ESPN+ subscribers decline before UFC broadcast deal talks

The UFC is gearing up for negotiations on a new broadcast rights deal later in 2024, but its current partner ESPN is facing challenges in the ever-evolving sports consumption market.

ESPN+, the primary platform for UFC pay-per-view events, saw a two-percent drop in subscribers in the second quarter of 2024, bringing the total number of subscriptions to 24.8 million. This decline marks the second consecutive quarter of subscriber losses for ESPN+ and has resulted in a $65 million operating loss for the streaming service.

While ESPN attributed the drop in subscriptions to the end of the football season, the network had been experiencing steady growth over the past five years. Despite these challenges, ESPN reported overall ratings success in April, with record viewership for a UFC preliminary broadcast.

Disney CEO Bob Iger has outlined plans to transition ESPN into a more digitally driven business, with the launch of a direct-to-consumer streaming platform in 2025. Additionally, Disney is set to launch a sports streaming service in late 2024 in partnership with Warner Bros. Discovery and FOX.

As negotiations for a new broadcast rights deal with the UFC loom, the impact of ESPN’s subscriber decline remains uncertain. The current deal between the UFC and ESPN is set to expire in 2025, and talks for a new agreement are expected to commence before the end of the year.

It remains to be seen how ESPN’s struggles in the streaming market will influence the upcoming negotiations and the future of the UFC’s broadcasting partnerships.