27/10/2020   Hannah Walsh
DAZN looks to linear in Germany

Sports streaming service DAZN has applied for permission to distribute its linear channels DAZN1 and DAZN2 in Germany. The application follows DAZN’s successful bids for the exclusive rights to all Friday and Sunday Bundesliga matches from 2021/22 until 2024/25 in Germany, Austria and Switzerland, as well as exclusive rights for the UEFA Champion’s League in Germany from 2021/22 until 2023/24.

Ampere’s Consumer study shows that the Bundesliga and UEFA Champions League are the two most popular sports leagues in Germany (excluding the FIFA Football World Cup), enjoyed by over a quarter of households, with 54% of those consumers willing to pay to watch them. However, of the 5.1m households willing to pay to watch the Bundesliga or Champions League, only 1.1m currently subscribe to DAZN’s SVoD service.

In Italy, DAZN launched its linear channel DAZN1 in September 2019, which can be accessed via sports rights rival Sky Italia, whose customers can add DAZN1 to their existing subscription package for an extra €7.99 per month.

If DAZN were to secure a similar deal in Germany with Sky Deutschland, it will gain access to those Bundesliga and Champions League fans who subscribe to Sky Sports but are yet to subscribe to DAZN (approximately 1.9m households). If all of these consumers were to add DAZN to their current Sky Sports package for an additional €7.99 per month, it would generate €153m yearly revenue for DAZN.

Revenue from DAZN’s SVoD subscribers in Germany is forecast to reach €200m in 2021, so with additional new subscribers coming via Sky Deutschland, it is possible for DAZN to generate a return in excess of its Bundesliga rights value of €325m per season. However, that would still fall short of Ampere’s estimated combined value of over €500m for the Bundesliga and Champions League rights.

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