DAZN institutes new pay structure including annual fee

March 21, 2019

DAZN announced that starting next week it will debut a new annual pass option of $99.99 per year.  In the alternative, it will allow new subscribers to pay $19.99 per month.

DAZN is granting those that began with the $9.99 per month option to pay over the next year.  The new $19.99 per month option allows for a subscriber to cancel at any time.

The digital platform began this past September in the United States.  Since then it has featured Bellator events as well as boxing events.  The big news came when Canelo Alvarez signed on with the streaming site for a then-record 5-year, 11 fight deal worth $365 million.  It then signed GGG earlier this month to a three-year, six-fight deal which was reported in the nine-figure range although not disclosed.

It also made a run at heavyweight champion Deontay Wilder who had a $100 million offer on the table but the Alabama native turned it down to sign a pact with Showtime Boxing for his next fight.

Payout Perspective:

The new payment structure is good and bad.  The overarching reason for the change is to grow the subscriber base.  If you take advantage of the annual fee, you realize a 20% decrease over the year.  For boxing fans this is a good deal to pay $100 per year for good cards each month.  For MMA fans, the new pay structure will make you consider the need for the digital platform as Bellator has just a handful of exclusive cards on DAZN.  But, the $19.99 per month essentially accounts for combat sports fans that want to see a specific event but does not want to pay for the year.  With the GGG and Canelo fighting in the next couple months, the raise in subscription price ensures that the company maintains revenue without losing too much without charging a PPV.

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