By CultureBanx Team
- DAZN sports streaming service plans to expand to 200+ markets around the globe
- LeBron James is working with DAZN to produce behind-the-scenes documentary series leading up to big fights
DAZN, dubbed the “Netflix of sports” has built its brand on boxing and recently made several moves designed to bolster its streaming service, with plans to expand to 200+ markets around the globe. The company has about 8 million paid subscribers, compared to around 7.6 million for Disney (DIS +1.13%) owned ESPN+. Can a consistent level of streaming exposure to boxing and other international sports bring DAZN mainstream popularity?
Why This Matters: The sports streaming platform will make its debut ahead of its May 2020 bout featuring fighter Canelo Álvarez, and also include a catalog of past fights featuring boxing champions such as Floyd Mayweather Jr. Even NBA star LeBron James is working with DAZN, as his Uninterrupted media company is producing a behind-the-scenes documentary series leading up to big fights on DAZN.
DAZN they sold their data company Perform last year to venture capital firm Vista Equity Partners, helmed by Robert F. Smith
Pricing wise, DAZN is consistent with competitors and costs between $10 and $20 a month in most of its markets. The company generated about $300 million in revenue in the fourth quarter of 2019, according to The Wall Street Journal. However, they are burning through cash and spend in the ballpark of $1 billion and $1.5 billion on sports rights annually.
Amid an ongoing restructure at DAZN they sold their data company Perform last year to venture capital firm Vista Equity Partners, helmed by Robert F. Smith. That deal saw the company receive both cash and a significant minority stake in a new business.
Sports streaming domination won’t come easy or cheap. The company has spent lavishly to buy sports rights around the world, including an eight-year $1 billion partnership with Matchroom Boxing. In 2018, they struck a $365 million five-year deal with boxer Canelo Alvarez, at the time the richest single-athlete guaranteed contract in sports history.
What’s Next: Last October, DAZN was working with Goldman Sachs (GS -2.99%) to raise at least $500 million to support its expansion efforts. The streaming service is already available in eight markets outside the U.S.: Germany, Austria, Switzerland, Italy, Spain, Japan, Brazil and Canada. DAZN plans to remain ambitious by launching in 12 new markets at the same time. Will you be watching?
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