They work on monthly subs. They pool the money. The £1.99 is introductory in UK and will likely rise to around £6.99 per month the price for the likes of AJ will be factored as annual subs rather than monthly one off. Many people never cancel once signed up. The average time for a user to cancel once subscribed for a service they don’t want is 8 months. If that was the price it’s then £6.99 x 8 = £55.92 x 800,000 that then turns to £44m of which would cover 1 AJ fight. They spend £25m of that on AJ which is more than he gets from Sky amd spend the rest on other events. On top of this they can get offer him income from 200 territories for the worldwide rights whereas usually it’s tough to sell some of the UK fights to American networks. For instance they could say £50m for worldwide whereas he may usually only make £35m from 10-15 territories which is often tough work when other events are competing for the same pool of money DAZN then hook the subscribers to not cancel by placing a Canelo or AJ fight just after the 8 months to convince people to stay on. Rinse and repeat.
I did and had a subscription based business at one point. Also part of my degree was in this field. That 8 months is across the board for subscription business models such as gyms etc but the same logic applies. For some reason on average it takes people 8 months to get around to cancelling unwanted services due to the effort involved. Some cancel instantly and some take years. Dazn will be geared to ensuring there is some sort of must see event prior to mass cancellations. Aslong as there is a decent event every quarter it should keep the customer base satisfied. As it’s global they don’t need huge numbers in any particular country. But rather a decent amount across the board.
Good explanation. Businesses use all sorts of things to keep subscription models running - from making the cancellation section of websites really hard to find to boosting the content you get from being a subscriber. Amazon Prime is a good example, although I would argue Prime is actually excellent value for money if you utilise all the benefits.
Cheers mate. And keeps you buying tons of products from Amazon where they make their true profit. free deliveries etc is nothing when it will be costed into the commission charged to sellers etc
Same reason they placed GGG AJ and Joshua all within a week on the initial launch as it will drive big initial subs at £1.99 and will likely have Canelo vs Saunders in May before people begin to cancel. Followed by AJ in June. When you will find the price will increase.
That's reallly interesting I never knew that's how it works out. I can say I've been lazy in cancelling subscriptions before.
Maybe eddie offered to sign one sided rematch clauses? Because after drew vs Wilder Fury did not had this WBC belt and most likely offer was like for away corner, a B side guy. We do not know offered contract's details. Whyte vs Povetkin too later appeared that some clause had been there. Eddie is eddie.
Maybe if they put Usyk in with Whyte while Fury and AJ sought things out then you have the narrative of 'Usyk the Brit Basher Vs winner of AJ/Fury'. BS like that usually helps get the casuals on board if nothing else.....
The deal was £20m for Breazeale amd two AJ fights at £40m each. It was well documented that it was a £100m 3 fight deal. The rematch would have been no matter who won. it’s standard in big title fights. Hardly and Eddie thing.
Yeah I think that’s what they’ll do. Double bubble for Eddie and brings his profile up. Unfortunately though i think it will just be a re run of the chisora fight as there’s nothing between whyte/chisora really. I’d rather see whyte v wilder and Usyk v Ruiz personally
I am sceptical whether Whyte would want Usyk. A defeat to Usyk, especially if he's made to look pedestrian *should* be the end of Whyte as a big draw. (As we've seen with Chisora, David Price etc, there's still a place at matchroom for journeymen). I think Whyte vs Ruiz would be a great fight stylistically if it could be made. Whyte vs Wilder would also be fun. If Usyk wanted to make a statement, he'd go to the US and fight Wilder, beat him and take on Joshua vs Fury winner.