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Jake Pollard reports on DAZN’s surprise deals with FIFA, as the global sports OTT platform struggles to win over Ligue 1 viewers, impacting betting markets
Global sports streaming service DAZN continues to splash the cash, with the latest high-profile deal a reported €1bn agreement with FIFA to broadcast the expanded Club World Cup (CWC) globally in 2025.
Eyebrows were raised at the reported €1bn fee, especially as it’s on a free-to-view basis and given FIFA’s difficulties in selling the rights of the club competition in the US, where Fox is believed to have bid just $10m.
Some observers suggested the move was influenced by DAZN’s potential Saudi investors. However, the Saudi Public Investment Fund went on record to deny investment conversations and did not comment on reports that the CWC deal was linked.
The CWC rights acquisition underscores DAZN’s ambitions to invest heavily in global sports broadcasting. But this has also raised questions about long-term profitability as its most recently reported results showed operating losses of more than $1bn in 2022.
DAZN is also encountering a tough battle for subscribers in France. The protracted talks to acquire Ligue 1 rights were detrimental to all parties and for one industry contact, “the TV rights fiasco has been a disaster for French football”.
As a result, DAZN’s offering has yet to catch on with many fans and illegal streaming of matches is widespread and easily accessible.
TV travails impact French sports betting
Higher subscription fees and DAZN’s less-than-comprehensive offering, for example, it doesn’t have the rights to the 5pm Saturday fixture, add to the negative mood.
The insights of a recent poll of more than 1,000 French football fans by Odoxa, detailed that 54% respondents said the limited access to games had reduced interest in watching Ligue 1. The ripple effects have reached France’s sports betting market.
Ligue 1 is a critical driver of betting activity and another industry contact told Gaming&Co that DAZN’s limited reach had led to “decreased engagement with the country’s top football league, although it has increased engagement in the English Premier League and La Liga in Spain”.
Another executive confirmed that “stakes on Ligue 1 have dropped while other European leagues are seeing increases in volumes”. They added that radio audiences for L1 were also down.
The negativity has been compounded by the departure of superstar Kylian Mbappé from Paris Saint Germain (PSG) to Real Madrid this summer. The French star’s name and reputation alone attracted audiences to Ligue 1.
There are rumours that DAZN might launch DAZN Bet in France, which would suggest it remains committed to integrating sports viewing and gambling, a strategy it has pursued in the UK and Germany.
Early exit…
Subscriber numbers are a closely guarded secret, but the rumour that DAZN has just over 100,000 paying customers (the company denies this) would be far off its initial 500,000 target. The €50m bonus it would have received had it reached 1.5 million subscribers is also a long way off and speculation abounds that it will, in fact, leave the market after just one year.
While DAZN’s CWC coup signals its global intent, its French venture highlights the challenges of balancing major investments with local market realities.
