remarkable: initially expecting partial sales such as Fight Nights going to different partners, TKO quickly pivoted after Skydance-Paramount’s merger closed last Thursday-finalizing unified distribution under one platform within just two days due to aligned interests on both sides seeking streamlined access for fans nationwide.

TKO’s Growing Portfolio Bolsters Market Influence

• A recent five-year deal worth $1.6 billion between TKO and ESPN for WWE’s premium live events complements their expanding portfolio following last year’s WWE-UFC merger under TKO;
• This diversified content mix strengthens bargaining power during future media negotiations;
• Ariel Emanuel (TKO CEO) highlighted how these partnerships effectively drive subscription growth-a critical metric underpinning long-term success for streaming services;
• The integration supports David Ellison’s vision prioritizing subscriber acquisition through compelling live entertainment assets rather than fragmented licensing agreements;
• This consolidation mirrors broader industry trends favoring exclusive multi-event packages instead of piecemeal broadcast arrangements prevalent just years ago;

The Road Ahead: Subscription Growth Fueled by Brand Synergy

“By leveraging strong brand recognition alongside extensive audience reach,”

“we expect considerable increases in signups driven by passionate fight fans eager for uninterrupted access,”

“Mark Shapiro shared during discussions about ongoing collaboration.”