As the UFC’s ESPN broadcast deal nears its 2025 expiration, Netflix emerges as a potential partner with its growing interest in live sports, including a recent WWE partnership, while considering the financial viability of acquiring UFC rights.
The UFC is on the brink of a monumental year, with a fresh broadcast rights deal looming. Netflix has popped up as a promising partner.
Right now, the UFC’s deal with ESPN lasts until the end of 2025. There’s an exclusive window for negotiations with ESPN until April 15. After that? The bidding war begins, and many think Netflix might be the best fit.
Netflix just added a whopping 19 million subscribers in late 2024, reaching 302 million globally. They’ve also signed a massive $5 billion deal with WWE for Monday Night Raw. Fun fact: WWE and UFC share the same parent company, TKO Group Holdings.
Netflix’s co-CEO Ted Sarandos kept mum about UFC rights but praised their budding relationship with WWE.
“Can’t say much about UFC,” Sarandos mentioned on a financial call. “But WWE’s off to a stellar start.” The first week saw viewership double compared to traditional TV. Even non-live views jumped by 25%, especially outside U.S. time zones.
He noted new viewership spikes in places like the U.K., Canada, Mexico, Australia, and Brazil. In the U.S., Monday Night Raw hit its highest numbers in five years!
The UFC aims for a significant bump in its next broadcast rights deal—over $1 billion annually! They might even bundle pay-per-view events without extra charges if the price is right.
Consider this: Netflix streamed Jake Paul vs. Mike Tyson for free to subscribers, drawing over 100 million viewers. They called it “the most streamed sporting event ever” for Q4 of 2024.
Netflix is diving deeper into live sports, recently airing two NFL games on Christmas with impressive viewership numbers—30 and 31 million each.
“We’re broadening our programming,” Sarandos said. “Live events are key, and sports are a big part of that.” But he admits full-season sports economics are tricky.
“If we can make the economics work, we’re interested,” he added. For now, live events remain their focus.
What makes UFC tempting is its year-round action—no offseason means constant content flow.
Sarandos pointed out financial challenges with seasonal sports leagues. This suggests UFC could be more viable than major leagues like football or basketball.
“We’re cautious about finances,” Sarandos emphasized. “Big league sports are tough economically.”
“We want to add value to sports like we’ve done with WWE and NFL,” he concluded. A young, global audience is key, but deals must reflect that value too.