Paramount+ Poised for 2026 Price Increase Following Landmark UFC Broadcast Rights Acquisition

Paramount+ is set to implement a price increase for its subscribers in the first quarter of 2026, a strategic move coinciding with the exclusive debut of the Ultimate Fighting Championship (UFC) on the streaming platform. This adjustment reflects Paramount Global’s substantial investment in premium live sports content, aimed at driving subscriber growth and enhancing user engagement.

The impending price hike, though not yet specified in exact figures, was disclosed by Paramount Skydance CEO David Ellison in a recent letter to investors. The current Paramount+ essential plan, which includes advertisements, is priced at $7.99 per month or $59.99 annually. The premium, ad-free tier, excluding live television options, costs $12.99 per month or $119.99 per year. The company has previously announced similar price adjustments for its services in Canada and Australia, signaling a broader strategy to recalibrate pricing in line with its expanding content offerings.

Ellison emphasized the company’s commitment to delivering enhanced value to consumers through continuous investment. "Our ongoing investments in Paramount+ are enhancing the value we deliver to consumers," Ellison stated. "To support this continued investment, we plan to implement price increases in the U.S. early in the first quarter of 2026. These changes will fuel continued reinvestment in the user experience and deliver an even stronger slate of programming for our customers in the year ahead and beyond." This sentiment underscores a common industry trend where streaming services, grappling with rising content costs and the pursuit of profitability, are increasingly passing some of these expenses onto consumers.

The cornerstone of this strategic shift is the UFC, which will transition its entire programming slate to Paramount+ starting in January 2026. This move follows the expiration of the UFC’s current broadcast agreement with ESPN. The new seven-year deal, valued at an estimated $7.7 billion, represents one of the largest sports media rights agreements in recent history, positioning Paramount+ as the exclusive digital home for the premier mixed martial arts promotion.

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A significant aspect of this new arrangement is the elimination of the traditional pay-per-view (PPV) model for UFC numbered events. Under the previous ESPN+ deal, fans were required to pay an additional fee—typically around $79.99—on top of their ESPN+ subscription to access major fight cards. With the Paramount+ deal, all UFC events, including the highly anticipated numbered PPV cards, will be available exclusively to Paramount+ subscribers at no additional cost beyond their standard subscription fee.

Ellison highlighted the transformative nature of this change for UFC fans. "By removing the secondary pay-per-view paywall – historically a key barrier for UFC fans – we’re making these premium events available to every Paramount+ subscriber at no additional cost," he explained. "We’re excited to deliver this exceptional value with the cost of an annual subscription to Paramount+ being less than just one UFC pay-per-view event under prior distribution." This direct comparison underscores the perceived value proposition for consumers, potentially lowering the barrier to entry for a significant segment of the UFC’s vast fanbase. Paramount Global anticipates that this enhanced accessibility will translate into substantial incremental subscriber growth and increased engagement across its platform, creating long-term value for both Paramount and the UFC.

The decision to invest heavily in the UFC aligns with Paramount’s broader strategy to combat subscriber churn, a persistent challenge in the competitive streaming landscape. During an earnings investment call, Paramount executives emphasized the UFC’s unique appeal as a year-round sport with virtually no off-season. This consistent programming schedule is seen as a potent tool for retaining subscribers. Executives noted that Paramount+ had previously experienced subscriber losses following the conclusion of major seasonal events like the Masters golf tournament and prior to the start of the NFL season. The hope is that the continuous flow of UFC content, with events typically held multiple times a month, will provide a compelling reason for subscribers to maintain their subscriptions throughout the year, thereby stabilizing subscriber numbers and fostering greater loyalty.

Beyond the UFC, Paramount is also expanding its combat sports portfolio with the inclusion of Zuffa Boxing, a new promotion spearheaded by UFC CEO Dana White and WWE President Nick Khan. This venture, backed by funding from Saudi Arabia, is set to host a multitude of boxing events annually, further solidifying Paramount+’s position as a premier destination for combat sports enthusiasts. Ellison underscored this synergy during the call: "We could not be more excited about our partnership with TKO, Dana White and UFC and look, I’d also loop into that Zuffa Boxing. Those two deals obviously makes Paramount+ really the home for combat sports. Obviously in the United States and we also have rights in Latin America and Australia."

Ellison further elaborated on the strategic importance of the UFC, describing it as a "unicorn sports property" due to its scale and the fact that it is "the largest sport that is not basically split off across multiple platforms." He projected that this exclusivity would drive "a tremendous amount of value in terms of both subscriber growth and engagement across Paramount+ as well as CBS where there will be some aspect of the UFC that also lives on CBS." This dual-platform approach aims to leverage the broad reach of traditional broadcast television while simultaneously bolstering the streaming service.

The UFC’s impressive growth trajectory also played a significant role in Paramount’s investment decision. Ellison cited statistics indicating that the sport boasts "100 million fans in the U.S. alone" and has grown by "25 percent since 2019 to today." This growth, he pointed out, occurred despite the "double paywall" model previously in place. The expectation is that removing this barrier will accelerate the sport’s growth rate and make it significantly more accessible to a wider audience. The value proposition for consumers, where an annual Paramount+ subscription costs less than a single UFC pay-per-view event under the prior model, is central to Paramount’s strategy for attracting and retaining subscribers.

This substantial investment in live sports content is a direct reflection of David Ellison’s strategic vision for Paramount Global, particularly following the completion of the merger to combine Paramount with Skydance Media. Ellison has consistently championed the philosophy of "content is king" as the guiding principle for future investments. The acquisition of UFC rights aligns perfectly with this ethos, emphasizing the need to invest in high-demand, exclusive programming to differentiate Paramount+ in a crowded streaming market.

In addition to the landmark deals with the UFC and Zuffa Boxing on the sports front, Paramount has also secured other significant content agreements. These include collaborations with the creators behind the critically acclaimed animated series South Park and with Matt and Ross Duffer, the creative minds behind Netflix’s global hit Stranger Things. These investments across diverse content genres underscore Paramount’s commitment to building a robust and appealing content library that caters to a wide array of consumer interests.

Ellison reiterated the imperative for continued content investment: "We need to obviously invest in more content. Having an asset like the UFC is going to increase engagement on platform, it’s going to drive subscribers and we’re feeling incredibly confident in the investment that we just made." This confidence is rooted in the proven ability of live sports to attract and retain subscribers, a phenomenon increasingly vital for streaming services seeking sustainable growth and profitability in an evolving media landscape. The upcoming price increase for Paramount+ in 2026 is therefore presented not merely as a cost adjustment, but as a necessary step to support and capitalize on these strategic content acquisitions, with the UFC at the forefront.