DAZN 2019 Financials and Subscriber Deep Dive Domestic Rights Key to Unlocking Audiences

The 20,000 Foot View:  DAZN’s 2018 financials highlighted the difficulty in encouraging consumer adoption of a digital live sports proposition with a limited portfolio of sports rights. 2019 marked a year of consolidation and growth. DAZN learnt quickly that without premium domestic content it is difficult to penetrate competitive markets effectively. This report presents key figures from MIDiA’s DAZN revenue and subscriber model. The full dataset is published alongside this report, with            results across its nine markets of operations, additionally including quarterly consumer data reported in MIDiA’s proprietary survey.

Key insights

• 2019 was            year of strong growth for            with revenues increasing            year-on-year from            in 2018 to            million in            and subscribers up           
• Contributing to            growth was the successful launch            DAZN in its eighth and            markets Spain and Brazil
• DAZN’s leading            Japan, accounts for the largest            of revenues            with            million, with            subscribers accounting for            of its            base 
• DAZN’s Italian            accounted for            of company revenues,                       on 2018 to            million in           
• In            2019,            Italian consu mers watched Serie            driving DAZN’s weekly average user            to            with            of DAZN subscribers            Serie A 
• DAZN’s US            grew            in 2019, accounting for                       of global revenues
• DAZN’s leading            for subscribers in 2019 was            with            million subscribers, accounting for            its global subscriber base
• DAZN’s German            is the most likely to            the strongest resilience during the            due to its growing portfolio            premium domestic content
• With J-League            in Japan, Serie A in            and a burgeoning German proposition,            is becoming a compelling choice            sports fans as we approach            for sporting rights in 2021

Companies and brands mentioned in this report: Access Industries, Bayern Munich, BT, Bundesliga, DAZN, Financial Times, Golden Boy Promotions, J-League, Matchroom Sports, MLB, NFL, Perform Group, Serie A, Sky, Sky Deutschland, UEFA Champions League (UCL), UEFA Europa League, UEFA Nations League, Warner Music

INTRODUCTORY NOTE

This report showcases the data from MIDiA Research’s DAZN revenue and subscriber model (a full dataset is published alongside this report). The data refers to full-year 2017 to 2019. Therefore,            impact is not reflected in these numbers. This pre-COVID picture reflected a strong growth year for the streaming service, having launched in several new markets in 2019 and building out compelling value propositions in existing markets supported by acquisitions of premium domestic rights. While the early indications are that subscriptions have proven to be relatively resilient during lockdown, the pandemic-enforced postponement of live sports has hit sport-centric services the hardest without meaningful content to provide to subscribers, subsequently presenting a significant risk that growth may slow (and even decline) in 2020, with churn increasing during the recession.