DAZN seeks cash to help secure future

[NachoMan]

You do not have a decade or 2 to be profitable. Good god some of you have zero business sense.

4 years max in you must be profitable.

Dazn started in 2016. It’s 2020 in they are out of funding and massively in debt. It’s over.

That's not an accurate statement at all. It entirely depends on your business, of course. Look at Amazon. Jeff Bezos got criticized for years and years by every "expert" business blogger out there about how Amazon remained unprofitable. According to them no business could operate in the red or with such meager profits for as long as Amazon did. Investors would bail on them. Amazon was "supposed" to be out of business years ago, but where are they now? How wealthy are the investors who bought Amazon stock in 1998 and held onto it? Bezos' plan, of course, wasn't focused on short-term profits (not that investors will wait forever though), but rather MARKET SHARE. The company was focused for its first two decades on a growth strategy that prioritized expanding its market share of online retail, web services (AWS), media and more. Look at it now. Its the most valuable company in the world and Bezos is the richest man in the world. Why? The long view.

https://theatlas.com/i/atlas_BJjuqbWLz.png

[Inspired]

Sorry but I'll never understand a business model that pays Canelo $36 mil a fight and only charge $20 for his fights when those who pay $20 for his fights will easily pay $80 for his fight.

DAZN thinks there are tens of millions of secret boxing fans out there who were waiting on a cheaper option to watch boxing. That's just not true. The highest rating for a FREE boxing match the past couple of years was 6 mil by Spence. Let's say he got the Olympic boost. So the highest rating for a FREE boxing match would be Thurman vs Garcia at 5 mil.

1) Your thinking is very limited. The example these people look to is the English Premier league. in the UK, the way boxing has blown up is the way the EPL was blowing up in the 90s.
It went from being just one of the leagues in Europe, to becoming the most watched league in the world, attracting over 3 billion viewers globally per season.

2) obviously when it comes to boxing, America holds the history and prestige. Effectively America is to be the 'stage' to showcase the sport of boxing, along with the UK, to the rest of the world.

You know what my fav sport was growing up? football(soccer). However in the age of social media/youtube, seeing boxing up close made me a fan. So basically the same way boxing has become my fav sport, it easily has the potential to globally.

5m viewers for a country of 300m is crap, but that's because of the past ppv model. Boxing can be HUGE in america alone, but globally? long term with high speed broadband and growing megacities all over the world, people living in high rise towers, with a growing world economy? streaming is the way to go.
you're underestimating the world actually.

3) before the AJ-Ruiz 1 fight, Dazn was owned by Perform Group. Perform group was sold to another big data company for a shareholding. In a sense, perform group hasnt 'vanished' into thin air, it's just grown into something even bigger.

Perform group via opta sports, specialise in providing big data to various industries inc/esp the betting industry. They only purchased dazn to effectively have ownership of said data.

BIGGG money here, more than you know. Arum touched on it a little before. When sports betting was legalised in the US nationally, Arum said 'the sports book in Atlanta is now bigger than it used to be in Vegas'..and yet those numbers pale in comparison to the numbers in the far east where ******** is much bigger. ******** tied with sports is what actually drives the real interest in sports like soccer.

Now although it wont be dazn making that money directly, they're still going to be providing said data to a bigger firm than what opta sports was.

This isn't even getting into sponsorship money that will come in time.

4)
Just to put things into perspective, they recently had 8m global subs. At the lowest pricepoint of $10 a month, that's just under $1b a yr...and that's just a start. That doesn't inc the revenue they're generating from data/betting indirectly.

As for their costs, they actually share deals through bigger providers.

So for example, with the Bundesliga (Germany) Eurosports was paying @ $75m a yr. Dazn had a deal with eurosport (obv far less than that). Since Eurosports has backed out, Dazn have done a direct deal with Bundesliga, it will no doubt be less than $75m a yr (its actually only for the remainder of the season anyway).

another example, sky pay $1bill a yr for the Italian Serie A. Again Dazn's deal is with sky. They pay less than that.


DAZN, the global OTT sports streaming service, launched in Italy in August 2018 after the acquisition of rights to Serie A. The three-year deal, worth €193 million ($228 million) per season, runs from 2018-19 to 2020-21


So probably $300m a yr on Serie A, Bundesliga and Champions league. Boxing, Matchroom $120m a yr, Canelo and GGG, say it comes to $240m a yr.
$100m a yr deal with the MLB. nba rights $9m a yr.

Take a rough estimate, add a bit, say they're spending $700m a yr on rights fees. They're profitable, but this is just early days.

Personally i think their growth even in boxing, will come from outside the US. I think the US is just a 'stage'. They don't actually need guys like you subbing to them, it's about the far bigger markets in the east.
the US is saturated, other markets aren't. That's why the majority of their 8m subs have come globally.
200m territories?

Also, with the likes of Canelo, GGG, AJ, it isnt just about 'how many people are subbing to watch them fight'. The mere fact they are associated with those names gives them credibility and brand recognition.
Anyone who's a fan of canelo will know about Dazn as a brand, with or without a subscription.

Effectively what they've marketed themselves as 'the netflix of sports' and are market leaders in that niche.
No one is coming close to them, not when you include their affiliation with the big data side and sports betting.

[dustinlaspada]

Aiming to bring the sport of boxing back to life. 15 posts in, I can post my video links to youtube. Started posting clips recently.

[UNBANNED]

You do not have a decade or 2 to be profitable. Good god some of you have zero business sense.

4 years max in you must be profitable.

Dazn started in 2016. It’s 2020 in they are out of funding and massively in debt. It’s over.

Oh you're right about that. They'll turn a profit sooner but the goal is to have a stranglehold on the entire sport within ~2 decades

[BangEM]

That's not an accurate statement at all. It entirely depends on your business, of course. Look at Amazon. Jeff Bezos got criticized for years and years by every "expert" business blogger out there about how Amazon remained unprofitable. According to them no business could operate in the red or with such meager profits for as long as Amazon did. Investors would bail on them. Amazon was "supposed" to be out of business years ago, but where are they now? How wealthy are the investors who bought Amazon stock in 1998 and held onto it? Bezos' plan, of course, wasn't focused on short-term profits (not that investors will wait forever though), but rather MARKET SHARE. The company was focused for its first two decades on a growth strategy that prioritized expanding its market share of online retail, web services (AWS), media and more. Look at it now. Its the most valuable company in the world and Bezos is the richest man in the world. Why? The long view.

https://theatlas.com/i/atlas_BJjuqbWLz.png

Intelligent post and succinctly put.

I was going to use the Amazon example as well but I left it out because Amazon started out mostly as an eCommerce website.

From the posts, it's easy to deduce that most of these guys don't understand how businesses work. Once you go into business, especially with a dream of building an empire, look for profits in the short term - the business is bound to fail. You have to go with the mindset that the first few years would be tough and the short term goal should be about reach. Taking losses is part of the game. But as long as your outreach keep getting bigger, you're winning.

Netflix also had the same problem DAZN is going through now with covid-19 with September 11. And up until that point, the company wasn't profitable and 9/11 made it worse. After a couple of years, they decided to sell IPO and it grew from there to almost $200billion now. DAZN has the same potential and I hope they allow the public get access to the company's equity soon.

If I were a boxer, I'd be asking for equity now. That's a solid investment that will pay dividends in the next few years.

[IlyaMuromets]

I'm a very satisfied American subscriber and just renewed my annual subscription. What are you talking about? DAZN has been a great deal for consumers. How is it expensive?

Huh? Well I am the exact opposite. I paid $99 for a one year subscription and have found only one single fight on it that interested me, the Joshua-Ruiz rematch, almost six months ago. Even before the shutdown it was mostly junk - talking head filler material, junk sports, junk fights, and replays.

[Ritz Kola]

I'm a very satisfied American subscriber and just renewed my annual subscription. What are you talking about? DAZN has been a great deal for consumers. How is it expensive?

You're also lying more than Eddie does on a Sunday. 😂
You renewed a yearly subscription during a pandemic where there's no new content being put out and deadzone hasn't paid for rights with their other sports en****** on the app?! Yeah right. Dazn is expensive and terrible. And horrible for. consumers in MY country, America, which is why its in this position.

[Inspired]

Huh? Well I am the exact opposite. I paid $99 for a one year subscription and have found only one single fight on it that interested me, the Joshua-Ruiz rematch, almost six months ago. Even before the shutdown it was mostly junk - talking head filler material, junk sports, junk fights, and replays.

you're not a real boxing fan are you?

For example, the Mikey Garcia vs Jesse Vargas fight was a decent fight...but the undercard? brilliant. Those were proper fights. Personally i enjoyed that.

We got to see Pacheco and Israel Madrimov who have massive potential. Chocolatito, Julio Cesar Martinez and Joseph Parker.
Julio Cesar Martinez vs the welsh kid stood out, that was a top fight esp from a kid who's a warehouse(amazon) worker.


The Miami card, sure they had a crap youtube fight, but Tevin Farmer vs Jojo Diaz & Roman vs Akhmadaliev were fking quality fights.

It looks like Akhmadaliev and Madrimov are going to be quite something.

Again lots of talents were on those cards and we also saw Andrade.

Then there was the Danny Jacobs vs JCjr card, once again with a stacked undercard.

if you're just a casual then you should have got the $20 one off fee.

[UNBANNED]

DAZN will reach the point when they will have steady amount of subs ,Fights will stop spikeing numbers of subs ,and you have fighters like Floyd who can generate big ppv numbers ,how will DAZN justifie paying fighter like that 50m per fight? They will not make money from that ,they will reduce contracts and big stars will leave to fight on PPV.

B and C stars dont want to fight for peanuts , especialy when they can sign with diffrent promotions.

If DAZN will get big it will be from soccer and NBA ,MLB etc not boxing.

B and C stars follow A stars and A stars need someone to fight...which are the B and C stars.

They're only paying big money up front. Once they get a deep enough lineup they'll slowly be able to reduce amount they're paying out.

Keep in mind, like Netflix or any other streaming service, they will also slowly increase monthly subscription.

[asgarth]

Huh? Well I am the exact opposite. I paid $99 for a one year subscription and have found only one single fight on it that interested me, the Joshua-Ruiz rematch, almost six months ago. Even before the shutdown it was mostly junk - talking head filler material, junk sports, junk fights, and replays.

Not sure if you are just biased, a casual fan or have extremely high standards.

DAZN had a lot of good and competitive fights.
Yafai Vs Gonzalez / Martinez Vs Harris / Roman Vs Akhmadaliev / Farmer Vs Diaz / Martinez Vs Rosales / Joshua Vs Ruiz II / Taylor Vs Prograis / Inoue Vs Donaire / Hunter Vs Povetkin / Ortiz Vs Orozco / Hooker Vs Ramirez / Garcia Vs Vargas / Andrade Vs Sulecki / Dorticos Vs Tabiti / Briedis Vs Glowacki / Canelo Vs Kovalev / Canelo Vs Jacobs / Rungvisai Vs Estrada / Roman Vs Doheny / Taylor Vs Baranchyk / Inoue Vs Rodriguez