DAZN's problem: They pay out PPV-caliber purses but don't earn PPV revenue

[j0zef]

They've spent more money than PBC ever did. And they can't hit a million subs, they're looking for $500 mil from investors to recoup Blatavik loses, and they cancelled their IPO and they're about to raise prices for the second time. If they were prepared to take these loses they wouldn't have had to raise the price. The loses would've been factored into the original price

Lol no, they didn't spend more money than PBC. Future commitments, yes. Currently, not even close.

We're all guessing on their subs. Nobody actually knows a damn thing. The haters will keep saying they're nowhere near 1m, but there's a ton of articles about them eclipsing that # - which may also be BS.

Securing more funding doesn't mean anything at all in regards to their financial health. Firms always look for more funding.

As for cancelled IPO, there's a million reasons for it, and in general, IPOs are no longer necessary, or at times even wanted for success of a firm. Great businesses go through so many rounds of PE funding that by the time it gets to an IPO, there's no meat left on the bone.

Not sure where you're getting that they "have to raise price". It doesn't even make sense. $20/mth is about the max a modern customer will pay for any one single service, anything over will make them lose subs. Raising price = lost total revenue. If you have a legit source that shows otherwise, please share.


DAZN is fine no matter how much you try to make it sound like it's going to fail tomorrow This thread is ~2 yrs premature.

[sicko]

Fight Fans need to focus on the action IN THE RING and stop worrying about how people who are already Wealthy will Recoup THEIR OWN MONEY! Investors are not like us, these are Wealthy people who have the $$$ to invest and wait for a return on that investment LONG TERM. Often times they lose out on Investments but they're so Wealthy it really doesn't matter to them if things don't work out.

They're not like us, fans need to understand that! They HAVE the $$$ to take chances on Investments! They're all playing the LONG GAME. If you expect a turnaround within 1 Year then you F#CKING SUCK at investing your money

[ShoulderRoll]

They won’t see any profit for a good 10 years at least ...

Wow! They must have deep pockets indeed if they are planning to take losses or at best break even for the next 10 years.

DAZN hasn’t increased its prices it’s about 8 dollars a month on the year why are you guys still fighting that ? You are posting fabrication and not including that .

If you understand long term profit and know DAZN is a global entity that reaches other markets besides boxing this really wouldn’t be this complicated , they will take huge hits here it doesn’t mean they can’t take money from other profits and put them here.

Wrong as usual. The price of the monthly subscription went up.
Don't try to weasel out of acknowledging that by bringing up the annual subscription as a distraction.

DAZN Reveals $99.99 Yearly Plan, Monthly Increase to $19.99

https://www.boxingscene.com/dazn-reveals-9999-yearly-plan-monthly-increase-1999--137287

You guys can make 100 threads about Hearn/ DAZN whatever at the end of the day don’t get it ,if it bothers you that much ,me I like paying under 10 dollars instead of 80 dollar PPV ones that a certain fan base doesn’t even purchase themselves but constantly complain about apps ? Lol

I paid for the annual subscription, genius.

But I don't know if I will renew it in May. It would be great to be paying that much for PPV caliber fights but the fact of the matter is that DAZN isn't giving us too many of those.

You'll get a couple like the Canelo fights or Ruiz vs Joshua but the rest of the time it's subpar fare like Golovkin vs Rolls.

Let's see what kind of schedule they have planned out for next year. Mikey Garcia vs Jessie Vargas isn't going to cut it for me.

[Dip_Slide]

I think they make money not just from subscriptions but also from ads and sponsors in all the sports they cover. We don't know the respective numbers so we can't really judge, all I know is that they need to fix their technical problems and to continue buying fighters and making good fights until they control everything in the sport, that's the only way they can make revenue from boxing, controlling only a part of the sport no matter how big is losing money. It's all or nothing in this business.

[NORMNEALON]

I know that dazn is apparently relying on their subs from other sports and just trying to lock down the big stars in boxing etc. I just dont fully understand that and havent really looked into . Why use boxing a niche sport to try and build subs . Also I get there is mega money in the sport with the right names but they way they are throwing out money doesnt make sense . Seems like a poor investment however iam not complaining at all they are giving us some great fights. I just wonder when this ends and what is the outcome ?

[NORMNEALON]

Think there are several factors -

a) When building a new distribution channel, a fledgling business is expected to lose money for first 12+ months. Look at early Netflix financials, or Spotify stock. Since in last 10-15 years private equity became the goto financing instrument and DAZN is sponsored by PE, they're highly leveraged and don't expect to get the required ROI for 5-10 years - which includes losing money some of the time.
b) We may be underestimating how successful DAZN is at generating revenue. Let's say DAZN only has 1m subs, which (assume we can agree), and let's assume all of them subbed during the trial period at $100/yr. That's $100M for 12 months.
c) Then compare it to their spending. Canelo is a HUGE outlier. Their 2nd biggest star, G, makes what, $10-15m/fight? Then it falls off sharply from there. So if we assume that those 2 fight twice a year, that's ~$90M gone at worst. The rest of the guys don't make nearly as much, and sure, they'll cash out Kov and get G a good opponent for another $20M. Say they pay the rest of the fighters in their stable ~$50M, you're looking at a very conservative revenue of $100M vs. expenses of around ~160m? On top you have opex of say another 10-20m max, it shouldn't even be nearly as much since they do partner with promotional firms.

If you play with revenue numbers you'll see what they're banking on. In any case, it's way too early to talk about if they will be sustainable. They were prepared for the up front losses, otherwise they wouldn't get the idea off the ground. PBC was bleeding large amounts of cash for 2 or 3 years. Expect the same from DAZN.

This just explained my question in my previous post . Thank you sir .

[juggernaut666]

Wow! They must have deep pockets indeed if they are planning to take losses or at best break even for the next 10 years.




Wrong as usual. The price of the monthly subscription went up.
Don't try to weasel out of acknowledging that by bringing up the annual subscription as a distraction.

DAZN Reveals $99.99 Yearly Plan, Monthly Increase to $19.99

https://www.boxingscene.com/dazn-reveals-9999-yearly-plan-monthly-increase-1999--137287

I paid for the annual subscription, genius.

But I don't know if I will renew it in May. It would be great to be paying that much for PPV caliber fights but the fact of the matter is that DAZN isn't giving us too many of those.

You'll get a couple like the Canelo fights or Ruiz vs Joshua but the rest of the time it's subpar fare like Golovkin vs Rolls.

Let's see what kind of schedule they have planned out for next year. Mikey Garcia vs Jessie Vargas isn't going to cut it for me.

I didn’t say what you paid for I brought up something which was factually correct you left out ,again people like you who don’t know how to add and include the 8 dollar monthly year plan shouldn’t make threads like this ,that’s also a fact bc you made the thread to discredit DAZN but we know this , maybe you don’t realize we know ? Lol


Cancel your subscription ,it sounds like you just cry on here and don’t like boxing and need to stay on the PBC side of the street ,oh wow they’re so F”ing great . Lol


Joshua / Ruiz 8 bucks PLUS 4 HW fights vs Wilder vs Ortiz with lame undercard for 70 plus ,we know you can’t add but can you pick which one here is way more value for the dollar ? Lol

[Kezzer]

For those that don’t understand the concept - think of dazn as a gym style membership. Get you in on a cheap deal but get people paying and not utilising on a monthly basis going forward.

Not only that but dazn have a huge benefit being global in that they can utilise any “fight” for across multiple regions and likewise other countries events for America.

That’s being very simplistic but are the two key factors for their advantage.

[Thuglife Nelo]

For example, the $30 million per fight or whatever that they give Canelo is a number that worked under the old PPV model. Used by HBO and Showtime for Floyd/Pacquiao fights at the peak of their popularity.

If a PPV was successful there would be more than enough money to give the boxers that as a guarantee and even to pay them extra due to the upside.

But DAZN gets their revenue from subscriptions. And while I don't know the official number of subscribers they have I seriously doubt that it's enough to be turning a profit based on how much they spend.

So there's a question about how sustainable their business approach is.

That’s not how it works. PPV’s protocol philosophy is ONE LIVE EVENT. If DAZN didn’t pay a premium check, a fighter’s legal advisory could seek action and SUE SUBSTANTIALLY because this is OTT. Sports on Demand for Live and practical replay. PPV is not OTT nor have catalog like DAZN. They’re not the same. To rid of legal disputes because DAZN acquires subs daily, they have to pay out substantially.

This is common sense. If you ask what type of brain would sue DAZN if they were getting away with low purses... a phagg0t called Haymon could easily advise a fighter to sue.

All the premium purses for this future tech OTT is secure and justifiable.

[juggernaut666]

I know that dazn is apparently relying on their subs from other sports and just trying to lock down the big stars in boxing etc. I just dont fully understand that and havent really looked into . Why use boxing a niche sport to try and build subs . Also I get there is mega money in the sport with the right names but they way they are throwing out money doesnt make sense . Seems like a poor investment however iam not complaining at all they are giving us some great fights. I just wonder when this ends and what is the outcome ?

Boxing in the U.S is very winnable market for a huge investor to try and takeover. Other sports are to big ,getting individual athletes/ fighters is doable.

The XFL is again going against the NFL this will show you how hard it is and that’s just 2 leagues ,should be fun .


A niche sport but boxing really does revolve here most ( U.S } bc the rankings structure and such are basically U.S controlled , if DAZN takes market share it’s a huge gain, boxing in other countries aren’t as big here ,if you do your research you can see what DAZN pushes in other countries ,here in the U.S boxing is one of the few they can get a wide audience for .