UFC Agreement Accelerates Subscriber Growth for Paramount+
In a significant shift for the sports entertainment industry, Paramount+ has secured a seven-year, $7.7 billion deal with the Ultimate Fighting Championship (UFC), marking the end of the pay-per-view era for UFC events.
Starting from 2026, Paramount+ will become the exclusive streaming home for all UFC events in the U.S., greatly expanding its content offerings to subscribers. This includes live streaming of 13 marquee UFC numbered events and 30 Fight Nights annually on Paramount+, with select marquee events also simulcast on CBS.
This move aims to broaden UFC's reach by transitioning from the traditional pay-per-view model to a streaming-first distribution on Paramount+. As a result, Paramount+ subscribers will gain access to the entire UFC live event slate as part of their subscription, potentially increasing demand and subscriber growth for the service due to UFC's dedicated fanbase.
The deal is expected to significantly boost Paramount+'s value proposition, delivering premium, high-profile live sports content. This should attract more subscribers and improve viewer engagement on the streaming platform.
The UFC deal is not the only notable change for Paramount+. The streaming service recently closed the second quarter of 2025 with 77.7 million subscribers, a significant increase from its previous quarter. Meanwhile, NBCUniversal's Peacock closed at 41 million subs as of the second quarter of the same year.
The merger between Paramount and Skydance, valued at $8.4 billion, is another strategic move aimed at strengthening Paramount's position in the streaming market. The new entity is overseen by former NBCUniversal CEO Jeff Shell, who serves as president, and RedBird Capital Partners' Andy Gordon, who serves as chief strategy officer and COO.
RedBird Capital Partners, known for its high-octane sports properties such as AC Milan and Liverpool FC, has an estimated $2 billion stake in the new entity. The annual payout for the UFC rights by Paramount is twice as rich as ESPN's current rights fee, indicating a strong commitment to sports content.
Notably, the NFL continues to account for the lion's share of Paramount+ sports traffic. However, the UFC deal is expected to help Paramount+ gain ground on other streaming services, particularly given the popularity of UFC among fans.
One of the most streamed original shows in the first half of 2025 was the Yellowstone prequel 1923, which ranked sixth, while Landman ranked tenth. Additionally, SpongeBob SquarePants was the sixth biggest streaming draw during the same period.
With these strategic moves, Paramount+ is positioning itself as a major player in the streaming market, offering a diverse range of content to its subscribers. The UFC deal is a significant step in this direction, providing Paramount+ with premium live sports content and a wider audience.
[1] Source: Variety, July 1, 2025 [3] Source: The Hollywood Reporter, July 1, 2025
The UFC deal will not only enhance Paramount+'s content offerings, encompassing live streaming of various UFC events, but also strengthen its value proposition by delivering premium live sports content to entice more subscribers and improve viewer engagement. In the world of technology-driven investing, RedBird Capital Partners, known for its investments in sports properties such as AC Milan and Liverpool FC, has a significant $2 billion stake in the new entity formed by Paramount's merger with Skydance.
