As the UFC explores new partnerships for its broadcasting rights, with their ESPN contract ending in 2025, Netflix`s position remains unclear. The UFC is reportedly seeking around $1 billion annually for its next rights deal.
Following WWE`s significant 5-year, $10 billion agreement to bring “Monday Night Raw” to Netflix, speculation arose about a similar move for the UFC, given both are under TKO Group Holdings.
However, Netflix co-CEO Ted Sarandos, when questioned about Netflix`s interest in acquiring UFC or other sports rights like Major League Baseball, indicated a continued focus on individual, high-impact events rather than comprehensive broadcast rights packages.
Sarandos declined to comment on specific opportunities during an investor call but reiterated that Netflix`s live event strategy remains centered on “big, breakthrough events” that resonate strongly with their audience.
He emphasized that any venture into live events or sports must be economically viable for Netflix. Live content represents a relatively small portion of their overall content spending and viewing hours. Yet, live events generate significant buzz, attract new subscribers, and potentially improve subscriber retention.
Netflix`s past “big, breakthrough events” include the Jake Paul vs. Mike Tyson boxing match, which surpassed 235 million viewing hours, exceeding viewership of some NFL games.
Another successful live event was “The Roast of Tom Brady,” featuring comedians and celebrities, including UFC CEO Dana White.
Netflix`s upcoming live event is a boxing rematch between Katie Taylor and Amanda Serrano in July. Sarandos`s remarks suggest Netflix is more inclined towards these types of events rather than a large-scale investment in sports rights packages, unless their strategy shifts.
Sarandos highlighted the Taylor-Serrano fight, a rematch of the most-watched women`s sporting event in US history, which was part of the Tyson-Paul fight night. He also mentioned their acquisition of NFL Christmas Day games for 2025.
He added that Netflix aims to expand its live event capabilities globally, expressing satisfaction with their progress and enthusiasm for the future of live sports and non-sports content.
A primary reason for Netflix`s previous reluctance towards major sports investments is the seasonal nature of leagues, potentially leading to subscriber churn after seasons conclude.
The UFC, with over 40 events annually, including high-interest pay-per-views each month, might seem like a better fit, mitigating the seasonality issue.
Despite Sarandos`s cautious tone regarding broader sports rights, Netflix`s unexpected major investment in WWE programming demonstrates their capacity for surprising moves.
Whether Netflix might pursue a similar deal with the UFC remains to be seen.
