Source: The Athletic
At UFC 306 at the Sphere in Las Vegas last year, some of the biggest names in media gathered in the luxury suite of TKO Holdings, the parent company of UFC and WWE. Among them were Amazon founder Jeff Bezos, Disney CEO Bob Iger, and Skydance CEO David Ellison — who was on the verge of becoming Paramount’s new leader through the company’s acquisition.
According to The Athletic, Ellison used that moment to share his long-term vision for turning Paramount into a dominant force in the media space. That ambition is now a reality, and it’s reshaping the way fans will experience sports.
Paramount’s UFC Power Play
This week, Ellison made headlines by striking a landmark deal for the U.S. rights to UFC. Paramount/CBS will take over from ESPN, doubling the previous rights fee with a staggering $1.1 billion per year commitment. The move eliminates UFC’s traditional pay-per-view model, bundling all 43 annual events into a single Paramount+ subscription starting in 2026.
By shifting to a monthly subscription model — currently priced at $7.99 with ads or $60 annually — the UFC aims to reach a broader audience and reduce piracy, which has long plagued high-priced one-off events. As TKO president Mark Shapiro noted, the $80-per-event price point had become a barrier for casual fans.
The partnership also includes select major UFC events airing on CBS, expanding the sport’s reach to broadcast television.
ESPN’s Counterpunch
Paramount isn’t the only traditional media giant refusing to concede ground to digital-native competitors like Amazon, Netflix, YouTube, and Apple. ESPN is reimagining its place in the streaming era, preparing to launch its direct-to-consumer “Next Era” platform on August 21.
In recent weeks, ESPN has:
- Expanded its NFL rights, now airing 28 regular season games annually
- Integrated NFL Network, RedZone, and the NFL Draft into its offerings
- Added WWE’s premium live events, including WrestleMania
- Partnered with Fox One to offer a bundled sports package at $40 per month, saving consumers $10 compared to separate subscriptions
This “Great Rebundling” strategy mirrors trends across the industry, as networks try to simplify access while offering modest cost savings to sports fans.
Wrestling, Football, and the New Sports Streaming Landscape
The UFC’s shift away from pay-per-view mirrors WWE’s earlier move to streaming-first distribution, first with NBC’s Peacock and now with ESPN. The model is designed to boost accessibility, increase audience size, and create a steady subscription revenue stream rather than relying on occasional big-event spikes.
Meanwhile, ESPN’s new bundle covers the vast majority of high-profile college football, while Paramount gains a major combat sports property to sit alongside CBS’s NFL broadcasts.
A High-Stakes Streaming War
The sports media marketplace is now a battleground involving both legacy giants and digital disruptors. NBC/Peacock and Amazon are preparing for the NBA’s arrival this fall, YouTube is launching its first NFL game, Fox has invested in IndyCar, and TNT Sports is adding more college football. DAZN and Netflix are also circling with aggressive strategies.
What was once expected to be a digital-first takeover is now shaping into a hybrid era where traditional networks are revitalizing themselves through bold rights acquisitions and new business models.
In the words of The Athletic, this is a “battle royale cage match” for the future of sports media — with Paramount, ESPN, Disney, Fox, NBC, Amazon, Netflix, YouTube, and others all vying for dominance.
