As the UFC prepares to negotiate its next broadcast rights agreement, with its seven-year deal with ESPN concluding at the end of 2025, questions arise about Netflix`s potential involvement.
The UFC is reportedly seeking around $1 billion annually for its new broadcast rights. Following WWE`s significant 5-year, $10 billion deal to bring Monday Night Raw to Netflix, speculation arose about a similar move for the UFC, given that both are under TKO Group Holdings.
However, Netflix co-CEO Ted Sarandos, when questioned about Netflix`s interest in UFC or other sports rights like Major League Baseball, suggested a continued focus on individual, high-impact events rather than comprehensive broadcast rights packages.
During an investor call, Sarandos declined to comment on specific opportunities like UFC, reiterating that Netflix`s live event strategy remains centered on “big, breakthrough events” that resonate strongly with their audience.
Sarandos noted that while live events constitute a small portion of their content spending and viewing hours, they generate significant positive buzz, attract new subscribers, and potentially improve retention. This makes them valuable to Netflix.
Past “big events” for Netflix include the Jake Paul vs. Mike Tyson boxing match, which garnered over 235 million viewing hours, surpassing even NFL games.
Netflix also found success with The Roast of Tom Brady, a live event featuring comedians and sports figures making light of the NFL star.
Looking ahead, Netflix will host a rematch between boxers Katie Taylor and Amanda Serrano in July. Sarandos` comments suggest that Netflix is more inclined towards these types of events than committing to extensive sports rights deals.
Sarandos highlighted the upcoming Taylor-Serrano fight, a rematch of a bout that previously became the most-watched women`s sporting event in U.S. history. He also mentioned their acquisition of NFL Christmas day games for 2025.
Netflix aims to expand its live event capabilities globally, building on its current U.S.-centric approach.
One reason Netflix has been hesitant to invest heavily in live sports is the seasonal nature of many leagues, which could lead to subscriber churn after seasons end.
This is less of a concern with the UFC, which offers over 40 events annually, including high-interest pay-per-view events throughout the year.
Despite downplaying broad sports rights acquisitions, Netflix`s significant investment in WWE programming demonstrates a capacity for unexpected moves in the sports and entertainment landscape.
Whether this could extend to a partnership with the UFC remains to be seen.
