In a bold move that underscores the escalating battle for premium sports content in the streaming era, Paramount Global has secured a landmark seven-year deal with the Ultimate Fighting Championship (UFC), valued at $7.7 billion, to become the exclusive U.S. home for the mixed martial arts promotion starting in 2026. This agreement, announced on Monday, marks a significant shift away from the UFC’s current partnership with ESPN, which expires at the end of 2025 and has relied heavily on a pay-per-view model for its biggest events. Under the new terms, all UFC fights—including 30 “Fight Nights” and 13 marquee pay-per-view-caliber cards annually—will be available to Paramount+ subscribers without additional fees, effectively dismantling the PPV structure that has defined UFC broadcasting for years.

The deal arrives amid Paramount’s recent merger with Skydance Media, completed just last week, positioning it as an early triumph for new Chairman and CEO David Ellison. Ellison, who founded Skydance nearly two decades ago, emphasized in a statement that live sports are pivotal to driving subscriber engagement and loyalty across Paramount’s linear and digital platforms. This acquisition not only bolsters Paramount+’s content library but also integrates select events for simulcast on CBS, potentially expanding reach to traditional broadcast audiences.

The End of Pay-Per-View and Its Industry Ramifications

Industry executives view this as a watershed moment, with TKO Group Holdings—the parent company of UFC—declaring the PPV model “outdated and antiquated,” as noted by its president and COO Mark Shapiro in an interview referenced by CNBC. By folding all events into a standard subscription, Paramount aims to simplify access and boost retention, a strategy that aligns with broader trends where streaming services seek to monetize sports through bundled offerings rather than à la carte purchases. For UFC fans, this means no more shelling out $70 or more per major fight; instead, the content will be part of Paramount+’s existing tiers, though details remain unclear on whether it will be restricted to the $12.99 Premium plan or included in the $7.99 Essential option.

Comparisons to other sports rights deals highlight the deal’s scale: ESPN’s current UFC contract, averaging $500 million annually, pales against Paramount’s commitment of about $1.1 billion per year. As reported by Sportico, Paramount and CBS will air 43 UFC events yearly, signaling a aggressive push into combat sports at a time when competitors like Apple are eyeing Formula 1 rights and Disney’s ESPN+ continues to dominate with its UFC hold until the handover.

Strategic Wins for Paramount in a Competitive Market

For Paramount, fresh off its Skydance merger, this UFC pact represents a calculated bet on live events to stem subscriber churn and differentiate from rivals like Netflix, which has dabbled in sports but avoided full leagues. According to insights from The Verge, the move joins an “industry-wide race” for remaining sports streaming rights, with Paramount leveraging its broadcast arm to offer a hybrid model that could attract advertisers seeking broad exposure. Analysts suggest this could accelerate Paramount+’s growth, especially as it integrates UFC’s year-round schedule, which promises consistent programming to keep viewers hooked.

Yet, challenges loom: the deal’s success hinges on seamless integration and avoiding the technical glitches that have plagued some streaming sports broadcasts. UFC President Dana White, in announcements covered by The Independent, hailed the partnership as a fan-friendly evolution, but insiders question if eliminating PPV revenue—historically a cash cow for UFC—might pressure pricing models elsewhere.

Looking Ahead: Broader Implications for Sports Media

As the UFC transitions to Paramount+ in 2026, the deal could reshape how combat sports are consumed, potentially inspiring similar shifts in boxing or wrestling. Publications like The New York Times frame it as an “early win” for Ellison’s leadership, underscoring Paramount’s ambition to build a sports powerhouse. With CBS simulcasts for high-profile fights, the arrangement blends old and new media, offering a blueprint for others navigating the post-cable world. Ultimately, this $7.7 billion investment bets big on UFC’s global appeal, aiming to convert casual viewers into loyal subscribers in an increasingly fragmented entertainment arena.