DAZN has been the subject of several articles over the last few weeks questioning the long-term sustainability of the streaming service.
Huge contracts handed out to Canelo Alvarez and Gennady Golovkin have pushed the need for subscriptions to an imperative point.
Despite statements from the likes of Eddie Hearn on DAZN’s increasing successes, it’s a well-known fact that purchases are not on target.
Around 650,000 in the United States is way below the standard needed. DAZN is pushing for longevity in a crowded marketplace.
ESPN already boasts 3.5 million subscribers to their app module. ESPN is also half the price and recently reached a collaboration deal with Disney.
Add to that the fact ESPN has a clutch of pound-for-pound stars in their ranks. DAZN is falling behind.
Canelo is its main asset. The Mexican commands the majority of new eyes on the platform. His big rival Golovkin has yet to fulfill the promise a mammoth deal had hoped for.
At 37 and signing a six-fight deal, it’s hard to see why ‘GGG’ was handed such a long contract in his twilight years.
DAZN needs PAY PER VIEW
DAZN should have pushed for Canelo vs GGG III and maybe even IV as part of the deal, as opponents are now commanding vast fees way outside of the usual spectrum.
So how do they move forward? – Well, it’s quite obvious…and it doesn’t mean hiking the price to $50 as Hearn suggested. That would be nigh on business suicide.
A much more viable option would be for DAZN to launch a PPV service of its own.
For example, it would be more viable if they charged $69.99 for non-subscribers and $19.99 extra for those signed up for the current module.
Any move of that ilk would need to see the $19.99 per month on offer right now. Up from an original $9.99, reversed.
Paying $9.99 for standard shows each month [doing away with the $99.99 yearly] and an extra $19.99 for say four to six events per year would be the order of the day.
Those not signed up could then have the option to either sign-up and pay the combined cost of around thirty bucks to view the PPV and the rest of the month, with the added bonus for DAZN that they may well stay on when the price goes back to ten bucks the next month.
This would mean never having back-to-back PPVs in consecutive months, but it is very doable.
It’s just a thought. Maybe one that could result in a lot more revenue over a 12-month period than simply relying on a product that isn’t fully matured yet.
Too many mediocre shows are currently going down on DAZN. This means a precarious future until fully resolved.
