When the UFC began negotiating its new broadcast deal, many expected Netflix to be the frontrunner. After all, the streaming giant had already inked a massive 10-year, $5 billion deal for WWE's Monday Night Raw, and both UFC and WWE operate under the same parent company, TKO Group Holdings.
Yet the deal that ultimately landed was with Paramount CBS: a staggering $7.7 billion agreement covering all UFC events for the next seven years. While the size of the deal shocked the industry, TKO president and COO Mark Shapiro has now revealed why Netflix ultimately passed on the UFC.
The key reason? Volume. Netflix, Shapiro explains now on The Varsity podcast, was only interested in marquee UFC events (the numbered pay-per-views) and had no interest in carrying the promotion's full slate of Fight Night shows.
"There was one moment of disappointment," Shapiro said. "We were getting pretty close with Netflix, frankly. They stood by the fact that they didn't want the volume... They were looking for big events. You could give us one pay-per-view, we'll pay premium, but we don't want to carry the other 30 Fight Nights."
Netflix has only recently dipped its toes into live sports, and its strategy focuses on singular, high-profile events rather than season-long coverage. This approach has worked for the streamer with events like the Jake Paul vs. Mike Tyson card and limited NFL games. UFC's regular monthly events, however, didn't fit that model.
Shapiro added that while the UFC was open to splitting its broadcast rights among multiple partners, that was never ideal. Paramount's proposal to take the entire portfolio of UFC events (including Fight Nights) offered both scale and promotion across CBS and Paramount+, making it the better fit.
"When CBS/Paramount came knocking saying they'd play on all of it... that vision was too good to pass up," Shapiro said. For fans, Paramount's deal also comes with the perk of removing pay-per-view fees for major UFC events, making it more accessible to casual viewers and potentially cutting down on piracy.
In short, Netflix could have broadcast UFC, but the streaming giant's focus on marquee events clashed with the UFC's high-volume schedule. Paramount's full-package approach, on the other hand, ticked all the boxes, and secured the record-breaking $7.7 billion deal. Do you think it was the right decision?