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

[pillowfists98]

Where does it say that funding groups are backing out??

[Thuglife Nelo]

You did almost the same thing. You posted an article then blatantly lied about what was stated and then exaggerated about the total number of subscribers.

If he should be banned permanently for lying and having an agenda, so should you!

He is playing the same game you and frankie0jobs is.

Just because your dad is a midget, doesn’t mean you have to cry that trolls are getting nervous about Showtime and PBC ratings... that a fake DAZN hate thread needs to be made and you mention my name...

I’m on vacation talking about DAZN. I did my part, easy work. Here and there I will remind many about the fruits of DAZN.

Dees nuts.

[Justintimothyko]

If true that the thread starter is lying, that is absolutely disguisting, pathetic, n disrespectful to boxing. Personally, I love DAZN n have no issues/complaints SO FAR.

[Robbie Barrett]

Here's the full article. Which the TS didn;t want you to see.

DAZN, the sports-centric streaming service which made headlines in 2018 with several high-profile rights acquisitions, and according to documents seen by SportsPro Media, has managed to dramatically reduce its debt burden by 93% in the year up to 2018.

DAZN’s borrowing reduced from $980 million to $275 million from 2017 to 2018, thanks largely to the $2.2 billion in funding which DAZN has received since its 2016 launch. Len Blavatnik’s Access Industries Group, DAZNs parent company, invested $848 million into DAZN in 2018, and Japanese agency Dentsu Aegis has also invested a further $391 million.

SportsPro Media reported that DAZN’s revenue increased 136.2% from 2017 to 2018 to $277.6 million. The DAZN group also saw advertising revenue across its sports properties (including Goal, Sporting News and Spox) rise by 4.4% to $77.2 million. Additionally DAZN looks to increase its revenue generated through advertising in the coming year having announced in March 2019 the introduction of advertising to its streaming service.

DAZN having to play the long game internationally



Having launched in the US in September 2018 off the back of a $1 billion acquisition for 32 Matchroom Boxing fights, its combat sport-centric service has struggled to entice and retain a large subscriber base in the US. MIDiA Research’s Q1 consumer survey highlights this niche proposition struggling to appeal to fans, with only 1.0% of US consumers engaging with DAZN weekly (WAU). Fortunately these are early days for its US operations and DAZN has already built an unrivalled boxing stable with the likes of Anthony Joshua, Canelo Alvarez and GGG (Genady Golovkin) signing long-term contracts with the platform.

DAZN in November 2018 acquired a three-year live rights partnership with Major League Baseball (MLB) starting this year, which is DAZN’s best opportunity to truly ‘disrupt the status quo’ in the US. Owning premium domestic rights, which Eleven Sports’ failings demonstrated, are fundamental to forging a compelling value proposition in the key sporting markets. DAZN will be wary of competition from Disney’s ESPN+ in the US, with DAZN’s WAU penetration five times smaller than the leading US sport-centric streaming service.

DAZN entered its 9th market with its launch in Brazil last week, with a largely soccer-orientated proposition which should be well positioned to resonate with consumers. This could help increase the contribution of the Americas accounts in terms of overall company revenue, with its North American operations generating $14.3 million in 2018.

Key markets for DAZN

DAZN’s largest share of company revenue came from Asia, which saw $65.2 million in growth from 2017 to 2018 and accounted for 42% of all company revenues. Europe is another core market for DAZN, host to two of its largest markets for WAU (Spain and Germany) and subscribers, and accounting for 44% of overall platform streaming sales. If DAZN can continue to acquire premium domestic rights in these core markets, it will offer the best opportunity to disrupt the traditional broadcasters, leveraging its early mover status in these markets for streaming services.

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.

https://www.midiaresearch.com/blog/dazn-financials-highlight-difficulty-in-changing-sports-viewing-for-fans/

[Larry the boss]

I think a lot of investors bail at the beginning of most new journeys..those who stick it out either lose a lot or gain a lot...to many broke people worried about rich people's issues on here

[Fanofreason]

I have a very reliable source that The Japanese investment group is pulling out.

Dazn dropped there debt leading into 2018 and then overspent.

Now they are facing a 4.6 Billion Dollar deficit.

They did the $99 deal at time of Canelo fight as a quick cash grab. Only issue is they now have no residual revenue coming in for 12 months. Going for $240 per month to $99 a year was very desperate.

The founder has been selling off assets right and left to fund Dazn.

The business model has been a complete bust in the business world. They are spending so much on servers, and they cannot adequately stream to all internet watchers. Hence the lagging issue.

The $99 dollar deal sealed their fate.

[Sid-Knee]

This dude needs boobs. Boobs are very much something you should look into.

[Pigeons]

I call it dazen.

[monkeyboy]

I fail to see why I should give a crap. DAZN is awesome for me and I’ll watch it until it goes bust. Good luck to them.

People rooting for networks/A-sides/one-race of fighters need to get a life. I just like seeing good boxing. Anyone obsessing over networks, managers, promoters rather than the fights and fighters isn’t a boxing fan.

[deanrw]

agree about the name, but a failing business model wouldn't have been saved by it IMO. they got super ambitious and capitalized on the exodus of premium cable from boxing by picking up assets. canelo, golovkin, joshua, etc. but i don't know if it will be profitable

there are a bunch of issues with the dazn service too on my end and with other people. i tried to watch a replay the other day and it was so choppy it was unwatchable. went over to netflix and it was fine. i have a hardlined internet and it's very fast, 100% the issue was on the dazn side.

funnily, when i read it i still call it "dah-zin." i subliminally refuse to call it da zone . it's just a dumb name.

Nono bro. The Z is silent. Around these parts we just call it Dan.