DAZN's Club World Cup Rights Cost $1B. Its Streams Are Free.
Global streaming company DAZN acquired the rights to this year's Club World Cup in late 2024 for a reported $1 billion. Starting Saturday, it will stream games from the tournament in 15 languages around the world—for free.
It is a 'big bet' on using a single sports competition to drive sustained viewership long term, DAZN's global chief revenue officer Walker Jacobs said in an interview about the company's business strategy.
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'We think this is going to be a way to make DAZN much bigger in many, many parts of the world,' Jacobs said.
UK-based DAZN launched in 2015, correctly forecasting a world where fans consumed sports on streaming services. It has since gobbled up sports rights including marquee European soccer in home markets, major boxing events and NFL action outside the U.S. The platform now streams more than 90,000 events a year in 200 countries.
Jacobs said the Club World Cup will be particularly helpful for the North American business, as well as growth markets stretching from Latin America to Japan. DAZN has had a smaller footprint in the U.S. following the conclusion of a 2010s push that saw it grab former ESPN president John Skipper and sign an MLB rights deal for a reported $300 million in 2018. In recent years, it has expanded free and ad-supported access, such as streaming Women's Champions League soccer matches on YouTube.
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While Club World Cup games are available for free, DAZN is reserving certain features in a 'FIFA Club World Cup premium' package for its $30 per month (or $225 per year) subscription tier, such as improved audio and picture quality, fewer ads, and extended highlights and replays.
DAZN has also made sublicensing deals around the world—including with TNT Sports and Univision in the U.S.—worth 'hundreds of millions [of dollars],' according to chief executive of growth markets Pete Oliver. The company has inked new sponsorship deals to offset the cost it paid for the rights as well. DAZN plans to roll out two-box advertising that shows commercials during stoppages in play, a first in FIFA competition. Then there are additional tie-ups for content on TikTok and X.
'A subscription service business is something that is sort of a cornerstone of what our offering is and will continue to be,' Jacobs said. 'But in all of our rights deals, we're trying to make sure that we have the flexibility to window the content in the ways that are optimal to us and optimal to our business model.'
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