DAZN: Where the money is coming from?

DAZN ain't that new they making a fortune in other countries

 

Hmm, they must be throwing good money after bad money then.

 

Are they? According to their latest accounts Perform Group made a £370m loss

 

Investment.

 

So, are they investing or making a fortune?

 

they sell GGG hats and shirts shrines and trophies to everyone on this forum that is how they get their money

 

This is true, although you do not embark on a new start up like this without envisaging several years of losses as you try to achieve the required scale.

They will lilkely be focussing on two aspects of the funnel, acquisition and retention. How many new customers can we attract and how many of them will stay with us after the big events. From those figures they will be adjusting their marketing and content budgets. The level of data which a business like that can accumulate means that the DAZN of a year or two years from now may look very different to that today, regardless of what they're saying in the press.

 

What DAZN is spending on boxing is a drop in the ocean on the grand scheme of things. They spend $700m a year on Seria A in Italy for example. They are aiming to be as big as Netflix, like Netflix they spent a fortune to get where they are today before hitting profits. It's a private venture so they don't have to worry about stock price. You will see the big money come out when NBA/NHL/NFL/MLB rights come for bidding or if they venture into the UK market and want EPL rights.

 

Yes, they're very good at spending money. That doesn't mean they're "making a fortune".

 

Im presuming. Are you saying they are on the rocks? About to go bust? Im not clued up on business but i hear they are globally very very strong and are ticking along nicely.

 

I doubt any of their markets are making a profit yet. Anything they make is going to be reinvested into additional content, because this business depends on scaling to be truly profitable.

They are doing some clever things though. Boxing is one of the few sports where you can create your own content. So they partner with Matchroom and put these cards on for the US market, but they then get to push them to boxing fans in their other territories. You can't do that with bought in rights, you'd need to pay again for each additional territory...

 

Not necessarily on the rocks or to go bust. But I highly doubt they are "making a fortune". I know they are relatively successful in some countries, but even that could only mean that they have quite a lot of subscribers. A business can be huge, have a lot of customers, but, at the same time, be in the red, at the break-even point or only somewhat profitable. And DAZN's business is very tough — they have to satisfy their customers, but, even before that, they have to educate their potential customers, to teach them "the new way" (of getting content). Even Netflix, which is quite popular already, only relatively recently become profitable.