Dazn operating with $4.6 Billion Deficit. Funding groups backing out

Funny how people said this about PBC. The group that co-funded Dazn is pulling their investment. Dentsu Aegis is pulling their funding after reports show even with new subscriber rates Dazn has yet to capture even 1% of the US sports viewing audience. Word is Dazn is now going to be sold to a tech company. What a complete bust! From Midia Reserch below: “Diversification or overextension? According to SportsPro, DAZN has four million paying subscribers, but investments in growing out its international rights portfolio has seen outgoings double to $336.6 million. While DAZN has successfully acquired rights from the largest and most valuable rightsholders globally, enticing four million subscribers into its ecosystem does not justify the outlay, with DAZN Group’s total rights commitments as of April 2019 at $6.1 billion beyond five years. Hypothetically, even if DAZN retains all four million over the next five years at the new US annual subscription price of $99.99, subscription revenue would only generate $1.5 billion – allowing for a 25% churn rate in subscriptions with no further growth in subscriptions factored in. A $4.6 billion deficit doesn’t even factor in the cost of acquiring new premium domestic rights which DAZN must employ to improve its acquisition funnel, highlighting the uphill battle DAZN faces. The pendulum is swinging against DAZN The magnitude of these undertakings could ultimately force DAZN into making a distressed sale or becoming an acquisition target for a tech major or a company with the appetite and financial resources to acquire DAZN’s assets and endure the losses while it builds (bundles) out a truly viable content proposition for sports fans.”