Leonard Blavatnik, the UK-based billionaire owner of international sports streaming service DAZN (through his Access Industries business), has invested another nine-figure sum into the streamer to aid it in competing with other streaming giants.
The latest funding tranche, amounting to $827 million, takes the businessman’s total investment in the service to $6.7 billion.
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This was revealed in the platform's set of financial accounts for the 2023 financial year, which were made public this month, showcasing a pre-tax loss of $1.43 billion (a growth from the loss of $1.2 billion in 2022) despite a growth in revenue year-on-year from $2.19 billion to $2.86 billion.
DAZN’s user base grew in the year, as did its paid subscription tier, but that was still not enough to offset its operational costs, mostly composed of spiraling accumulated rights fees.
Rights costs for DAZN in 2023 amounted to $3.1 billion, up by 32% ($757 million) on the $2.4 billion it paid across 2022.
The service still has $9.4 billion in sports rights fees it has committed to pay across the coming years, and will likely still add more as it looks to compete with the likes of Amazon Prime Video and new sports rights entrant Netflix.
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By GlobalDataIts struggle, however, is competing against diversified media businesses that offer entertainment such as film and TV along with other benefits alongside their sports programming whereas DAZN, solely sports-focused with a heavy priority in boxing (globally) and soccer (in certain markets), charges a similar if not larger fee for what is a less expansive offering.
Shay Segev, DAZN chief executive, said prior to the release of the results that the company is aiming to surpass $6 billion in revenue by the end of the 2025 calendar year, adding that the firm is profitable in most of its top 10 markets, although that only illustrates the scale of the loss it is making in those other territories, as well as outside the top 10.
The $6 billion revenue target will be aided by the bonus income granted by the firm’s purchase of Australian major linear TV operator Foxtel, announced late in 2024.
Foxtel is one of the most prominent rightsholders in the country, boasting 4.7 million subscribers and holding broadcast rights to competitions such as the Australian Football League, rugby league’s high-profile NRL, motorsports’ Formula 1, and in a recently expanded deal, Australian domestic cricket.
The broadcaster also holds rights to top-tier cricket such as the Indian Premier League T20 competition through 2027, and operates the popular Kayo OTT service, which achieved record viewership in 2024.
In addition, DAZN is also holding out for what could be up to $1 billion in investment from Saudi Arabia’s Public Investment Fund (PIF) via its SURJ Sports Investments arm.
A deal, worth as much as $1 billion in investment in exchange for a 10% stake in the streamer, is reportedly in its final stages and could be announced as soon as the end of January.
Rumors had been circling regarding the PIF’s interest in DAZN since October 2024 – although that same month the PIF publicly stated it had no interest in DAZN.
DAZN has a good relationship with authorities in the Kingdom and in October 2024 agreed a major multi-year broadcast partnership with the Riyadh Season brand of sporting and entertainment events from the Saudi capital, becoming the exclusive global broadcaster of its events (excluding the Middle East and North Africa).
The broadcaster is also a significant rights-holder for the Saudi Pro League soccer competition, while earlier this year it provided coverage of the Esports World Cup from Riyadh.
In addition, the ties between the country and DAZN were strengthened in September when the streaming platform announced the signing of a memorandum of understanding (MoU) with Saudi Arabian soccer side Al-Hilal for the establishment of a new global channel – backed by Riyadh Season – on the service.
