Negotiations for the UFC`s next broadcast rights deal are underway, and while the UFC is open to offers, Netflix might not be in the running.
With their seven-year contract with ESPN ending in 2025, the UFC is reportedly seeking around $1 billion annually for their new broadcast rights. After WWE signed a significant 5-year, $10 billion deal to bring Monday Night Raw to Netflix, speculation arose that the UFC, also owned by TKO Group Holdings, might follow suit.
However, Netflix co-CEO Ted Sarandos, when questioned about Netflix`s interest in UFC or other sports rights like Major League Baseball, indicated that the streaming platform is primarily focused on individual, major events rather than investing in comprehensive broadcast rights packages.
“I won’t comment on specific opportunities right now,” Sarandos stated during an investor call, addressing questions about UFC and other sports properties. “But our live event strategy remains focused on big, impactful events. Our audience enjoys them.”
Sarandos added, “Any venture into events or sports must be economically sound. Live content is a relatively small portion of our spending and viewing hours. However, live events generate significant buzz, attract new subscribers, and potentially improve retention. We’re excited to continue building in this area.”
Past “big events” for Netflix include the Jake Paul vs. Mike Tyson boxing match, which garnered over 235 million viewing hours, surpassing viewership of some NFL Christmas Day games.
Netflix also saw success with The Roast of Tom Brady, a live event featuring comedians, former teammates, and UFC CEO Dana White humorously teasing the NFL star.
Netflix’s upcoming live event is a rematch between boxers Katie Taylor and Amanda Serrano in July at Madison Square Garden. Sarandos suggested that Netflix is more inclined towards these types of events rather than large investments in full sports rights packages, unless their strategy changes.
“We have the Taylor-Serrano fight in July, a rematch from their first fight on the Tyson-Paul fight night. It was the most-watched women’s sporting event in US history,” Sarandos noted. “The NFL is also a great property, and we’re pleased to have the Christmas Day games, presenting all-day football again on December 25, 2025. It’s very exciting.”
“Currently, our live events are primarily in the US, but we plan to expand this capability globally in the coming years. We are very happy with our progress and excited about the future of live sports and non-sports events.”
A major factor deterring Netflix from large live sports investments has been the seasonal nature of sports leagues, potentially leading to subscriber churn when seasons end.
This isn`t as much of a concern with the UFC, which holds over 40 events annually, including high-interest pay-per-view events on a monthly basis.
Despite Sarandos`s cautious approach to sports rights packages, Netflix did make a significant investment in WWE programming, a move that surprised many.
Could Netflix potentially partner with the UFC in a similar fashion? Only time will tell.
