Bloomberg.com reports that DAZN lost $2.3 billion in 2021 as costs soared and it has lost more than $6 billion since 2016. The article indicates that much of the costs are attributed to rising media rights for soccer.
DAZN spent a healthy share of capital into acquiring Italian and German soccer rights which are streamed on its digital platform. The costs outweigh the revenues as the sales for new subscriptions were coming from Europe, the Middle East and Africa.
Despite revenue rising in 2022 to $2.3 billion, the spend for securing and retaining soccer rights are mounting.
Payout Perspective:
The article does not discuss boxing likely because the costs it expends for the sport do not rise to the level of soccer. In an effort to bring in more subscribers it has gone all-in into soccer to expand its audience but with the rising costs of the need for content, it is losing money. Interesting enough, there was speculation that it had been in the running for NFL rights which obviously would have been an astronomical spend. This report also reflects upon the subscription-based streaming model and how an entity can lose money quickly.
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