As the UFC prepares to negotiate its next broadcast rights deal, Netflix`s co-CEO has indicated that the streaming giant may not be a leading contender.
With the UFC`s seven-year contract with ESPN ending in 2025, the organization is reportedly seeking around $1 billion annually for its new broadcast rights. Following WWE`s substantial 5-year, $10 billion agreement to bring Monday Night Raw to Netflix, speculation arose about a similar deal for the UFC, given both are under TKO Group Holdings.
However, when questioned about Netflix`s interest in UFC or other sports rights like Major League Baseball, co-CEO Ted Sarandos suggested the company remains primarily focused on individual, high-impact events rather than investing in extensive broadcast rights packages.
“I’m not going to comment on any of those specific opportunities at this time,” Sarandos stated during an investors’ call, addressing questions about UFC and other sports properties. “But I will point you back to our statement that our live event strategy remains consistent. We are very focused on major, impactful events that our audience loves.”
“Any venture into events or sports must also be economically viable. Live content is still a relatively small portion of our content expenditure. We have around 200 billion view hours, making it a small fraction in terms of total viewing time. However, not all viewing is equal. We`ve observed significant positive impacts from live events, particularly in terms of generating conversation, attracting new subscribers, and potentially improving retention. We are excited to continue building on this.”
Past “big, breakthrough events” for Netflix include the boxing match between Jake Paul and Mike Tyson, which garnered over 235 million watch 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 targeting the NFL star.
Netflix`s upcoming live event is a boxing rematch between Katie Taylor and Amanda Serrano in July at Madison Square Garden in New York. Sarandos` remarks suggest that, unless their strategy shifts, Netflix is more inclined towards these types of events rather than a comprehensive sports rights investment.
“We have the Taylor-Serrano fight in July. It’s a rematch from their first fight on the Tyson-Paul fight night. It became the most-watched women’s sporting event in U.S. history,” Sarandos noted. “The NFL is also a valuable property. We`re pleased to host the Christmas Day games, having opted for the second NFL game on Christmas Day, so we’ll be presenting all-day football again on December 25, 2025. It’s very exciting.”
“Currently, our live event initiatives have mainly been in the U.S., but we plan to expand this capability globally in the coming years. We are very satisfied with our progress and enthusiastic about the future of live sports and non-sports events.”
A primary factor deterring Netflix from major investments in live sports has been the seasonal nature of many leagues, potentially leading to subscriber churn after seasons conclude.
This concern is less relevant with the UFC, which offers over 40 events annually, including high-interest pay-per-view cards on a monthly basis.
Despite Sarandos` cautious tone regarding deeper involvement in sports rights packages, Netflix`s significant investment in WWE programming was largely unexpected when it occurred.
Could a similar surprise be in store with Netflix and the UFC?
Marcus Blakely